2008GSh

Also with Saturn they were setting sales per dealer industry records! With most Saturn dealers selling 3 and 4 times the number of cars as a typical Chevy dealer. And GM not only couldn't figure out why this was, but viewed it as a threat and worked hard to dumb down the Saturn Customer Service experience and starved the upstart division of ANY new product.

I'm of two minds on the Bush 43 bailout of GM. On the one hand it was smart that he put in motion a plan that ultimately saved an industry and almost a million jobs, but on the other, GM's constant mismanagement and totally inept senior management deserved a lot worse than they got.

Stormwind

What is setting off the alarm is that the last time GM pulled out of super bowl and cut ad spending they went bankrupt shortly after that. Now just 1 year after bankruptcy they are again pulling out of super bowl and cutting spending on ads ala Facebook.

To me that is a big red flag showing problems. I am pretty sure right now they are scrambling hard to cut spending and expenses to make the next quarter and fuzzing hard on the balance sheets so the ugly problem does not show it's rear end. But they can only keep the ugly under cover for so long....

Ty419

People have been saying the same thing since the 80's and it never turned out to be true. The cars still have issues holding up over time, and there is no reason to believe that this year is any different. It's a case of buyer-beware and a huge reason why retail customers won't buy GM products. Once ONE vehicle actually lives up to the BS over time, then maybe people will be less skeptical.

Combine that with the employee pricing program, which effectively destroys any potential resale value for retail customers, and it is a financial disaster to pay retail for a GM product, especially expensive ones that have more significant discounts. Not only does the car have questionable quality and reliability, but everyone else paid way less for it. How can a person paying retail expect to have a good experience with a car under those circumstances? It's nearly a guarantee that the car will have higher costs of ownership than comparable products. It's no mystery why GM can't get retail customers to buy their vehicles.

Stormwind

Bankruptcy may be best option for Ally's (aka GMAC) mortgage unit
If you are wondering who the heck is Ally Bank....well they are GMAC. Yes GM's finical division. After the government bailed out GM they also give GMAC $14 billion of our money to squander. With the bailout money they went ahead and changed their name from GMAC to Ally Bank.

Now all of that $14 billion has run dry they are out of money again so they are going to file for bankruptcy while still owing you and I around $12 billion dollars.

Think GM deserves your support? Think again because it's only a matter of time before they (GM) also files for yet another bankruptcy and walk away laughing along with our money.

http://www.reuters.com/article/2012/...84713Y20120508

Trexus

That's a scary thought...

Dave600hL

Ok, I not putting American car companies down, I am putting down "a" company that is being managed badly IMO. I love some of the American muscle cars and have owned some in the past. But, I don't see how continuing to bail them out when they need it will do anyone any good, especially the tax payers.

Big Andy

Looks like GM is just switching its focus to a bigger market:

http://www.bloomberg.com/news/2012-0...ouncement.html

GS430 GUY

GM's looking to shed some pension obligations, considering the pension fund is underfunded to the tune of $25.4 billion now, YIKES!

http://www.businessweek.com/news/201...ar?r=bloomberg

General Motors Co. (GM), the largest U.S. automaker, said it expects to cut its pension obligation by $26 billion by offering lump-sum payments to about 42,000 retirees and shifting its plans to a unit of Prudential Financial Inc. (PRU)

“These actions represent a major step toward our objective of de-risking our pension plans and will further strengthen our balance sheet and give us more financial flexibility,” Dan Ammann, GM’s chief financial officer, said today in a statement.

GM said the moves, which follow Ford Motor Co.’s announcement that it plans to offer lump-sum buyouts, will lead to special charges worth $2.5 billion to $3.5 billion in the second half. The Detroit-based company projects future pension income to be reduced by $200 million annually.

GM’s global pension plans were underfunded by $25.4 billion at the end of 2011, up from $22.2 billion at the end of 2010, according to federal filings. Analysts with credit-rating companies Moody’s Investors Service and Fitch Ratings have said they will evaluate how GM addresses that shortfall as they consider restoring an investment-grade credit rating.

Ford (F) also is offering lump-sum pension payments to about 98,000 U.S. salaried retirees and former employees. The voluntary program is aimed at lowering the company’s $74 billion global pension liability, which was underfunded by $15.4 billion at the end of last year. Ford has not said how much its program may reduce its pension obligation.

mmarshall

I'm not saying that the brand-new Verano will necessarily have Honda/Toyota-like reliability for 200,000 miles....we obviously don't know that. And, believe me, I am well-aware of GM's (and Chrysler's) decades-long history of building junk....I owned some of those 80s-vintage lemons myself. I didn't switch primarily to Japanese-badged cars back then for nothing. But the Verano, like it or not, is a noticeable step-up in (initial) quality and fit/finish from many other GM vehicles....and, yes, other Buicks. Its overall body-structure, interior plastics/trim, drivetrain refinement despite the Ecotec four, and, especially sound-insulation, are all quite impressive.