SimonDavid

I agree with Angry Dad To survive GM is going to have to get nasty Delphi will either file for chapter 11 or screw the UAW down to wages that are close to what they'd get out of chapter 11 anyway Then GM if it has any brains it will use that as the pattern to beat their UAW members down And if GM don't do that then Kekorian and Jerry York will do it for them - I don't think he just spent a couple of billion to watch it vanish into a chapter 11. Look how hard he went after DCX when he thought they were ripping him off. Interesting how Lutz said he would welcome Jerry York on the board - this guy knows alot about wielding the axe, and Lutz used to work with him....

The last time I checked, America runs a capitalist economy That means that no worker has a right to a job, no salesman has a right to a sale and no company has a right to stay in business People are missing the real issue in this : It's the American consumer who will ultimately determine whether the GM "network" (GM/Delphi/UAW) stays in business. And American consumers have said quite clearly that they will not pay prices that cover that network's cost structure.

1) In answer to Clownzilla, GM's current stake in Suzuki is 20%. So yes they probably don't have the cash to buy it out now, unless they can arrange some kind of share swap. But I thing Wagonner should have raised that stake to 51% years ago instead of messing around with Subaru - GM paid 2 billion in cash for the FHI stake. 2) I doubt that GM are going to close down SAAB. They are in the process of integrating SAAB into Opel - SAABs will be built in Opel factories on Opel platforms (think Golf/A3), so soon it will be physically very difficult to separate it from GM anyway. GM needs a premium brand in Europe - premium is starting to dominate the market here. The 3 series outsells the Ford Mondeo 3 to 1 3) The reason GM is under pressure to bail out Delphi is because under the terms of Delphi's spin off a few years ago GM is still liable for Delphi's pension liabilities if Delphi files for chapter 11 before 2007. So I think it will be a relatively short term bailout. For a company run by accountants GM has done some silly deals.....

I agree with Clownzilla - they should concentrate on Suzuki - I think up their stake to 51% and merge it with Daewoo I think in terms of volume Suzuki is actually number 3 in alot of Asian markets - including Japan - because they are so strong in the small cars that dominate there. With Daewoo's low-cost manufacturing capacity it would be a kller combination.

very good point I hadn't thought of that - GMC is becoming the Buick SUV but where does that leave "Professional Grade"?

I think it looks nice, but it doesn't really look GMC - it looks too feminine / Mercury-ish. GM should have let GMC expand into the butch HUMMER niche instead of acquiring yet another brand

I think alot of this discussion is missing the point. The fact is several hundred thousand people, today, want to buy hybrids. If GM wants a piece of that business they need to supply what the market wants. It doesn't really matter that consumers are misguided, or the technology is just an interim or the real world economy gains are overstated. Most people who buy Corvettes and Hummers don't "need" those vehicles' capabilities either. As for losing money, I sincerely doubt that Toyota is losing money on hybrids. They are developing a new market and take a longer term view of profitability. Remember everyone thought they were losing money on Lexus at first...

If GM "does a FIAT" (ie caves into) CAW then there's no way they'll get concessions from the UAW.... FIAT + CAW + UAW = Chapter 11

I think GM needs to improve their product changeover. They always seem to have this gap where they stock out of the old product before the newone is up to production speed. It's not just a Buick related problem but it is especially strange when - - the Lucerne is based on the same platform as the LeSabre and built in the same plant - there was alot of warning about the changeover and - they cant have been production constrained - why can't they build up stock of the old one bfore changeover?

So is this going to be an Astra clone or isn't it? If it is then that means the current Astra has had a short production run - it was released only last year yet would be replaced in 2008 by a delta based product. I agree that the name Astra sounds better than Ion. Wouyld be better for global production figure bragging rights as well - Astra + Saturn Ion + Zafira may well top Corolla. If it's not then GM still has a way to go to align Saturn and Opel.

Presumably GM raised its stake to 51% just when GM Daewoo is about to turn a profit - so that it could consolidate their production numbers in GM's global total, without having to consolidate their losses as well (and therefore worry the ratings agencies).

I think when Delphi goes into chapter 11 in a couple of months and the UAW's benefits there are slashed in half, the union might wake up and smell the coffee.

I agree with Evok GM made a mistake with Kappa - they built basically a shrunken Corvette, in the process making it inherently unsuitable for anything other than a low volume sports car. They should have built a conventional small RWD platform and used it for, among other things, a competitor for the BMW 1 series, which is selling like hotcakes in Europe. But they do have a platform in the broader group which would make a great 3 series competitor - the Subaru WRX. Not a rebadge like the 9-2X but put an all new body on it and there's your 3 series.

I would have thought self drive would be safer on a freeway at over 60mph - at least then the speed is steady and the traffic flows predictable Anyone who can build a computer system that can drive in peak hour traffic in Rome of Paris without being cut to pieces by kerb jumping maniacs should really be on the Shuttle program Have you ever seen Paris "braille" parking? They physically shove other parked cars up to 4 metres out of the way. There are signs there that actually say leave the handbrake off when parking.