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Decoder ring?
Decoder ring?
I don't need no stinking decoder ring.

As a founding member of Future Fairlane Owners of America (FFOOA), I can assure you I'd rather push a Pinto than drive a G8. Unless, of course, it's really hot or cold, or it's raining.

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Art McDonald
Premier Amateur #518
2008 Dishman Cup
Pivot Cone Snob

Rodney is a waxer (but in a good way)

As long as you can stick to your principles, that's all that matters!


--Donnie

There's an article today in the WSJ about GM planning to possibly dramatically reduce the number of "brands". Here's the link: http://online.wsj.com/article/SB121539865693931653.html?mod=djemTMB

It appears "Cadillac" and "Chevrolet" are considered scared: "Discussions among top executives about the number of brands have intensified in recent weeks, and signal a potential major shift in thinking by the company -- especially by Chief Executive Rick Wagoner. As top executives review future cars and trucks earmarked for various brands, "nothing is off the table," several people said. All but Cadillac and Chevrolet, which GM considers core to its business, are undergoing close scrutiny, other people said.

Another clip: Before GM makes any decisions about its brands, it must stabilize its cash reserves and share price. In the past few weeks, GM stock has tumbled dramatically, falling below $10 a share and hitting lows last seen more than 50 years ago. Its market value has dropped to less than $5.73 billion.

GM has about $24 billion in cash, but it is burning an estimated $3 billion a quarter. Analysts estimate GM needs $10 billion to $15 billion in additional financing to keep going until 2010.

Since May 28th when we last discussed this in the thread, GM stock has fallen 41%. Not to be left behind, Wachovia, the other subject of discussion that day, has fallen 37.5% since May 28th.

In that article there is a chart of market share of GM's brands in 2000 and 2008. Some of the most striking examples (on a percentage change basis) are Pontiac down from 3.5% share to 2.1% (i.e. a 40% decline) and Buick down from 2.3% share to 1.0% (56% decline). I'm thinking Buick is #1 on the chopping block, but I can't imagine them dumping Pontiac.

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Current stable:
2019 BMW M2 Competition slicktop 6MT
2011 BMW M3 sedan slicktop 6MT
2007 BMW 328i wagon (slushbox for now)
1975 CanAm 125MX2

I don't know...it might be bold to car enthusiasts, but the reality is that it might be the kind of thing that could really help bring them back. They could really pump some energy into the marketplace if they did it with some very good marketing and obviously if they chose wisely in which cars to keep from whichever brands get the axe and how they integrate those.

The biggest hurdle might be the way they have their dealer network setup. Aren't there some places where you have a Pontiac/Buick/GMC dealer right down the street from a Chevrolet dealer? Seems like that's the case, though I can't think of examples off the top of my head.


--Donnie

Yep, I can see that. It is exactly "my thinking" expressed above that is probably endemic within GM (i.e. not being able to “imagine” a total and complete overhaul that leaves behind what isn’t working no matter what the history of it in one’s mind).

Turning around IBM took an outsider, Lou Gerstner, with free reign along with explicit "permission" from Tom Watson Jr to "do whatever it takes" to get the company back on track (this is circa 1993). GM is in a much more difficult position with union workers and all, but IBM was literally a short distance from disaster in 1993 given their cash burn rate versus cash inflow.

We can see plenty of entrenched patterns in GM still evident. Hiring a "Gerstner" like figure with total free reign to "do whatever it takes" to put GM on a long-term path to health with zero focus on the "1990's MBA focus on next quarter's earnings" would surely be a great thing for the company (while not seen as great thing for those flushed out the door of course). Imagine the number of mid to very high level managers you would have to dump to "fix" the ingrained issues in that company -- it's a staggering thought, but it's probably the place to start.

_________________
Current stable:
2019 BMW M2 Competition slicktop 6MT
2011 BMW M3 sedan slicktop 6MT
2007 BMW 328i wagon (slushbox for now)
1975 CanAm 125MX2

Of course, they sold 1 million Buicks in China last year, and the market there is growing at 20+% annually, and that has to count for something, especially with a weak dollar.

On the other hand, when I was scarfing up brochures at the new car show held by several new car dealers in front of the Durham Arlan's store in the fall of 1969, I skipped the Buick literature, but made sure I got the Pontiac one with the red GTO on the cover titled "For people who think driving should be fun ..."
Inside it had lots of technical details, including things like the number of main bearing cap bolts, cam specs, clutch disk diameters, and a full listing of transmission and rear-end ratios per model and engine. You could order a GTO or GTO Judge with a 3.90 or 4.33 final drive and a close ratio 4-speed with either the 400 c.i. RAM AIR IV or the 455 c.i. engine. Fascinating stuff for a 10-year-old. Anybody up for a G8 Judge?

So that Donnie won't get all worried about me again, that day I also picked up Ford's "1970 Performace Buyer's Digest"

and a Maverick brochure. I keep them with my 1970 Hot Wheels Annual.

_________________
Art McDonald
Premier Amateur #518
2008 Dishman Cup
Pivot Cone Snob

Rodney is a waxer (but in a good way)

We're the same age Art...I still have all my Hotwheels cars all stuffed into some Hotwheels carrying case.

_________________
Current stable:
2019 BMW M2 Competition slicktop 6MT
2011 BMW M3 sedan slicktop 6MT
2007 BMW 328i wagon (slushbox for now)
1975 CanAm 125MX2

Well at the Cary Auto mall you have a Chevy dealership across the street from a Pontiac/Buick?GMC dealership with a Saturn dealership right next door to the Chevy.
IMHO Saturn and Buick are closest to the executioner, Buick is already down to just 3 models, 2 SUVs and a sedan. Pontiac is likely to survive as the midline brand between Chevy and Caddy.
Another major factor that may result in combining GM brands is a raise in the Cafe limits. GM doesn't have enough high gas milege models that are profitable to build and sell to hold up The gas guzzlers. Hummer has already gotten the axe.

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SPIN or WIN!
there's no glory for going slow.

I could see that. Then you're only taking away one of three in the Buick/Pontiac/GMC thing for those dealers. But I'll still never get why they need GMC and Chevy trucks. I don't suppose it costs them much, but it sure is odd.



I missed that. Hummer is going away? Sweet.


--Donnie

I think it is just up for sale (with no word on any buyer yet -- who would want the thing?).

_________________
Current stable:
2019 BMW M2 Competition slicktop 6MT
2011 BMW M3 sedan slicktop 6MT
2007 BMW 328i wagon (slushbox for now)
1975 CanAm 125MX2

I was just thinking the same thing that Donnnie just said, I guess that happens when you ride all around the country in the same vehicle with someone for several years Anyway, I also don't understand why they need GMC. And, bagging Buick or merging them with another line seems to make sense. Fortunately for GM, they're making Pontiacs less guady than they were in the past. They were pretty bad for a while. I definitely want to see GM survive and would like to start buying cars made in the USA again, so I hope they do whatever it takes for them to survive and thrive.

Anonymous Buick Owner

Donnie could trade the Cayman for Hummer...

AFA GM is concerned there will not be a 2009 Hummer, the dealers have already been notified. They would like to sell the name to someone else obviously, but no matter what there will not be any more rolling off a GM assembly line.
GMC is GMs upscale and large truck line, and has a lot of brand loyalty from people who drive trucks for a living.

_________________
SPIN or WIN!
there's no glory for going slow.

Buy a ZR-1