Why GM is struggling?

McRat

Diesel Hotrodder
Aug 2, 2006
11,249
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38
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Norco CA
www.mcratracing.com
Here's a letter I received from GM.

Imagine how much it cost to engineer and develop all of this, much of it per government mandate:

Dear Patrick,

Thank you for being a GM customer. There's been a lot of discussion about the auto industry over the past few weeks, and I want to make sure you know the facts about GM. This is important because with all the media coverage of late about our company and industry, it is evident that there is much misinformation and many very dated perceptions being communicated. The truth and the facts are always helpful. First, we're building our best cars and trucks ever, and we're committed to being the best car company on the planet.

Take a closer look at Chevrolet, Buick, Pontiac, GMC, Saturn, HUMMER, Saab and Cadillac. You'll be surprised.

Our vehicles are more fuel efficient.
19 of our 2009 models have an EPA estimated 30 MPG highway or better — more than Toyota, more than Honda

For 2009, we offer more hybrid choices than any other manufacturer. We currently have six hybrids, by mid-2009 we will introduce three more, and by 2012 we will offer 15 hybrid models

11 of our last 13 new-product introductions have been fuel-efficient cars or crossovers. This trend will continue with 22 of our next 24 new-product introductions
Higher quality.
We back our quality with the Best Coverage in America:
A 100,000-Mile/5-Year Transferable Powertrain Limited Warranty.1 Plus, Roadside Assistance1 and Courtesy Transportation Programs.1 This coverage is superior to Toyota, Honda, Nissan and Ford. We believe in our quality and reliability, and we back it up!

The 2008 Chevy Malibu and Chevy Silverado were the "Highest Ranked Midsize Car and Large Pickup in Initial Quality" according to J.D. Power and Associates2
Safe.
37 of our 2009 models have five-star frontal crash safety ratings3

We offer the safety and security of OnStar,4 including Automatic Crash Response,5 OnStar Vehicle Diagnostics6 and Turn-by-Turn Navigation.7 Not Honda. Not Toyota. Not Ford. Not Chrysler. Not Nissan. Not Dodge
The proof is on the road today.

Chevy
The Cobalt XFE offers an EPA estimated 37 MPG highway. More than Toyota Corolla or Honda Civic DX8

The Malibu offers an EPA estimated 33 MPG highway, which is better than Toyota Camry LE or Honda Accord9

The Traverse offers the best highway fuel economy of any eight-passenger crossover,10 an EPA estimated 24 MPG highway. It has more interior space than Honda Pilot or Toyota Highlander

The Silverado is Car and Driver's Best Pickup 2 years running.11
The Silverado XFE offers an EPA estimated 21 MPG highway. No other large pickup beats it. Not Ford. Not Dodge. Nobody.12
Buick • Pontiac • GMC
The eight-passenger Buick Enclave crossover is quieter than
Lexus RX 350.13 And with an EPA estimated 24 MPG highway, it gets better highway gas mileage than Lexus RX 350 and Acura MDX14

The Pontiac G5 XFE offers an EPA estimated 37 MPG highway. More than Toyota Corolla or Honda Civic DX8

The GMC Sierra XFE offers an EPA estimated 21 MPG highway. No other large pickup offers better highway mileage. Not Toyota. Nobody.15
Saturn
The AURA midsize sedan offers best-in-class16 highway fuel economy. Its EPA estimated 33 MPG highway beats Toyota Camry LE and Honda Accord17

The VUE Hybrid has the best highway fuel economy in its segment:18 an EPA estimated 32 MPG
Cadillac • Saab • HUMMER
The Cadillac CTS is a 2009 "Best Resale Value" Award winner from Kelley Blue Book's kbb.com.19 It is one of Car and Driver's 2009 10Best. And it was also selected a top safety pick by the Insurance Institute for Highway Safety20

The Cadillac Escalade Hybrid eight-passenger luxury SUV offers an EPA estimated 20 MPG city. Better than a 2008 MINI Cooper S Convertible with automatic transmission21

The Saab 9-3 Sport Sedan, SportCombi and Convertible have earned the 2009 Insurance Institute for Highway Safety's "Top Safety Pick" award in the midsize category for the third straight year22

The HUMMER H3 has a lower annual fuel cost than Nissan Pathfinder23
And our future looks even brighter.
The upcoming Chevy Volt (expected launch date late 2010) represents a fundamental reinvention of the American automobile industry. The Volt will deliver up to 40 miles24 on a single electrical charge, well within the daily commute of nearly 80% of Americans. It represents a giant step toward energy independence

GM will also continue to invest in hydrogen fuel cell technology, which is capable of reducing automobile tailpipe emissions to non-polluting water vapor. Already, GM has deployed 90 Chevy Equinox compact SUVs to people in what constitutes the world's largest market test fleet of hydrogen fuel cell vehicles
All made by GM. Surprised?

Here's something else amazing: the Red Tag Sales Event,25 which continues through January 5, 2009. The price on the tag is the price you pay. See some red, save some green.

It's a smart time to buy GM. Visit gm.com for more surprising reasons why.

Sincerely,



Mark LaNeve
 

MaxFarmer

<--Heavy Smoker
Jan 22, 2007
1,251
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Albion, Nebraska
Man, I wish I kept the email Larry sent me the other day listing how hard some of those workers are working....The workers union has GM (and all others) strapped pretty good right now!
 

fajitatone

Almost Stock
Jul 6, 2007
736
15
18
WA
www.fajita.net
Too many product lines, That's why GM is struggling. Saturn is it's own thing, but kill Buick and Pontiac. Make ALL trucks GMC, all passenger cars/crossovers Chevrolet, and all luxury cars Cadillac. You want a Pontiac GTO, sell it in the Chevy dealership, you want a Buick Electra 225, sell it at the Chevy dealer. Too much ovelap. They finally killed Oldsmobile. Keep up that stradegy, it works.


That's my .$02

:D
 
Dec 2, 2006
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TN
Too many product lines, That's why GM is struggling. Saturn is it's own thing, but kill Buick and Pontiac. Make ALL trucks GMC, all passenger cars/crossovers Chevrolet, and all luxury cars Cadillac. You want a Pontiac GTO, sell it in the Chevy dealership, you want a Buick Electra 225, sell it at the Chevy dealer. Too much ovelap. They finally killed Oldsmobile. Keep up that stradegy, it works.


That's my .$02

:D

Disagree. Chevy Truck's would be the last thing GM cuts...:D
 

BoiseRob

Active member
Oct 12, 2007
392
45
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Too many product lines, That's why GM is struggling. Saturn is it's own thing, but kill Buick and Pontiac. Make ALL trucks GMC, all passenger cars/crossovers Chevrolet, and all luxury cars Cadillac. You want a Pontiac GTO, sell it in the Chevy dealership, you want a Buick Electra 225, sell it at the Chevy dealer. Too much ovelap. They finally killed Oldsmobile. Keep up that stradegy, it works.

It would make more sense to drop GMC. The three brands would be Cadillac, Chevrolet & Saturn. GMC no longer makes medium or heavy duty trucks so why keep it...

My .02

Rob
 

fajitatone

Almost Stock
Jul 6, 2007
736
15
18
WA
www.fajita.net
Fine, drop GMC, but shrink the product line and keep profits up. Databases will become smaller too, one part, one part number instead of one part, 5 part numbers.

:)
 
Dec 2, 2006
1,696
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TN
FWIW...

Current Pickup Sales of 2008:

Chevy: 370,502

GMC: 133,811

It still love both, being their both GM. I would hate to see either one of them go :(
 

McRat

Diesel Hotrodder
Aug 2, 2006
11,249
26
38
64
Norco CA
www.mcratracing.com
Realistically, it will take at least 5 years to "debrand" GM. They have contracts with the dealerships, so if the dealership is still profitable, it could cost $$$ to drop them.

GM started in the 1970's to get ready for debranding by doing a Corporate Powertrain system where Pontiac, Buick, Olds, GMC, started shutting down their engine factories.
 

Redbone

but this one goes to 11
May 1, 2008
261
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Indy, IN
I've wondered if it wouldn't behoove GM to buy out the "problem" dealers and make them company stores. Lotta times the rogue dealers really hurt the image of the manufacturer.

This has been a trend in the heavy construction equipment over the last 5-10 years.
 

TannerJP

Trying to blow stuff up.
Dec 4, 2008
42
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Houston, Tx
I don't think the split is really costing them much. It's probably making them some money. Pontiac caters to agressive styled sporty lookin cars. Saturn caters to the greenies. Chevrolet caters to the fleet and classic design and Cadillac to the upscale, stylish (sometimes) with creature comforts.

Chevrolet trucks are usually more likely to be fleet/work vehicles than GMC's. GMC is 'professional grade' with some additional towing gadgets and creature comforts.

Sure they could merge them and call all the pontiacs chevrolets, but they still have to build that style to get that market. It's pretty smooth now that so many cars from GM are actually the same car across brands. The only things that are differently usually are the bumpers and the branding and maybe the front fenders....
 

UNBROKEN

New member
Mar 30, 2008
565
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Drop Ford completely and GM and Chrysler will do much better, so would we :D

Ford is the most healthy of the Big3...they even declined to take the gov. loans.
Things are far from perfect for them....but they'll be the last to go if the unthinkable happens.
 
Mar 27, 2008
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Sheridan, IN.
Something I don't understand is in the 80's body part were all interchangeable from GMC to chevy trucks 1500's-3500's now they have to have two different machine to stamp out the fenders for the chevy and the GMC, it was just different grilles. they should go back to this concept. Ford really screwed up having a totally different truck from the 150 to the 250,and 350.
 
Dec 2, 2006
1,696
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TN
Something I don't understand is in the 80's body part were all interchangeable from GMC to chevy trucks 1500's-3500's now they have to have two different machine to stamp out the fenders for the chevy and the GMC, it was just different grilles. they should go back to this concept. Ford really screwed up having a totally different truck from the 150 to the 250,and 350.


Ford has screwed up alot! :rofl:

As for the body styles. I love the 01 & 02 HD Chevy's myself. But, I have to say the "Classic" HD series is my favorite. :)