Did Anyone Read this Article?

[Chevy454]

I can agree with that, M, but we simply can't compete with the dirt cheap labor and such that other countries provide. I can't remember the exact product, but I saw a study where I *believe* China could pay to import steel from the US, produce the product on their soil, then pay to ship it back to the US for retail, and could still be done cheaper than their US counterpart could do it. Granted, that's not the fault of the foreign producer, so why penalize them, and I can agree with a trim down of the US auto manufacturers (starting at the top)...but is it too late?

[YENKO DEUCE REGISTRY]

China's labor is indeed the cheapest, but several US companies have gone the route of Mexico, Asia, et al, only to find that their best response time, delivery and eventually their ultimate cost is better right here in the US. I know they had to get out from under their Union arangements to enjoy their lower costs, but that's another debate! I don't think it's too late, provided the automakers are committed. They can survive several quarters of losses, that's why the account is called 'Retained Earnings' and it holds all of the non-disbursed income from prior periods.

[70 copo]

Rob,

As I see it we are viewing the result of a convergence of several issues all at once. The first is the recent 5 year market climate at GM which gave up product diversitiy in sales (cars and trucks) for dollars (trucks).

The Chevrolet Motor division almost became a truck and SUV sales company over the past 8 years. Now gas is at record prices and buyers are looking away. As a result GM has been hard at it offering insane rebates to get buyers back. Problem is that the buyers are now trained to wait for the rebates- so they will not buy without steep discounts. The main problem is an aging line of truck bodies which was GM's main line of income generation and a lack of excitement on the sales floor. The current situation was years in the making and is now eating into the bottom line.

This comes at a time when GM is rebuilding and pumping money into its car lines redesigning its cars. The car market is clearly import dominated. The import companies are media savvy, have been for years- and it shows.

Now GM's stock continues to plummet and this causes GM to steal a political buzz word and blame it all on the "rising cost of Health insurance" for its union employees- in order to save face with its stockholders who are also ready to bolt.

With its stock tumbling, GM blaming everybody but its own management for its poor business position, with new cars that are years behind what is now selling, a truck line that is aged and with gas bumping $2.50 a gallon - has now evidently decided to pick a fight with the media in LA, which means the rest of the media will notice GM now as well. It should be no shock to anyone that we are now seeing a steady stream of anti GM articles and will no doubt continue to do so.

The same media that on a good day might like the Corvette but little else GM offers. This is a fatal move for GM.

You can not piss off everybody and still continue to sell vehicles.

I recall well that this is the same company that cut and ran from many of us in 2002, away from the 2+2 rwd market in general and in doing so broke its agreements with the CAW, black listing the Camaro name in the process.

Sales of the SSR are flat. The GTO is flagging. A good Caddy and a great Vette will not save the entire company.

Clearly a band aid approach will not work here. GM is in free fall and has yet to hit bottom.

Phil

[JoeG]

The playing field in the WTO is not exactly level when it comes to some of our "Foreign Friends" we happen to trade with.You can't have two dogs go at it and keep one of the dogs chained.--The chained dog is gonna die. The U.S.A is being chained and asked to fight a battle it cannot win when political decisions are dictating trade policy.---U.S.?--at this rate the last letter will be up for grabs..... web page

[kwhizz]

And what about the entering of the "Litigation" age in America where Lawyers are out to seek every way to "Profit" by suing sucessful American corporations for anything possible.......I call it the "Raping of America".
I could go on and on.........."Sheesh" I hate those guy's
As a Business owner.......nothing is Black and white anymore
Ken

[70 copo]

GM credit now rated as Junk....

http://apnews.myway.com/article/20050505/D89TADPO0.html