smk4565

From January 08 to September 30th 2008, Toyota had $9 billion in net income. They haven't posted their 4th quarter results yet. Even if they just broke even that quarter, they still would have made $9 billion over 2008 (although their fiscal year runs march to march). $9 billion a year still makes them the most profitable automaker by far.

According to their balance sheet, Toyota had $23.5 billion in cash and equivalents in March of 2005, so that is about a $1 billion reduction each year, which is probably not due to operating losses, but rather using that cash for purchasing assets or for other expenses. Toyota stock is up 5% today.

They aren't really suffering, they are the largest automaker in the world and the most profitable auto maker in the world. Their cash reserve has just dropped that is all. They've also been spending a lot on new factories and products; it costs money to grow. They are having a bad year but that is why they kept a big reserve so they could weather a recession without cutting back or delaying anything or taking on more debt.

Not surprising since it doesn't sell. However Cadillac isn't a legit competitor to the Germans without a convertible or without a coupe, and they delayed the CTS coupe another year. So they are now 0 for 2 (Allante and XLR) at going after the Mercedes SL. I have a feeling they won't try a third time, and will keep Cadillac as a producer of $35-50k midsize sedans and Chevy based SUVs.

It takes at least $500 million to make one "gotta have" car, in some cases it is over $1 billion. That is just to design the thing, not market it. If they have 8 brands with 5 models each, that is 40 models (they have over 50 actually), so hypothetically that is around $30 billion to make tightly focused, "gotta have" products. GM doesn't have that kind of money. So it is going to be either 50 mediocre cars that don't sell unless at employee pricing plus, or 25 or so "gotta have" products that will sell. GM is facing a quality or quantity decision, I'd rather have quality.

They are not capable of managing 8 brands, haven't been for the past 20-30 years and won't be in the future. Plus how do you differentiate 5 brands that sell the same style vehicle with similar powertrains at similar price points. So number of brands is the problem. They just killed delayed the CTS coupe another year, and killed the XLR because they have no money. The XLR doesn't sell anyway, but all the imports have coupes, Cadillac does not, the CTS coupe could have helped. But they can't build it because they dumped money on Saturn and Lambda crossovers. There isn't enough money to make all 8 brands (or even 4 brands) competitive. They keep robbing from one brand to pay for another. All GM is doing is trying to manage the downward spiral and slow death. They should dump the Outlook after 09, Astra after 2010, Aura isn't needed after 2010 unless they just do a big fleet dump and Vue and Sky could limp into 2011 if need be and that should be it. Oldsmobile style phase out and good-bye.

Saab is a boutique brand now with 3 models, and they are a money loser and generate nothing in sales volume. GM is facing chapter 7 liquidation if they can't turn the ship around, they should put 90% of their resources into Chevy and Cadillac and hope for survival. If on February 17th the government decides to recall the loan, GM is dead, they have to make drastic changes or they will not see the end of 2009. Cadillac lacks focus, BMW for 50+ years has been know for driving experience and handling, Mercedes for 110 years has been know for engineering and rock solid build quality, etc. Cadillac isn't really known for anything because every 10-15 years they change their mind on what they want to be. They need a consistent product lineup of vehicles that share design and driving dynamics (CTS, DTS and Escalade share nothing as far as driving dynamics).

"people buy the biggest vehicle their gas budget can afford" ??? Is that why Mini sales are rising while large sedans are tanking, why the 3-series is the #1 selling luxury car, why the Lexus RX outsells the bigger Enclave and SRX, why the Prius outsold the entire Buick brand last year. If GM gets back into the "build trucks and full size sedans, because that is what Americans want" they are going to be dead by 2012. And as long as Hummer is around, that will be the poster child for how GM feels about the environment, the Volt will flop if Hummer is still around, because the press and car buying public will see the Volt as a gimmick just so GM can keep selling Hummers and Suburbans that get 12 mpg.

It hasn't made money in the past 19 years, it won't in the next 19. Time to shut it down, give the resources and money to Chevy so they can actually compete with the Fit, Civic and Odyssey and get an Impala that is more like the 2010 Taurus.

GM hasn't made an annual profit since 2004. That is 4 years in a row, going on 5, losing money on every car sold regardless of badge on the front.

G6 is a money loser since it goes to Avis or to people getting $6,000 off sticker. But it is a crappy car that can outsell several of GM's luxury offerings put together. The problem is luxury cars need image and status. GM's brands have lacked focus and Cadillac has lacked the flagship to make them a legit contender. Cadillac for example tries to be like Lexus, Mercedes, BMW, and Lincoln and makes a boaty soft car, a sports sedan, a huge SUV for rappers and athletes, a soon to be soccer mom crossover, etc. They are all over the map and don't do any one thing particularly well that defines their identity. And the money to make that happen doesn't exist, I think Cadillac will continue to decline as long as GM has more than 3 brands. Saab was lost years ago, time to put us out of Saab's misery.

But is it worth the $12-15k price premium over a Prius? The Prius is the green image icon and the 2010 model gets over 50 mpg so while not electric, it still has a low cost of ownership and is seen as environmentally friendly. Plus the "green" crowd tends to not look at domestics very often. The Volt will have a lot of hurdles to overcome.

The tax credit is supposed to be $5,000-7,000 for the Volt. GM was hoping for $7,000, but I don't remember if they got that or if was less. Even with that, the Volt will be $33-35k. Which is pricey since it offers Cobalt like performance and amenities.

Audi uses longitudinally mounted engines in the A4 and A6, that differs from any Acura, Lincoln, Saab, etc, so Audi quattros have about a 55/45 front to rear weight distribution. Not as good as BMW's 50/50, but good enough to get get close in performance, and Audi has been using their interiors and MMI system to attract buyers. They did outsell BMW in Germany and sell 1 million units worldwide in 2008. But Audi just had a big product assault, BMW and Mercedes have theirs coming in 2009-2010, so they may overtake Audi again.

Saab is dead, not only due to low brand awareness, but bad reputation for reliability, and dated product. They will never compete with Audi on interiors, never compete with BMW on performance, never compete with Mercedes on image and engineering, never compete with Lexus on quality/reliability. Cadillac can't even do any of those 4, how on earth will Saab. And front drive cars, even with awd option are never going to stand a chance against the Germans or Infiniti. Look at current front drive luxury cars (over$40k), DTS, 9-5 and S80 are sales dogs, the Acura RL even with AWD only never sold well, and never will, because it can't match the Germans in handling or ride. In today's market, if you have a luxury car (not an entry lux like an ES350, TL or MKZ) that isn't rear wheel drive, you might as well pack up shop and go home.

Wasting Chevrolet's money on Pontiac, Saab, Hummer, etc

I'd like to see Chevy a mid-level and Cadillac, but they might not even be able to afford that. Buick is the logical fit in between, but their image is badly damaged. Cadillac is facing a 2011-2012 where the CTS is their only sedan, and SRX and Escalade are their SUV offerings, thus they'll be forced to take an Epsilon II car and turn it into a Cadillac so the dealers have something to sell. Cadillac is in deep trouble, without a huge injection of funds, to develop 2-3 all new platforms, all new engines and 8-speed transmission.

I just read the Alpha based Cadillac has been delayed 2 years to end of 2014 because of GM's finances. Conversely, BMW is already working on the new 3-series that comes out in 2012. Cadillac can't compete with BMW without money, and Chevy can't compete with Honda and Toyota without money, I am almost to the point that I think GM should become a 2 brand company.

GM hasn't made money since 2004, the current structure and strategy are not working. They didn't make money when the market had 17 million sales, now that it is 10 million sales a year, they could be dead within 2 years unless they take action.

No one wants to buy Saab, and if they stood as their own company they would be in Chapter 7 bankruptcy within 2 months. This is GM making it look like they are trying to change, so they can ask for more government bailout money in March. Otherwise, GM themselves will be filing for bankruptcy.

Notice you put both in past tense. Has made and have made money, but not making money now. GM needs to quit making decisions on the past and do what is right for the future. Pontiac and Hummer are the past, Saab and Saturn are failed experiments, all should go.

Another example of how broke GM is right now. This is why for years I have said they can't have 8 brands. When they have to cut back on a Cadillac or a Chevy in order to build yet another full size truck/suv or another rental feet sedan, something is wrong. The money being wasted on Hummer could build this car, the money wasted on Saab could build a Civic rivaling car, etc.

And Silverados, Tahoes, Acadais aren't going to sell in Europe or Japan, so they need to do more than one thing well, or they'll keep facing shrinking sales here, and struggle abroad.

VW Polo gets 60, BMW 116d gets 52, Prius 46, new Prius 50, Insight probably 50 mpg. It goes beyond Japan, but Europe also. Consumers in those countries expect 35 mpg out of a midsize, and 45-50 in small cars. The cars GM sells here are guzzlers compared to what is sold there, and GM doesn't have a car like the Ford Fiesta yet. GM does big cars and suvs well, but not small stuff, and the 2nd and 3rd world countries are driven by small cars, that is why VW is going to be the #1 automaker in the world by 2015.

2,000 to 4,000 isn't anything to brag about. Toyota sells over 1,000 Camrys per day here. GM need smaller, more fuel efficient, higher quality product if they want to compete overseas. Small cars with 45-50 mpg, not 35, CTS build quality in Aveo to Cobalt sized cars, Malibu LTZ or better interior in a compact, etc.