GM's Repeat Plan for Recuperation in the Marketplace

[jww]

So - what are the thoughts on today's announcement of GM to cut costs by letting-go 30,000+ workers? It sounds exactly like the same record we used to hear growing up in St. Catharines whenever they announced a strike or layoffs. We are doing this for the betterment of the company. And then 10 years down the road they do it again!!

Can't think that this is the way to recovery in today's marketplace - shutting down or reducing production in two of the most productive and highest QA rated factories of ANY car maker in North America. Political correctness takes on big-business. GM North America needs to get in touch with it's european cousins - I know this sounds like a broken record, but Vauxhall has been putting out some of the best new cars in the past 2 years - we need the Astra in North America!


http://vauxhall.co.uk/repositories/images/TrimLevel/Astra/9tp48_dmedium.jpg
http://vauxhall.co.uk/repositories/images/TrimLevel/Astra/9tp35_dmedium.jpg
Now there is a car that I can see myself driving - oops I already have as our family in the UK loan us their 5-door hatch whenever we visit. Lucky us when we are in England - too bad we get spoiled and can't have it here as well!
jww

[The General]

I think it is a shame. The bleeding began in the early 90s. I won't go through the list of cars but think about this one:

http://www.tricityreview.com/acqualitycars/dsc00144.jpg

or this one:

http://auto.consumerguide.com/images/autoreview/lrg/95130021990001LRG.jpg

Use your imaginations...

Instead of GM acting on the fact that they were loosing sales to Ford, Toyota and Honda, they decided to continue with the illusion that they were going to be #1 for ever. They refused invest sufficiently in a particular model, they would simply re-badge it 2 or 3 times and hope for the best.

Now, they are reacting because reality has hit them square in the face. They are loosing the war. They survived and lost many battles but this time, they are loosing the war.

They must streamline there models and reduce their overhead by using good, existing models in Europe like jww says.

It may not be too late however they must act smartly.

[jww]

...They must streamline there models and reduce their overhead by using good, existing models in Europe like jww says.

It may not be too late however they must act smartly.
Bring on the Vectra!
http://vauxhall.co.uk/repositories/images/TrimLevel/New%20Vectra/newvectralife_5h_06my-starsilver.jpg
http://vauxhall.co.uk/repositories/images/TrimLevel/New%20Vectra/vectrasri_5e_06my_mistygrey.jpg
jww

[dcaplan]

In another forum I started to discuss the need for fewer models and TRUE choice, citing GM as an example of how NOT to market. The very few responses indicated disagreement with my auto martketing approach. Go to that forum entitled "Dis-incentives..." and then look at what GM Canada admitted in the body of today's announcement - and I quote:
"There are just too many factories with too many people....for us to go on". In other words GM is the prime culprit in flooding the market with too many damn vehicles!! In the long run, false choice costs consumers, employees and GM retirees. And GM should be proud of the mess they've made.

[abzpete]

I'm not sure how GM are doing financially in Europe, but the Astra and Vectra are great looking cars and they're getting pretty good reviews in the UK. I agree, they should be looking to introduce these cars to North America to help change their fortunes.

Pete.

[The General]

I agree, they should be looking to introduce these cars to North America to help change their fortunes.

I have a theory as to why this has not yet happened:

These are not "American" cars. They are European. The USA's, GM's identity will be lost. This would be like shooting yourself in the head. It is self-destruction. At this point though, I think it might be the only way to save what is left of the company.

[jww]

The only current 'world platform' that GM is touting is the one common to the Saab 3 and Malibu/Maxx. The Vectra sits pretty close to the top of vehicle of choice for UK fleet buyers - trust me, the Brits know their fleet buying/leasing well. Only unit that tops the Vectra is the outdated Ford Mondeo (soon to be replaced by a Fusion-like sedan/hatch).

The Astra is getting loads of positive vibes - the new shape and interior style are tops. The only drawback is the way the rear lights impinge slightly on the load bay of the hatchback (not on the estate though).

GM tried to sell euro-cars here before - remember the Opel? Well - that would have been the fore-runner for the Astra two or three decades ago. No question in my mind that the Vectra and Astra would do well here - the only issue would be how they fare in our harsher climate.

GM is trying to tout itself as the world's biggest car manufacturer - well, you win that press battle by actually cross-polinating markets. And by this I don't mean hoping to sell 300-400 Cadillac CTS units in the UK next year because it's a different looking vehicle (Chrysler is trying it with the 300C to mixed reviews - too big, not performance oriented enough and for the same $$ one can get into an Audi, Bimmer or Merc).

One has to ask themselves - when with the US car manufacturer get 'global' and stop thinking in the north-western hemisphere box? American corporate arrogance continues to amaze me - like they are the only kids on the block that matter.

jww

[Pritch]

well I think this is the first nail in their coffin for the NA market at least.

I like the generals idea about it being self destruction if they bring over euro cars...but they have ruined their own reputation, so even rebadging a vauxhaul astra as a new cavalier or whatever will be no use.

I can tell you my two cents. Ive seen this case a dozen times before in school. Im still IN business school and its discussed by all my profs. Its just like air canada, in a way. Not set up to deal with competition who offers a similar or better product for less money. Period

I dont feel sorry for GM at all- they should have known better. How long can you import technology from another company before you realize to start innovating and LEARNING HOW TO BUILD A BETTER CAR on your own?

Know how you can give a man a fish and he'll eat for a day, but teach him to fish and he'll eat forever? Same idea. Copying existing vehicles and platforms teaches a company nothing and will not provide a long term competitive advantage needed to survive.

Personally I think its too late for GM. It will be too expensive for them to make a revovery and their reputation is finished. Theyre the one carmaker that never caught on. So many years of owning the market left them inable to cope. Its like bringing some rich, spoiled kid and making him work for a living.

I wonder how busy GM dealerships are this week......(tumbleweeds)

[The General]

GM tried to sell euro-cars here before - remember the Opel? Well - that would have been the fore-runner for the Astra two or three decades ago.

Do you mean this thing?:
The Opel Kadett
http://members.shaw.ca/Gsi_web/Gsi/06.jpg

Pontiac Lemans
http://viper.dragtimes.com/img/lemans.jpg

Pritch, I also agree with what you say. In the grander scheme of things, it would be sad to see GM to go. Anyhow, I am very convinced that the american government will never let the company shut down. They will loan them money or buy out the company before it goes belly up. And, they will do this before they rebuild New Orleans...

[jww]

The one thing that has always gotten to me about GM is the way they simply refuse to look at the north american market any other way than through a 1970's steel-worker's eyes. You don't take the same cruddy names and try and rebadge - renaming an Astra as the new Cavelier would be absolutely stupid, stupid, stupid; It hardly worked with the Pontiac LeMans or Chevy Monza Spider, and it would hardly work today.

GM needs to rethink what it's about in north america - then go out and do it. There is plenty of history to show how big companies do that - IBM survived the breakup threats of the late 80's by hiring a CEO who had the guts to challenge the status quo in the company (and Gertsner's book is worth reading BTW).

Too late for GM? I hope not - my dad gave his life to Plant 2 in St. Catharines and my older brother to the foundery there as well - both put in more than 30 years each through thick and thin and as a result I have deep family ties to the company. Yet I would never buy one of GM's north american products if they were the last cars available on the planet!

jww

[deeker]

Poor GM, more of what does not work will not work.

It would be a shame to see them dissolve, break up, be sold, or whatever. They have issues to look after.

[Pritch]

General, that Kadett looks just like my old Isuzu I-Mark Turbo (minus all the ghetto bling)- I wonder if they are built (i mean were built) off the same platform?!


Someone mentioned this in another thread but I think Mitsubishi should buy all the GM dealerships and sell their stuff there, if GM doesnt smarten up.

[The General]

Can you imagine how quickly Mitsubishi would shut down :P

Mitsubishi is having a hard enough time selling their cars through their small dealer network.

Oh well...