wildcat

12:29am, The Detroit News, Monday, April 27, 2009 "Chrysler, UAW reach deal: Pact clears way for Fiat alliance; GM to offer bond exchange" by Alisa Priddle and David Shepardson " . . . [ GM ] also will lay out new details today of its revamped restructuring, including shuttering its Pontiac brand . . . "

There's a place inside me that will always hold good memories of Pontiac... and my personal favorites the Bonneville, Catalina, Grand Prix, Tempest, GTO, and, more recently, G8.

My name's not klondyke, by the way.

Please read the update I inserted at 11:45pm into my post above.

Abbott and Costello? Laurel and Hardy? Fritz and "Ditz" (LaNeve)? Josh and... no, even Josh says that Pontiac will be killed Oh I get it, GM will make the announcement about Pontiac getting killed on the day after tomorrow EDIT: update, 11:45pm Sunday... "GM to announce brand changes, restructuring moves" by TOM KRISHER DETROIT (AP) — The storied Pontiac brand is dead and more car factories and jobs are about to disappear — the latest casualties of a massive restructuring plan that GM is counting on to help it stave off bankruptcy protection. The struggling automaker will announce details of its plan at 9 a.m. EDT Monday as it makes an offer to its bondholders to swap debt for company stock . . . Two people briefed on GM's plan confirmed that it includes the demise of Trans Am sports car brand Pontiac, 83 years after the first Pontiac car was introduced . . . efforts in the last few years to market Pontiac as performance-oriented brand failed . . ."

Nothing like a thread about positive Buick news that's been hijacked to Cadillacsville

Pontiac spokesman Jim Hopson declined to comment to Automotive News on Pontiac´s future. “I can´t speculate what next week is going to hold,” he said. “When we were asked to go back and look at the viability plan, everything went back on the table. We’re reviewing everything. Nothing is sacred. We’re still under the original viability plan until told otherwise.”

Now that the story has spread to various news outlets, why does GM wait until Monday to make an announcement? What is their strategy? To pickup any weekend car sales? LOL Isn't it better to deliver bad news Friday at 5, after the stock market closes - rather than first thing Monday morning?

There's no easy way around it. I imagine that some of the Pontiacs (G3, for instance) will sit on the lots and die a slow death with huge markdowns, while the remaining G8s will be snapped up.

I'll hazard a guess... G3 = dropped; Vibe = dropped (better products from Opel); G6 = dropped; G8 = changed to Chevrolet if Zeta platform continues; and Solstice = dropped (along with the Saturn Sky).

This actually comes from a GM official in Shanghai, China. Click on this.

And now Jamie LaReau of Automotive News is reporting that GM will cut Pontiac next week.

Up to now, we only had the Edmunds report to go on. Now Bloomberg is saying it as well, here.

Jerry Forbes adds his opinion about GM's future here.

I posted this 3 minutes ago in the Pontiac forum.

I didn't say it, they did. Click Here. PRESS RELEASE: FOR RELEASE: 2009-04-27 GM Accelerates its Reinvention as a Leaner, More Viable Company Updated Viability Plan Speeds, Deepens Restructuring of U.S. Operations DETROIT -- General Motors (NYSE: GM) today presented an updated Viability Plan that will speed the reinvention of GM's U.S. operations into a leaner, more customer-focused, and more cost-competitive automaker. The Viability Plan is included in an exchange offer whereby GM is offering certain bondholders shares of GM common stock and accrued interest in exchange for certain outstanding notes. Revised Viability Plan goes further and faster The Viability Plan announced today builds on the February 17 Viability Plan submitted to the U.S. Treasury. http://media.gm.com/servlet/GatewayServlet...amp;docid=52168. The revised Plan accelerates the timeline for a number of important actions and makes deeper cuts in several key areas of GM's operations, with the objective to make us a leaner, faster, and more customer-focused organization going forward. Significant changes include: * A focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand. * A more aggressive restructuring of GM's U.S. dealer organization to better focus dealer resources for improved sales and customer service. * Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants. * Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007. "We are taking tough but necessary actions that are critical to GM's long-term viability," said Fritz Henderson, GM president and CEO. "Our responsibility is clear - to secure GM's future - and we intend to succeed. At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team." Fewer U.S. brands, nameplates, and dealers As part of the revised Viability Plan and the need to move faster and further, GM in the U.S. will focus its resources on four core brands, Chevrolet, Cadillac, Buick and GMC. The Pontiac brand will be phased out by the end of 2010. GM will offer a total of 34 nameplates in 2010, a reduction of 29 percent from 48 nameplates in 2008, reflecting both the reduction in brands and continued emphasis on fewer and stronger entries. This four-brand strategy will enable GM to better focus its new product development programs and provide more competitive levels of market support. The revised plan moves up the resolution of Saab, Saturn, and Hummer to the end of 2009, at the latest. Updates on these brands will be provided as these initiatives progress. Working with its dealers, GM anticipates reducing its U.S. dealer count from 6,246 in 2008 to 3,605 by the end of 2010, a reduction of 42 percent. This is a further reduction of 500 dealers, and four years sooner, than in the February 17 Plan. The goal is to accomplish this reduction in an orderly, cost-effective, and customer-focused way. This reduction in U.S. dealers will allow for a more competitive dealer network and higher sales effectiveness in all markets. More details on these initiatives will be provided in May. Sales volume and market share projections The Viability Plan anticipates improved financial results despite more conservative U.S. sales volume expectations going forward. The lower volume expectations are the result of managing the business with fewer nameplates and dealers, leaner inventories, and reduced market share. To address the inventory issue, GM on April 23 announced U.S. production schedule reductions of approximately 190,000 vehicles during the second and early third quarters of 2009. The Viability Plan also reduces GM's market share projections to adjust for the impact of the brand and dealer consolidation, as well as for the short-term impact of speculation regarding a GM bankruptcy. The plan assumes a 19.5 percent share in 2009, with share stabilizing in the 18.4 to 18.9 percent range in subsequent years. "We have strong new product coming for our four core brands: the Chevrolet Camaro, Equinox, Cruze and Volt; Buick LaCrosse; GMC Terrain; and Cadillac SRX and CTS Sport Wagon and Coupe," said Henderson. "A tighter focus by GM and its dealers will help give these products the capital investment, marketing and advertising support they need to be truly successful." Lower structural costs, lower breakeven point The Viability Plan also lowers GMNA's breakeven volume to a U.S. annual industry volume of 10 million total vehicles, based on the pricing and share assumptions in the plan. This lower breakeven point (at an adjusted EBIT level) better positions GM to generate positive cash flow and earn an adequate return on capital over the course of a normal business cycle, a requirement set forth by the U.S. Treasury in its March 30 viability plan assessment. GM will lower its breakeven point by cutting its structural costs faster and deeper than had previously been planned: * Manufacturing: Consistent with the mandate to accelerate restructuring, we plan to reduce the total number of assembly, powertrain, and stamping plants in the U.S. from 47 in 2008 to 34 by the end of 2010, a reduction of 28 percent, and to 31 by 2012. This would reflect the acceleration of six plant idling/closures from the February 17 plan, and one additional plant idling. Throughout this transition, GM will continue to implement its flexible global manufacturing strategy (GMS), which allows multiple body styles and architectures to be built in one plant. This enables GM to use its capital more efficiently, increase capacity utilization, and respond more quickly to market shifts. * Employment: U.S. hourly employment levels are projected to be reduced from about 61,000 in 2008 to 40,000 in 2010, a 34 percent reduction, and level off at about 38,000 starting in 2011. This further planned reduction of an additional 7,000 to 8,000 employees from the February 17 Plan is primarily the result of the previously discussed operational efficiencies, nameplate reductions, and plant closings. GM also anticipates a further decline in salaried and executive employment as it continues to assess its structure and execute the Viability Plan. More details will be announced as soon as they are finalized with the various stakeholders. * Labor costs: The Viability Plan assumes a reduction of U.S. hourly labor costs from $7.6 billion in 2008 to $5 billion in 2010, a 34 percent reduction. GM will continue to work with its UAW partners to accomplish this through a reduction in total U.S. hourly employment as well as through modifications in the collective bargaining agreement. As a result of these and other actions, GMNA's structural costs are projected to decline 25 percent, from $30.8 billion in 2008 to $23.2 billion in 2010, a further decline of $1.8 billion by 2010 versus the February 17 Plan. Strengthening GM's balance sheet Another key element of GM's restructuring will be taking the necessary actions to strengthen its balance sheet. GM today took an important step in improving its balance sheet by launching a bond exchange offer for approximately $27 billion of its unsecured public debt. If successful, the bond exchange would result in the conversion of a large majority of this debt to equity. "A stronger balance sheet would free the company to invest in the products and technologies of the future," Henderson said. "It will also help provide stability and security to our customers, our dealers, our employees, and our suppliers." Another important part of improving the balance sheet will be the ongoing discussions with the UAW to modify the terms of the Voluntary Employee Benefit Association (VEBA), and with the U.S. Treasury regarding possible conversion of its debt to equity. The current bond exchange offer is conditioned on the converting to equity of at least 50 percent of GM's outstanding U.S. Treasury debt at June 1, 2009, and at least 50 percent of GM's future financial obligations to the new VEBA. GM expects a debt reduction of at least $20 billion between the two actions. In total, the U.S. Treasury debt conversion, VEBA modification and bond exchange could result in at least $44 billion in debt reduction. Throughout the Plan, GM will continue to make significant investment in future products and new technologies, with an investment of $5.4 billion in 2009, and investments ranging from $5.3 to $6.7 billion from 2010 to 2014. Very importantly, development and testing of the Chevy Volt extended-range electric car remains on track for start of production by the end of 2010 and arrival in Chevrolet dealer showrooms soon thereafter. "The Viability Plan reflects the direction of President Obama and the U.S. Treasury that GM should go further and faster on our restructuring," Henderson said. "We appreciate their support and direction. This stronger, leaner business model will enable GM to keep doing what it does best - provide great new cars, trucks and crossovers to our customers, and continue to develop new advanced propulsion technologies that are vital for our country's economy and environment." # # # About GM - General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 243,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com. Forward-Looking Statements - In this press release and in related comments by our management, our use of the words "plan," "expect," "anticipate," "ensure," "promote," "believe," "improve," "intend," "enable," "continue," "will," "may," "would," "could," "should," "project," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to comply with the requirements of our credit agreement with the U.S. Treasury; our ability to execute the restructuring plans that we have disclosed, our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; the ability of our foreign subsidiaries to restructure and receive financial support from their local governments or other sources; our ability to restore consumers' confidence in our viability and to continue to attract customers, particularly for our new products; our ability to sell, spin-off or phase out some of our brands, to manage the distribution channels for our products, and to complete other planned asset sales; and the overall strength and stability of general economic conditions and of the automotive industry, both in the U.S. and globally.

I didn't notice that anyone mentioned that the Buick Business Concept is a hybrid. See here. (And is it my imagination or do the tires look bigger in the top photo of the story?)

General Motors has unveiled its new Buick "Business" MPV concept in Shanghai, and while details remain scarce as we try to practice our Chinese, we can tell you that while the idea of another Buick minivan may be hard for U.S. audiences to swallow (after the poor sales and driving experience of the Terraza), Buick MPVs do a very solid trade in China as executive transports. Thus, instead of prioritizing sippy cup storage, this is clearly more of a high-roofed luxury limousine. Our compatriots over at Autoblog Chinese (who bring you these images) tell us that this vehicle is the result of a joint-venture between General Motors China and the Pan Asia Technical Automotive Center, as was the 2007 Rivera concept before it. If our Google translator is to be believed, this vehicle is still based on the Buick GL8 (read: Terraza), and the "land-based business class" concept is designed to point the way toward future visions of Buick luxury for customers in the land of the Great Wall. Autoblog -- It's from Autocar. Click here A little chunky looking, at least from this first picture. Better!

Is there something which has happened which makes you feel that they may not have things together? And if there is something amiss, doesn't that responsibility fall either to Susan Docherty or, ultimately, Fritz Henderson?

I don't know what you mean. What do you feel is Buick doing wrong at the moment? They're about to release the new LaCrosse and seem to have some plans to expand the line-up. How, exactly, do they need to get their act together?

Okay, I watched all of it. Who's it supposed to be for? If it's the general public, I can't imagine them watching it. It's very sterile, with no interviewer, just questions on the screen and his responses. No interaction.

LaNeve: "The strategy we laid out for you [in February] is still the strategy . . . Are we working it, tweaking it, examining every aspect of it? Yes, but nothing has changed . . . " So what progress HAVE they made then? Are they just letting "the clock run out" til June 1st? What will Fritz Henderson say at his press conference tomorrow morning?

For what it's worth, Jamie LaReau of Automotive News reported this afternoon a story titled "THE AUTO INDUSTRY BAILOUT: GM to keep GMC, Pontiac; no plans to quicken dealer consolidation" which quotes Mark LaNeve as saying Pontiac and GMC are staying. DETROIT -- A senior General Motors executive today denied reports that President Barack Obama's automotive task force has pressured the automaker to dump GMC and Pontiac. Company sales chief Mark LaNeve also denied rumors that GM plans to terminate the franchise agreements of poorly performing dealers before June 1 to accelerate its dealership consolidation campaign. "The strategy we laid out for you [in February] is still the strategy," LaNeve, GM's vice president of vehicle sales, service and marketing, said today in an interview with Automotive News. "Are we working it, tweaking it, examining every aspect of it? Yes, but nothing has changed with our strategy," he said. Reports that "GMC is going away are just unfounded, unsubstantiated and untrue," LaNeve said. In a Feb. 17 report to the U.S. Treasury Department, GM said it planned to go to market with four core brands: Chevrolet, Cadillac, Buick and GMC. Pontiac would remain as a much smaller brand. GM is trying to sell Hummer, Saab and Saturn. And that is still the plan, LaNeve said. "They're not pressuring us to give up on anything," he said. "Buick and GMC are very profitable brands, and we have plans to make them even more profitable." LaNeve said Pontiac and GMC are staying? Hmm, too bad we don't have it from a reputable source

sabotage verb 1. damage, destroy, wreck, undermine, disable, disrupt, cripple, subvert, incapacitate, vandalize, throw a spanner in the works Brit. (informal) verb 2. disrupt, ruin, wreck, spoil, interrupt, interfere with, obstruct, intrude, crool or cruel Austral. (slang) noun 3. damage, destruction, wrecking, vandalism, deliberate damage noun 4. disruption, ruining, wrecking, spoiling, interference, intrusion, interruption, obstruction from Collins Essential Thesaurus 2nd Edition 2006 © HarperCollins Publishers 2005, 2006

You mean this part? “We are continuing to assess our global operations, brand portfolio and nameplates, and will take further actions to more aggressively restructure our business,” said Renee Rashid-Merem, a GM spokeswoman.