[Timgt5]

For those of you who keep up with the world of autos, GM just released its viability plan as a condition to receive further aid from congress.

some cost cutting highlights include:

Saturn Closure of the brand by 2011

Pontiac removed as a stand-alone division with some of the models being transfered to other lines.

Hummer will go up for sale by the first half of this year

Saab is in limbo, if the Swedish government is unwilling to offer financial aid GM will revert Saab back to being an independent company.

Saturn dealers are going to be meeting to see if they can sell the franchise to another manufacturer. For those of you who have Saturn cars, you may want to consider selling or trading them right away. It is likely that in the next couple of months the resale value of all Saturns will plummet. If you want or have to keep your Saturn, GM will likely extend any outstanding warranties as they did with Oldsmobile several years back when it was shuttered.

Thousands of jobs will be reduced through layoffs and attrition. This going to be very painful, but the UAW realizes finally that sacrifices have to be made if the company is to survive the current economic crisis. GM is now building some really great cars, and it just needs time for the economy to improve so that buyers will return to the showrooms to check them out.

[kebsfroggy]

Originally Posted by Timgt5

Thousands of jobs will be reduced through layoffs and attrition. This going to be very painful, but the UAW realizes finally that sacrifices have to be made if the company is to survive the current economic crisis. GM is now building some really great cars, and it just needs time for the economy to improve so that buyers will return to the showrooms to check them out.

I'm glad the UAW finally that it too has to make sacrifices. In some ways they were actually part of the problem. Mind you, I'm all for unions. At some point however, the UAW tipped the scale so much in their favor that they became a part of GM's (and all auto mfg.) problem.

I am beginning to see more Chevy SUVs (I think) on the road. I happen to live in an area filled with Jags, Mercedes,BMWs, Lexus,etc. So seeing more GM cars is actually encouraging.

Thanks for the info.

[Brian37]

file bankruptcy, get out from under UAW pensions, start over

the only way I see them surviving

[kebsfroggy]

Originally Posted by Brian37

file bankruptcy, get out from under UAW pensions, start over

the only way I see them surviving

You are right to some extent. Unfortunately if the auto makers declare bankruptcy (would wipe out the dept to start over) they would take an unknown number of other companies with them.

The companies that supply parts and supplies would be in jeopardy. Mfg would not have to pay what is owed or only part. Without the income from the car makers they will sink right along with them.

Then the ripple effect would continue down the food chain, so to speak.

[Timgt5]

There is a lot of debate on the whole Union thing. One critical thing that will have to happen is that labor cost per car is going to have to come down to match that of Honda and Toyota, the Unions and Management will either have to work this out or the Unions will have to go. Of all the costs that go into manufacturing a car labor is the one that is easiest to control.

The reason this is so critical is that if the Big Three hope to completly match or exceed Japanese engineering and quality at every level for the same price and still make a profit off of every car then something has got to give.

GM and Ford have made great strides in the last 3 years and the coming products from Ford look very strong. I would say at most levels they are 8-9/10ths there. The big weakness is in the entry level market, where "Toyondamazda etc.." still hold a big engineering and quaility advantage. Neither Ford, GM or Chrysler have an effective answer to the Fit, the Civic, the Mazda3 or the Corolla.

[Timgt5]

Originally Posted by Brian37

file bankruptcy, get out from under UAW pensions, start over

the only way I see them surviving

Saab, the Swedish subsiduary of GM, filed for the equivilant of chapter 11 in Sweden yesturday.