GM was also dealt a blow last week when its shares hit an 18-year low, the result of reaction to market analysts expressing concern over
the automaker's burn rate, junk borrowing status and $4.7 billion CAD ($4 billion USD) in losses due to reduced market share.
On the positive, the automaker could find itself competitive if it's restructuring plans free up investment capital for new models. GM has had success with recent models, such as its Pontiac Solstice sports car that goes head to head with Mazda's MX-5 Miata. Other new models, which include Chevrolet's Cobalt (and Pontiac's Pursuit), Pontiac's G6 and Buick's Allure and new Lucerne, plus its Chevy
Equinox/Pontiac Torrent duo, show that the automaker can build competitive vehicles that deserve the attention of new vehicle buyers.
Only time will tell if these cost cuts will be enough to clot the financial hemorrhaging, and whether GM will be able to move forward from this restructuring with all brands intact. Analysts have long debated which, if any GM brand should be sold off or simply dropped in order for the automaker to simplify and streamline its production and marketing processes, and eventually achieve profitability. This may or may not need addressing, although it seems that if such drastic action was necessary at all, an announcement would be forthcoming sooner than later.
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| GM has had success with recent models, such as its Pontiac Solstice sports car. (Photo: Trevor Hofmann, Canadian Auto Press) |
On the positive, the automaker could find itself competitive if it's restructuring plans free up investment capital for new models. GM has had success with recent models, such as its Pontiac Solstice sports car that goes head to head with Mazda's MX-5 Miata. Other new models, which include Chevrolet's Cobalt (and Pontiac's Pursuit), Pontiac's G6 and Buick's Allure and new Lucerne, plus its Chevy
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| Vehicles like the Chevy Equinox show that GM can buildcompetitive vehicles that deserve the attention of new vehicle buyers. (Photo: Trevor Hofmann, Canadian Auto Press) |
Only time will tell if these cost cuts will be enough to clot the financial hemorrhaging, and whether GM will be able to move forward from this restructuring with all brands intact. Analysts have long debated which, if any GM brand should be sold off or simply dropped in order for the automaker to simplify and streamline its production and marketing processes, and eventually achieve profitability. This may or may not need addressing, although it seems that if such drastic action was necessary at all, an announcement would be forthcoming sooner than later.
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