**ZETA IS BACK ON TRACK** (page 6)**
03-22-2005, 10:30 AM
#42
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Originally Posted by SpeedyV6
There go any hopes of reviving the Buick brand. Sadly Buick's quality has been competitive. All they needed was new product to compete.
I'm afraid this may be the death knell for GM. Their small cars like the Malibu, Cobalt, and the Saturn Ion simply aren't competitive. Honestly i'm not so sure that their trucks are all that much better than a Ford F150, Toyota Tundra, Dodge Ram or Nissan Titan either. GM is between a rock and a hard place right now.
I'm afraid this may be the death knell for GM. Their small cars like the Malibu, Cobalt, and the Saturn Ion simply aren't competitive. Honestly i'm not so sure that their trucks are all that much better than a Ford F150, Toyota Tundra, Dodge Ram or Nissan Titan either. GM is between a rock and a hard place right now.
My thoughts exactly. Buick is a fine example of how a car company that for years have scored well on JD Power's various reliabitlity ratings... The product was just unappealing. All of that shit Lutz was talking about how Buick would be an American Lexus had me
... But look what's come out sense then. And the lineup is still a mess IMHO (I don't see any pseudo SUV-Minivans in it's lineup). I'm 26 yr. old, but I'd consider the Lacrosse if it was a true ES330 compeititor. The fact the the Lucerne is a glorified W-Body with an interior lifted from the DTS (it acutally looks better in the Lucerine IMO) and is FWD doesn't help. And then they put in the 3.8L pushrod as standard when it should have been the 3.6L HFV6! GS competitor my ass. The Malibu is but ugly, and the G6 is a let down. The Cobalt's a good small car. I'd buy it over a Civic or Corolla anyday... but that's about it. The new trucks can't come soon enough for them; but it'll only buy them time. These RWD cars would have been a great step if done correctly. It's funny to me how they justify killing Zeta in the U.S. by saying it'd be a low-volume niche car. Yet the 300 (one damn vehicle)'s sales probably makes Wagoner's mouth water. If the product was actually desirable, and the sales were spread between Pontiac, Chevy, and Buick as was planned, I think there's a case for it. There is a case for it or the bean counters wouldn't have let it come over in the first place! Now they've halted the process because GM's gunshy. They're scared to death. Get Wagoner the fuck out of there. He just wrote Fiat a $2Bil check off some bull! How much more does the Board need to kick his ass out?!
03-22-2005, 10:39 AM
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Originally Posted by DownUnder
They're taking a big risk canceling the Zeta platform and investing their time heavily on trucks and SUV's with the gas prices climbing each year.
03-22-2005, 10:40 AM
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03-22-2005, 10:43 AM
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Originally Posted by lokman
That makes sense to me, but then they had already invested quite a bit to develop the Zeta platform.
Why not just bring the Australian Holden RWD platform over to North America? (Pontiac GTO comes to mind, just bring the other models too.)
Why not just bring the Australian Holden RWD platform over to North America? (Pontiac GTO comes to mind, just bring the other models too.)
03-22-2005, 10:48 AM
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Originally Posted by gavriil
I think that you might as well be the only other user here that's as pissed as I am about this news.
03-22-2005, 10:50 AM
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Originally Posted by lokman
Update from Bob Lutz's blog: http://fastlane.gmblogs.com/archives...ot_the_en.html
Let's paste it here to be clear:
Zeta Not the End of RWD Performance - - By Bob Lutz - - GM Vice Chairman - - Source: gmblogs
Some news broke today about a reshuffling of our product plan, and I just want to clear one thing up before people get carried away.
Yes, we have canceled our plans to build rear-wheel-drive vehicles off the Zeta architecture. But that does not mean we've canceled plans to build rear-drive vehicles altogether.
We did not cancel the Zeta plans to save money, or to divert funds elsewhere that would've been used for product development.
We are simply reallocating resources (human and financial) to pull some other programs ahead and get other vehicles to market sooner. The press speculates this means we're doing it to get our next-generation large SUVs and pickups out sooner. You could see how one might reasonably come to such a conclusion.
Rest assured, we remain committed to developing RWD, premium,
high-performance, affordable vehicles, perhaps even a few with a trace of nostalgia baked in.
Yes, we have canceled our plans to build rear-wheel-drive vehicles off the Zeta architecture. But that does not mean we've canceled plans to build rear-drive vehicles altogether.
We did not cancel the Zeta plans to save money, or to divert funds elsewhere that would've been used for product development.
We are simply reallocating resources (human and financial) to pull some other programs ahead and get other vehicles to market sooner. The press speculates this means we're doing it to get our next-generation large SUVs and pickups out sooner. You could see how one might reasonably come to such a conclusion.
Rest assured, we remain committed to developing RWD, premium,
high-performance, affordable vehicles, perhaps even a few with a trace of nostalgia baked in.
03-22-2005, 10:57 AM
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^ That's hilarious. I guess Lutz has never heard of "No Spin." He said that the press speculated on GM "reallocating resources" to bring the trucks to market sooner, but he didn't deny the charge. And what does he mean "perhaps even a few with a trace of nostaliga backed in?" LOL, history is all they've got right now. You can make a Pontiac or Buick look like a Pontiac or Buick without being retro. I don't care if they use Sigma for Buick, etc., when Sigma II comes out. Just do it. Abandoning RWD cars is shooting themselves in the foot and the head.
03-22-2005, 11:03 AM
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OK. To clear a few things about this thread:
1. Zeta is cancelled for the USA market only for now (it will continue its development in Europe and Australia)
2. FOr vehicles that were based on the Zeta for an 08 release, it is not clear how exactly they will be affected. Either they will be cancelled or delayed to be based on a different RWD platform. Probably the latter. Remember GM still has three other RWD platforms: Kappa, Beta and Sigma.
Lutz above elludes to nostalgia. Could he be referring to the Camaro? I say he's talking about a Buick. We'll all know soon.
1. Zeta is cancelled for the USA market only for now (it will continue its development in Europe and Australia)
2. FOr vehicles that were based on the Zeta for an 08 release, it is not clear how exactly they will be affected. Either they will be cancelled or delayed to be based on a different RWD platform. Probably the latter. Remember GM still has three other RWD platforms: Kappa, Beta and Sigma.
Lutz above elludes to nostalgia. Could he be referring to the Camaro? I say he's talking about a Buick. We'll all know soon.
03-22-2005, 11:06 AM
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Originally Posted by gavriil
Lutz above elludes to nostalgia. Could he be referring to the Camaro? I say he's talking about a Buick. We'll all know soon.
03-22-2005, 01:18 PM
#52
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Originally posted by Bob Lutz
We did not cancel the Zeta plans to save money, or to divert funds elsewhere that would've been used for product development.
We are simply reallocating resources (human and financial) to pull some other programs ahead and get other vehicles to market sooner.
We did not cancel the Zeta plans to save money, or to divert funds elsewhere that would've been used for product development.
We are simply reallocating resources (human and financial) to pull some other programs ahead and get other vehicles to market sooner.
We did not cancel the Zeta plans to save money, or to divert resources elsewhere that would've been used for product development.
We are simply diverting resources to pull some other programs ahead.
Stuff like this erodes Lutz's credibility. :shakehead
03-22-2005, 04:09 PM
#54
if gm declares chapter 11 its nothing but their fault that they were unable to remain competitive. to me, the only gm i would ever consider is a corvette, other than this car any import marque would serve as a better replacement. i don't see what all the fuss is abouy...
03-22-2005, 06:34 PM
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GM Cuts Rear-Drive Sedan Program; White Collars Too? - - By Jim Burt - - Source: The Car Connection
General Motors plans to cut more than 25 percent of its salaried workforce to try and get its headcount in line with its dwindling market share, officials confirmed Monday. Meanwhile, the company also said it was killing a future rear-drive passenger-car line. And CEO Rick Wagoner bought 50,000 shares of GM to show he is putting his money on a turnaround of the world's largest automaker.
Less than a week after GM said that it will severely under-perform the previous earnings guidance it gave last January by 80 percent and that it will show a negative cashflow of $2 billion this year, the company said it killed the "Zeta" architecture, which would have yielded a line of premium rear-drive cars starting in 2007, including a new GTO and the proposed Buick Velite convertible concept.
GM's market share is falling faster than it anticipated and some of its new models are not selling, even with generous rebates. The situation is creating a new reckoning inside GM and a sense of urgency to speed a restructuring of the company. Last week, GM's shares dropped sharply after the earnings warnings. Monday, GM closed up $1.07 to $29.69, but were trading above $37.00 as recently as February 14.
GM is on negative watch by the credit rating agencies, and bond dealers have already begun quoting GM bonds as if they were already junk-rated, a sign that investors expect GM debt to fall below investment grade status. If portfolio managers are forced to dump GM debt, it could severely raise GM's borrowing costs. Nine of 16 major U.S. corporate bond dealers said they were quoting GM's bonds on both a spread basis and a dollar price basis, while the other seven were still quoting the company's bonds on a spread basis only.
In all the bad news, GM got some good news from cross-town rival Chrysler. Chrysler won a concession from the United Auto Workers under which the union will be required to pay annual healthcare deductibles of between $100 and $1,000 for those covered by PPOs. Previously, there were no deductibles. Chrysler had a provision in its contract that allowed for the change if healthcare prices reached a trigger level. GM is expected to try to exact some relief from healthcare costs, as well, especially now that it has committed to cutting its salaried non-union workforce by nearly a third.
General Motors plans to cut more than 25 percent of its salaried workforce to try and get its headcount in line with its dwindling market share, officials confirmed Monday. Meanwhile, the company also said it was killing a future rear-drive passenger-car line. And CEO Rick Wagoner bought 50,000 shares of GM to show he is putting his money on a turnaround of the world's largest automaker.
Less than a week after GM said that it will severely under-perform the previous earnings guidance it gave last January by 80 percent and that it will show a negative cashflow of $2 billion this year, the company said it killed the "Zeta" architecture, which would have yielded a line of premium rear-drive cars starting in 2007, including a new GTO and the proposed Buick Velite convertible concept.
GM's market share is falling faster than it anticipated and some of its new models are not selling, even with generous rebates. The situation is creating a new reckoning inside GM and a sense of urgency to speed a restructuring of the company. Last week, GM's shares dropped sharply after the earnings warnings. Monday, GM closed up $1.07 to $29.69, but were trading above $37.00 as recently as February 14.
GM is on negative watch by the credit rating agencies, and bond dealers have already begun quoting GM bonds as if they were already junk-rated, a sign that investors expect GM debt to fall below investment grade status. If portfolio managers are forced to dump GM debt, it could severely raise GM's borrowing costs. Nine of 16 major U.S. corporate bond dealers said they were quoting GM's bonds on both a spread basis and a dollar price basis, while the other seven were still quoting the company's bonds on a spread basis only.
In all the bad news, GM got some good news from cross-town rival Chrysler. Chrysler won a concession from the United Auto Workers under which the union will be required to pay annual healthcare deductibles of between $100 and $1,000 for those covered by PPOs. Previously, there were no deductibles. Chrysler had a provision in its contract that allowed for the change if healthcare prices reached a trigger level. GM is expected to try to exact some relief from healthcare costs, as well, especially now that it has committed to cutting its salaried non-union workforce by nearly a third.
03-22-2005, 06:53 PM
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Dealers quote GM bonds as if already junk - - Reuters / March 22, 2005 - - Source: Automotive News
NEW YORK -- Dealers have started quoting General Motors bonds as if they were already junk rated, in the latest sign that investors are preparing for the automaker to lose its investment-grade status.
GM bonds have been reeling since Wednesday, when the world's largest automaker slashed its 2005 profit forecast, and Standard & Poor's and Fitch Ratings took initial steps to cut the company's debt ratings to junk. Downgrades from both agencies could force legions of investment-grade portfolio managers to shed GM holdings, punishing the corporate bonds of GM and General Motors Acceptance Corp., its finance arm.
Some investors and dealers are already bracing for the downgrade by quoting GM's bonds in price terms, which is how junk bonds are quoted, rather than in terms of yield relative to Treasuries, which is how investment-grade bonds are quoted.
Nine of 16 major U.S. corporate bond dealers said they were quoting GM's bonds on both a spread basis and a dollar price basis, while the other seven were still quoting the company's bonds on a spread basis only.
"We're seeing the perceived risk profile for these GM bonds shifting from high-grade to high-yield," said Nik Vasilakos, credit analyst at Merganser Capital Management LP in Boston. Merganser owns a small holding of short-dated GM notes.
A spokesman for GM said, "We do not think it's a foregone conclusion that we will be downgraded, but we have taken numerous steps to prepare for a downgrade so that GMAC can continue to operate and deliver sustainable earnings and dividends to GM if we are cut."
But the chance of GM bonds being cut to junk is seen as increasingly high, which may explain why the company's short-term bonds were hit so hard relative to Treasuries on Monday.
Most of GM's short-dated bond prices are significantly higher than the company's long-dated bond prices. But in the worst-case scenario of GM filing for bankruptcy protection, the unsecured bonds would all be worth the same amount of money, because all would have an equal claim on the company's assets.
"It's hard to envision GM filing for bankruptcy with our significant cash and liquidity," the GM spokesman said.
Few investors believe the company will file for bankruptcy protection because it has some $57 billion of cash and marketable securities on its balance sheet and real assets it can sell off in a pinch.
But no matter how unlikely bankruptcy is, given that all obligations would be worth the same amount in a worst-case scenario, it makes sense to see a convergence in prices between higher and lower dollar price bonds, said Darin Feldman, portfolio manager at Aladdin Capital, in Stamford, Connecticut.
Spreads on General Motors Acceptance Corp. notes with a 6.75 percent coupon due 2006 widened an eye-popping 1.05 percentage point to 2.87 percentage point on Monday, or 100.125 cents on the dollar, according to MarketAxess.
Spreads on GMAC's 6.75 percent notes due 2014 widened 0.38 percentage point to 4.08 percentage point, or 87.393 cents on the dollar.
HARD TIMES
GM is wrestling with significant problems. It has high inventories, is losing market share in the key North American market, and faces sky-high pension and health care costs. These factors led the company to warn on Wednesday that 2005 earnings would be as much as 80 percent below its prior forecast.
Standard & Poor's, which rates GM at a step above junk revised the outlook on GM's debt to negative from stable.
Fitch cut GM's debt ratings to a step above junk, and left the outlook at "negative."
GM bonds have been reeling since Wednesday, when the world's largest automaker slashed its 2005 profit forecast, and Standard & Poor's and Fitch Ratings took initial steps to cut the company's debt ratings to junk. Downgrades from both agencies could force legions of investment-grade portfolio managers to shed GM holdings, punishing the corporate bonds of GM and General Motors Acceptance Corp., its finance arm.
Some investors and dealers are already bracing for the downgrade by quoting GM's bonds in price terms, which is how junk bonds are quoted, rather than in terms of yield relative to Treasuries, which is how investment-grade bonds are quoted.
Nine of 16 major U.S. corporate bond dealers said they were quoting GM's bonds on both a spread basis and a dollar price basis, while the other seven were still quoting the company's bonds on a spread basis only.
"We're seeing the perceived risk profile for these GM bonds shifting from high-grade to high-yield," said Nik Vasilakos, credit analyst at Merganser Capital Management LP in Boston. Merganser owns a small holding of short-dated GM notes.
A spokesman for GM said, "We do not think it's a foregone conclusion that we will be downgraded, but we have taken numerous steps to prepare for a downgrade so that GMAC can continue to operate and deliver sustainable earnings and dividends to GM if we are cut."
But the chance of GM bonds being cut to junk is seen as increasingly high, which may explain why the company's short-term bonds were hit so hard relative to Treasuries on Monday.
Most of GM's short-dated bond prices are significantly higher than the company's long-dated bond prices. But in the worst-case scenario of GM filing for bankruptcy protection, the unsecured bonds would all be worth the same amount of money, because all would have an equal claim on the company's assets.
"It's hard to envision GM filing for bankruptcy with our significant cash and liquidity," the GM spokesman said.
Few investors believe the company will file for bankruptcy protection because it has some $57 billion of cash and marketable securities on its balance sheet and real assets it can sell off in a pinch.
But no matter how unlikely bankruptcy is, given that all obligations would be worth the same amount in a worst-case scenario, it makes sense to see a convergence in prices between higher and lower dollar price bonds, said Darin Feldman, portfolio manager at Aladdin Capital, in Stamford, Connecticut.
Spreads on General Motors Acceptance Corp. notes with a 6.75 percent coupon due 2006 widened an eye-popping 1.05 percentage point to 2.87 percentage point on Monday, or 100.125 cents on the dollar, according to MarketAxess.
Spreads on GMAC's 6.75 percent notes due 2014 widened 0.38 percentage point to 4.08 percentage point, or 87.393 cents on the dollar.
HARD TIMES
GM is wrestling with significant problems. It has high inventories, is losing market share in the key North American market, and faces sky-high pension and health care costs. These factors led the company to warn on Wednesday that 2005 earnings would be as much as 80 percent below its prior forecast.
Standard & Poor's, which rates GM at a step above junk revised the outlook on GM's debt to negative from stable.
Fitch cut GM's debt ratings to a step above junk, and left the outlook at "negative."
03-22-2005, 06:53 PM
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GM CEO buys 50,000 of automaker's shares - - Reuters / March 22, 2005 - - Source: Automotive News
DETROIT -- General Motors CEO Rick Wagoner on Monday bought 50,000 shares of the automaker, which has been hit on the stock market after its warning last week of weaker-than-expected profits.
GM said last week that its 2005 earnings will be as much as 80 percent below its previous target, prompting GM's debt ratings to edge closer to "junk" status and its shares to drop to their lowest levels since December 1991.
"This is a personal investment decision for me and it demonstrates my confidence in the long-term prospects for General Motors," Wagoner said in a statement.
GM shares, which last week fell about $5.30 or more than 15 percent, bounced back slightly on Monday to close up $1.07 or 3.74 percent at $29.69 on the New York Stock Exchange.
Shares of the world's largest automaker are still down more than 60 percent since Wagoner took over as its CEO in 2000, however.
GM said last week that its 2005 earnings will be as much as 80 percent below its previous target, prompting GM's debt ratings to edge closer to "junk" status and its shares to drop to their lowest levels since December 1991.
"This is a personal investment decision for me and it demonstrates my confidence in the long-term prospects for General Motors," Wagoner said in a statement.
GM shares, which last week fell about $5.30 or more than 15 percent, bounced back slightly on Monday to close up $1.07 or 3.74 percent at $29.69 on the New York Stock Exchange.
Shares of the world's largest automaker are still down more than 60 percent since Wagoner took over as its CEO in 2000, however.
03-22-2005, 09:46 PM
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Eh... he can afford it. If I were him, I'd do that also, to promote confidence in the company. Alot of people will look at the stock as a deal right now, but with $2 bil in negative cashflow this is no bargain, IMO.
03-22-2005, 11:20 PM
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PR move
03-22-2005, 11:51 PM
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Originally Posted by Ruski
ha! he probably used some internal discount to buy them.
03-23-2005, 08:28 AM
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Lutz above elludes to nostalgia. Could he be referring to the Camaro? I say he's talking about a Buick. We'll all know
soon.[/QUOTE]
Probably not - this is the same "hero" who greenlighted the HHR isn't it- If that is his take a nostalgia, that company is just on the brink of a huge dump, right down the crapper.
soon.[/QUOTE]
Probably not - this is the same "hero" who greenlighted the HHR isn't it- If that is his take a nostalgia, that company is just on the brink of a huge dump, right down the crapper.
03-23-2005, 08:59 AM
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Originally Posted by gavriil
I think that you might as well be the only other user here that's as pissed as I am about this news.
As King of the Castle for 1 day, I would
- Tell Lutz his Copter has been grounded- permanently. Force him and any of his yes man to leave drive the home in either an Aztec( I think they are still in produciton- if not , lots available), or Optra(whatever that rebadged Daewoo is)
- Round up everyone involved with the new Minivans, drive them to a Honda Dealership and make them lick the tires of an Odyssey- then I would shoot three of four of them- Do the same with the Monte Carlo, Lacrosse, Grand Prix, Bonneville, and any other model that is not cutting the mustard
- Find the top union busters in the country and get them work- hard
- Start looking for a real Car guy to head the show
There are so many problems its making me dizzy- I haven't begin to touch hybrid, badge engineering, yada yada yada..So where would you guys start?
03-23-2005, 11:20 AM
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Originally Posted by Steelers Wheels
I with you as well- It's a sad state of affairs- but what would you do if you were given the position for 1 day?
As King of the Castle for 1 day, I would
As King of the Castle for 1 day, I would
But the one thing they need to improve on is product quality and perceived quality.
When you touch a GM car, it should inspire quality. Like a Lexus does or Toyota does. Not like a Chevy does today. Chevy should be BEATING Totyota in quality today.
03-23-2005, 11:52 AM
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OK here are a few things that I would try to embed in the so badly damaged culture within GM. Cos it's always about culture when you're on the top. The top job of a CEO is to change (if needed like in this case) a corporation's culture. They have to STOP thinking the way they are now, because obviously it's not working.
1. STOP ACCEPTING THE FACT OF LOSING MARKET SHARE TO ANYONE!
I mean, these guys have accepted defeat. They are thinking something like: "I know I am gonna bleed, let me see how I can bleed slower". What the fuck kind of thinking is that? You might as well pack it and go home after selling off to Toyota and a few others.
2. ACCEPT THAT YOUR PRODUCT MOSTLY SUCKS. PERIOD!
That's why you're losing share. Others are selling the same category product for more money! and people/the market is still blowing you off and they're buying the competition. Even when the competition is an import during the most patriotic days in this country, possibly ever. So your product sucks.
3. BELIEVE THAT YOU CAN BEAT (NOT JUST MEET) THE COMPETITION!
What? Toyota is smarter than you? They are just more competent because they have better culture! Less politics and they are more focused and patient! They look at product first and the numbers second. GM has the capacity (either with new key mgt, partially, or not) to BEAT Toyota! You cant go out there and say, "ah look at the Lexus GS...let's try and mimick it with the STS and God willing we might come close. And whatever it'll be it'll be". And that's the best they've thought up to now. Scrap that. You have to think like "I AM GOING TO KICK YOUR ASS NO MATTER WHAT IT TAKES NO MATTER HOW HARD I NEED TO WORK NO MATTER WHAT THE FUCK YOU WILL LOSE". Cadillac = BMW? Bullshit! The thinking should be CADILLAC > BMW. Way better!
4. POLITICS IS KILLING YOU.
I am 100% certain that the political bullshit within GM is beyond killing them. IT's dragging them down, it's slowing them down and no one is doing anything about it. Usually such culture is the top mgt's fault. It starts from the top. If top mgt let's it happen then it only grows and eventually it kills the company. I would institute AN ANTI-POLITICS EXECUTIVE VP. Like internal affairs within a police department. He reports directly to the CEO and no one can touch him. He investigates political movement within departments and if he can prove it to the CEO, the CEO acts. With an AXE!
In other words, you Mr VP or Senior VP is doing remotely anything to save your job resulting in harming the compnay's business? You're on probation. You do it again, you're out. No matter how much you've licked the CEO's ass lately.
5. INVEST IN INNOVATION, BUT INNOVATE! PIONEER!
Toyota should not have been the pioneer of Hybrid tech today! It's beyond a pitty and shame to see this nowdays! We've gone to Mars and are the only country which has been to the moon (let alone being there a billion years ago). What is this, Ford licensing hybrid tech from Toyota? That should make GM and Ford feel like they should be working night and day, hungry for battle and surpass that!
Like, without innovation an industry dies, such is the case for a company. Without pioneering a useful tech, the company dies also.
GM is so behind in being able to adapt to change it's shameful. They cant even get a PROPER QUALITY INTERIOR LAYOUT AND SET OF MATERIARLS USED RIGHT! Imaging how impossible it is to INVENT AND REFINE HYBRID TECH or whatever is next!
I would fire all of R&D mgt and most employees and rehire the best. Put them to work and feed them with appropriate amounts of money. But check on them. They dont come up with anything, they go. Or mgt goes. Depending what I see happening.
SOME SPECIFIC ITEMS:
6. IF YOU CANT MEET HP "DEMANDS" WITH PUSHROD ENGINES, DROP THEM!
I mean pushrod technology has its merits, I have defended that tech numerous times, but let's be realistic. HP output is at the top of buyers' list today! You must meet or beat the competition on that respect. You cant come out and call the Malibu an SS model and use 240HP from 3.9 liters. You cant do that! Even my cat knows you're full of shit!
7. ENOUGH WITH LARGE DISPLACEMENT ENGINES ONLY!
Even Audi has gotten the message! YOU MUST SATISFY THE HUNGER/THIRST OF TECH-FASHION-VICTIMS. There's tons out there and they have a lot of influence. You must have a series of engines that are ala-M3 or ala-S2000 type of engine. Very high specific output, normally aspirated, redline at 11K rpm (yes 11K), a lot of (supposed) high tech with appropriately high-tech-sounding acronyms (get your mkg dept to work), etc., etc.
I am not saying cancel the ala-Vette engines, but you have to prove to the market that you can also play the above game. So all schools of thought like you. And no one can take sides. You're GM, you're supposed to be able to play everywhere. Well.
8. NEW GEN. VEHICLES MUST WAIT FOR THE NEW TECH.
Not the other way around. I said this in the Trailblazer SS thread and I will say it again. If the 6 speed auto is not ready, the car goes not get unveiled. Period! You must work as a team. Not as a bunch of small companies within one corporate umbrella! Anyone who does not want to play teamwork, is out, yesterday! There are a billion competent, young, enthusiastic and full of energy people that would love to take a chance. The CEO must be hard as stone and keep firing and hiring by the minute. Let's put it this way: If firing has slowed/stopped and you're not number one, you're wrong. Again!
Back to the topic above. Look at BMW. They do item number 8 best. When the new gen. 3 series comes out, all new major tech comes with it. BUT! Every year, there is a new package of items that is added to the pre-unveiled car to "freshen it up", to make it more desirable AND there is a new iteration of that generation/family of vehicles to keep up the buzz! 2005 the sedan comes out, 2006 the coupe comes out (and it will come out with some new tech which will also be applied to the sedan if appropriate), 2007 the M comes out (kick ass new tech there as well for which the sedan and coupe buyers are longing for but cant have now), 200x the cabrio version comes out, etc. etc.
Which brings me to the next point:
9. TO BE NUMBER ONE IS ONE THING, TO KEEP BEING NUMBER ONE IS TOTALLY DIFFERENT.
And what makes you keep being number one is that after you've reached the top spot, you measure where you want to be with yourself. YOU ARE THE COMPETITION NOW. That way the culture of "never being satisfied no matter how good I am" is cultivated within! That's when mgt gets the big bucks. Bonuses through the roof. Parties at exotic places that no one has ever been before, etc., etc.
There's more but enough for a first try...
1. STOP ACCEPTING THE FACT OF LOSING MARKET SHARE TO ANYONE!
I mean, these guys have accepted defeat. They are thinking something like: "I know I am gonna bleed, let me see how I can bleed slower". What the fuck kind of thinking is that? You might as well pack it and go home after selling off to Toyota and a few others.
2. ACCEPT THAT YOUR PRODUCT MOSTLY SUCKS. PERIOD!
That's why you're losing share. Others are selling the same category product for more money! and people/the market is still blowing you off and they're buying the competition. Even when the competition is an import during the most patriotic days in this country, possibly ever. So your product sucks.
3. BELIEVE THAT YOU CAN BEAT (NOT JUST MEET) THE COMPETITION!
What? Toyota is smarter than you? They are just more competent because they have better culture! Less politics and they are more focused and patient! They look at product first and the numbers second. GM has the capacity (either with new key mgt, partially, or not) to BEAT Toyota! You cant go out there and say, "ah look at the Lexus GS...let's try and mimick it with the STS and God willing we might come close. And whatever it'll be it'll be". And that's the best they've thought up to now. Scrap that. You have to think like "I AM GOING TO KICK YOUR ASS NO MATTER WHAT IT TAKES NO MATTER HOW HARD I NEED TO WORK NO MATTER WHAT THE FUCK YOU WILL LOSE". Cadillac = BMW? Bullshit! The thinking should be CADILLAC > BMW. Way better!
4. POLITICS IS KILLING YOU.
I am 100% certain that the political bullshit within GM is beyond killing them. IT's dragging them down, it's slowing them down and no one is doing anything about it. Usually such culture is the top mgt's fault. It starts from the top. If top mgt let's it happen then it only grows and eventually it kills the company. I would institute AN ANTI-POLITICS EXECUTIVE VP. Like internal affairs within a police department. He reports directly to the CEO and no one can touch him. He investigates political movement within departments and if he can prove it to the CEO, the CEO acts. With an AXE!
In other words, you Mr VP or Senior VP is doing remotely anything to save your job resulting in harming the compnay's business? You're on probation. You do it again, you're out. No matter how much you've licked the CEO's ass lately.
5. INVEST IN INNOVATION, BUT INNOVATE! PIONEER!
Toyota should not have been the pioneer of Hybrid tech today! It's beyond a pitty and shame to see this nowdays! We've gone to Mars and are the only country which has been to the moon (let alone being there a billion years ago). What is this, Ford licensing hybrid tech from Toyota? That should make GM and Ford feel like they should be working night and day, hungry for battle and surpass that!
Like, without innovation an industry dies, such is the case for a company. Without pioneering a useful tech, the company dies also.
GM is so behind in being able to adapt to change it's shameful. They cant even get a PROPER QUALITY INTERIOR LAYOUT AND SET OF MATERIARLS USED RIGHT! Imaging how impossible it is to INVENT AND REFINE HYBRID TECH or whatever is next!
I would fire all of R&D mgt and most employees and rehire the best. Put them to work and feed them with appropriate amounts of money. But check on them. They dont come up with anything, they go. Or mgt goes. Depending what I see happening.
SOME SPECIFIC ITEMS:
6. IF YOU CANT MEET HP "DEMANDS" WITH PUSHROD ENGINES, DROP THEM!
I mean pushrod technology has its merits, I have defended that tech numerous times, but let's be realistic. HP output is at the top of buyers' list today! You must meet or beat the competition on that respect. You cant come out and call the Malibu an SS model and use 240HP from 3.9 liters. You cant do that! Even my cat knows you're full of shit!
7. ENOUGH WITH LARGE DISPLACEMENT ENGINES ONLY!
Even Audi has gotten the message! YOU MUST SATISFY THE HUNGER/THIRST OF TECH-FASHION-VICTIMS. There's tons out there and they have a lot of influence. You must have a series of engines that are ala-M3 or ala-S2000 type of engine. Very high specific output, normally aspirated, redline at 11K rpm (yes 11K), a lot of (supposed) high tech with appropriately high-tech-sounding acronyms (get your mkg dept to work), etc., etc.
I am not saying cancel the ala-Vette engines, but you have to prove to the market that you can also play the above game. So all schools of thought like you. And no one can take sides. You're GM, you're supposed to be able to play everywhere. Well.
8. NEW GEN. VEHICLES MUST WAIT FOR THE NEW TECH.
Not the other way around. I said this in the Trailblazer SS thread and I will say it again. If the 6 speed auto is not ready, the car goes not get unveiled. Period! You must work as a team. Not as a bunch of small companies within one corporate umbrella! Anyone who does not want to play teamwork, is out, yesterday! There are a billion competent, young, enthusiastic and full of energy people that would love to take a chance. The CEO must be hard as stone and keep firing and hiring by the minute. Let's put it this way: If firing has slowed/stopped and you're not number one, you're wrong. Again!
Back to the topic above. Look at BMW. They do item number 8 best. When the new gen. 3 series comes out, all new major tech comes with it. BUT! Every year, there is a new package of items that is added to the pre-unveiled car to "freshen it up", to make it more desirable AND there is a new iteration of that generation/family of vehicles to keep up the buzz! 2005 the sedan comes out, 2006 the coupe comes out (and it will come out with some new tech which will also be applied to the sedan if appropriate), 2007 the M comes out (kick ass new tech there as well for which the sedan and coupe buyers are longing for but cant have now), 200x the cabrio version comes out, etc. etc.
Which brings me to the next point:
9. TO BE NUMBER ONE IS ONE THING, TO KEEP BEING NUMBER ONE IS TOTALLY DIFFERENT.
And what makes you keep being number one is that after you've reached the top spot, you measure where you want to be with yourself. YOU ARE THE COMPETITION NOW. That way the culture of "never being satisfied no matter how good I am" is cultivated within! That's when mgt gets the big bucks. Bonuses through the roof. Parties at exotic places that no one has ever been before, etc., etc.
There's more but enough for a first try...
03-23-2005, 03:12 PM
#68
To gav's list, I would add...
10. CUT MONEY LOSING VENTURES
11. ELIMINATE USE OF OVERPRICED UAW WORKERS
12. INCORPORATE JUST-IN-TIME MANUFACTURING SYSTEM USED BY JAPANESE BRANDS
13. IMPROVE QUALITY ASSURANCE PROCEDURES TO MEET STANDARDS USED BY REST OF WORLD
10. CUT MONEY LOSING VENTURES
11. ELIMINATE USE OF OVERPRICED UAW WORKERS
12. INCORPORATE JUST-IN-TIME MANUFACTURING SYSTEM USED BY JAPANESE BRANDS
13. IMPROVE QUALITY ASSURANCE PROCEDURES TO MEET STANDARDS USED BY REST OF WORLD
03-23-2005, 04:09 PM
#69
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Originally Posted by CGTSX2004
To gav's list, I would add...
10. CUT MONEY LOSING VENTURES
Originally Posted by CGTSX2004
11. ELIMINATE USE OF OVERPRICED UAW WORKERS
Originally Posted by CGTSX2004
12. INCORPORATE JUST-IN-TIME MANUFACTURING SYSTEM USED BY JAPANESE BRANDS
Originally Posted by CGTSX2004
13. IMPROVE QUALITY ASSURANCE PROCEDURES TO MEET STANDARDS USED BY REST OF WORLD
03-23-2005, 04:17 PM
#70
Originally Posted by gavriil
I'd be surprised if any auto manufacturer is not using this process at this point. It's more than 30 years old. The critical item is, how well it's used and how much it has progressed at Toyota as opposed to GM's case.
03-23-2005, 04:25 PM
#72
Originally Posted by Python2121
what impact do unions have on american cars?
edit: and american car companies
edit: and american car companies
Unions also lead to a level of inefficiency because under union regulations, workers must receive a certain amount of rest per number of hours worked and unions can fight to cut hours while pushing for higher wages to allow more union employees to be employed.
03-23-2005, 07:23 PM
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Originally Posted by CGTSX2004
Actually, based on my last visit to GM dealership, they are not using this process. The amount of inventory on the lots is just sickening. If they are working to adapt to this, they are doing it pretty damn slowly. This is a huge area of improvement that could easily cut some massive inventory waste out of their system.
03-23-2005, 07:25 PM
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Originally Posted by Python2121
what impact do unions have on american cars?
edit: and american car companies
edit: and american car companies
A very negative impact.
Though they have some positive impact to socioeconomic factors. And even that can be debated which will end up into a debate between the merits (or not) of socialism vs. capitalism. Long, possibly never endless topic.
The above is a matter of judgment in my opinion. One either gets it or not. It's like Bush vs. Kerry in a way.
03-23-2005, 07:28 PM
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Originally Posted by gavriil
This one is one tough nut to crack. I heard that Chrysler just had some breakthrough with their UAW and that's good news for FOrd and GM cos they will probably ask for the same thing. I dont expect much improvement on this item unless Chapter 11 is entered.
http://www.aiada.org/article.asp?id=35852
03-23-2005, 08:57 PM
#79
Originally Posted by gavriil
Since you stated you visited a dealer, I have to assume that your reference to inventory refers to vehicles. KANBAN (JIT) does not have anything to do with vehicles. It is only relevant to vendor part inventory before assembly.
03-24-2005, 11:30 AM
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Lutz Shoots the Messenger - - Source: The Car Connection
Times are tough at General Motors, but while the automaker had to shell out $2 billion to pay off former partner, Fiat, cancel product and platform programs, idle plants, increase project losses 50-fold and boost incentives to record levels, vice chairman Bob Lutz knows where to point the finger. The former Marine and one-time Chrysler President has been increasingly vocal in his criticism of what he deems unfair media coverage. He told a scrum of reporters that they are promoting "the myth of foreign supremacy" at the expense of domestic brands, unfairly suggesting that GM is in trouble. While Lutz didn't deny that the automaker has some challenges ahead, he insisted they were far less serious than the import-biased press believes. "This is the third or fourth time I've seen this movie, and it gets less scary each time."
Perhaps, but there was no disguising the worried look on the face of Gary Cowger, president of GM's increasingly troubled - er, challenged - North American operations, during the keynote speech opening this year's N.Y. auto show. Cowger didn't go into great detail, though he did make repeated reference to GM's out-of-control health care budget. Crosstown competitor DaimlerChrysler recently won modest concessions from the United Auto Workers, which should trim a bit of cost out of corporate medical bills, but Cowger was notably unclear when he suggested GM had the opportunity to get similar concessions. At one point during his speech, the GM executive suggested that "We need an across-the-board health plan for hourly and salaried workers (alike). That could serve us better."
Facing the likelihood that its first-quarter losses will hit $1.50 a share, 50 times the original, corporate projection, GM is expected to announce sharp cuts in white-collar employment in the coming months. It is trimming production in order to bring inventories into better balance. Slow-selling products such as the GMC Envoy XUV are being dropped, as is the U.S. version of the rear-drive Zeta architecture, which was expected to be used for a wide range of future products.
Considering all the cuts revealed and rumored, might more be coming? When asked if GM might permanently close a plant or drop a brand, Lutz said, "no, nothing planned." Yet earlier in the day, at a press conference sponsored by Morgan Stanley, Lutz said, "Over time if one troubled brand fails to turn around, we would have to take a closer look at phasing it out. We're hoping not to do it."
Meanwhile, Lutz clarified plans to push ahead production of key vehicle lines, starting with the next-generation of GM's full-sized SUVs. They will hit assembly lines late this year and roll into showrooms "by January 1," the GM "car czar" explained, months ahead of original plans. Large crossover models and mid-size SUVs, such as Chevrolet's TrailBlazer will follow soon afterwards.
GM is also rethinking its marketing efforts. It will put more of an emphasis on non-traditional campaigns, such as viral marketing efforts and Internet advertising. Senior executives, such as Lutz and Cowger, have been putting out their own blog, using it to put a different spin on events than the traditional media, and to release news, such as the pricing for the upcoming Pontiac Solstice. Marketing and sales chief Mark LaNeve also told TheCarConnection he plans to pull back on incentives, using them more as a deal closer, rather than a come-on. Instead, GM will trim back prices, especially on future models, to make them more competitive. At least, that's the goal.
Will it all work? Analyst Joe Phillippi is skeptical, and said at the very least, all the current cutbacks will help, "but at a tremendous cost."
Perhaps, but there was no disguising the worried look on the face of Gary Cowger, president of GM's increasingly troubled - er, challenged - North American operations, during the keynote speech opening this year's N.Y. auto show. Cowger didn't go into great detail, though he did make repeated reference to GM's out-of-control health care budget. Crosstown competitor DaimlerChrysler recently won modest concessions from the United Auto Workers, which should trim a bit of cost out of corporate medical bills, but Cowger was notably unclear when he suggested GM had the opportunity to get similar concessions. At one point during his speech, the GM executive suggested that "We need an across-the-board health plan for hourly and salaried workers (alike). That could serve us better."
Facing the likelihood that its first-quarter losses will hit $1.50 a share, 50 times the original, corporate projection, GM is expected to announce sharp cuts in white-collar employment in the coming months. It is trimming production in order to bring inventories into better balance. Slow-selling products such as the GMC Envoy XUV are being dropped, as is the U.S. version of the rear-drive Zeta architecture, which was expected to be used for a wide range of future products.
Considering all the cuts revealed and rumored, might more be coming? When asked if GM might permanently close a plant or drop a brand, Lutz said, "no, nothing planned." Yet earlier in the day, at a press conference sponsored by Morgan Stanley, Lutz said, "Over time if one troubled brand fails to turn around, we would have to take a closer look at phasing it out. We're hoping not to do it."
Meanwhile, Lutz clarified plans to push ahead production of key vehicle lines, starting with the next-generation of GM's full-sized SUVs. They will hit assembly lines late this year and roll into showrooms "by January 1," the GM "car czar" explained, months ahead of original plans. Large crossover models and mid-size SUVs, such as Chevrolet's TrailBlazer will follow soon afterwards.
GM is also rethinking its marketing efforts. It will put more of an emphasis on non-traditional campaigns, such as viral marketing efforts and Internet advertising. Senior executives, such as Lutz and Cowger, have been putting out their own blog, using it to put a different spin on events than the traditional media, and to release news, such as the pricing for the upcoming Pontiac Solstice. Marketing and sales chief Mark LaNeve also told TheCarConnection he plans to pull back on incentives, using them more as a deal closer, rather than a come-on. Instead, GM will trim back prices, especially on future models, to make them more competitive. At least, that's the goal.
Will it all work? Analyst Joe Phillippi is skeptical, and said at the very least, all the current cutbacks will help, "but at a tremendous cost."