Monday, October 13, 2008

 

GM focusing on merger instead of making decent cars


There were a few minutes there where I really was thinking better thoughts about GM. They are taking the Chevy Volt seriously, which is great, and GM does have some great engineers to work on a project like that.

But then I read about what GM management has been up to. Sure, I can see how diversifying their products by moving GMAC into the sub-prime mortgage lending might have seemed like a good idea at the time, but… it wasn’t. It was a terrible idea. Of course, there are federal bailouts for that kind of problem.

What there aren’t federal bailouts for is bad future plans (though I could be wrong about that, as this Republican administration continues to nationalize industries). And how is this for a bad plan: GM, a company suffering from a product line heavy on gas-guzzling SUV’s and a dealer network that is much too large, is considering merging with Chrysler—another company with an SUV-focused product line-up and way too many dealers.

How in the world does this make sense? It could be that GM is unable to obtain credit, and is after the cash Chrysler may have on hand at the moment. If so, that seems pretty short-sighted, given the long-term costs of completing a merger which is going to create a lot of dislocation and almost total overlap.

And the big loser in this plan (besides, in a few years, GM) will be… Detroit. Chrysler and GM both have large plants, engineering centers, and headquarters in and around the city. Sigh. Once again, being from Detroit is like being in love with someone who hurts you the same way again and again, and each time, somehow, you convince yourself that she will be different.

Comments:
Ha! Despite what the Prof says about his love for Detroit, I know for a fact that even as I type this, he is driving a Toyota. And not just any Toyota, a PRIUS! A car specifically designed to be more efficient and less expensive to drive than a good 'ol 'Merican SUV.
 
GM is out of touch with the world.

My favorite example: taking the CEOs time to create worthless YouTube videos asking for input then turning off the comments section.

http://www.youtube.com/watch?v=NhJ7LXxShCc
 
I don't get these two companies.. Even the sluggish behemoth producing FORD can come up with a few decent hybrids. Chrysler has like NONE and GM has only these huge SUV hybrids. They have a few innovative ones maybe LIke the new Saturn Vue Hybrid.....Try and get one!!! They do not exist. I mean there were two for sale in the entire US last time I checked.

Its just kind of sad, really, and I drive a Chrysler minivan. Its a great van, seriously. Years ago the Big 3 were actually in competition with the Japanese auto makers. Now it is no contest. The game is long over, and Detroit still thinks its half time. I feel bad fro them but then AI saw an interview with that Bob Lutz guy recently... You can just tell the guy is one of those old auto exec dinosaurs... arrogant, defensive, completely delusional that they are gonna "come back" with the Volt. A plug in hybrid is a great idea, but if it were plausible Toyota would have done it by now. There might be a reason they have not tried it yet.
 
strange. perhaps they would benefit from a town hall meeting with americans from all walks of life.

i'm still hopeful regarding the plug in hybrid though.
 
It's true. IPLG saw me in my little Prius yesterday...
 
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