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GM gashes us again!

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Old 11-28-2018, 10:58 PM
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So GM is laying off about 14,000 workers and closing 5 plants in an effort to control losses. After around 60 billion in bailouts 10 years ago that cost taxpayers 11 billion, it seems like deja vu all over again! I get the propaganda about being accountable to share holders, but how about accountability to the rest of the country. It is astounding that GM is in financial difficulty so soon after all the mea culpa's expressed a decade ago. Unfortunately, lots of working class folks will be taking a beating in the mid west and Canada due to these pending actions. Coincidentally, no plant closings in Mexico or China were announced. So ask yourself before you throw 80k into a new tow rig - do these despots deserve your financial commitment? I for one voted with my wallet in 2008 when I bought a new F-350, and have bought 3 more Ford trucks since. I admired Fomoco for liquidating assets instead of taking a public bailout. I love my C7 ZO6, but really despise the prevailing attitude at GM. Regardless of what the GM spin was back in 2008, they continue to demonstrate the inability to deny short term profit, for long term stability. The president is understandably disappointed, as this will certainly affect the gains he made in those states where GM is a major employer. Gm should reconsider the long term ramifications of this action. You can only cry wolf 20 or 30 times before people get suspicious. Just my 2 cents.
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Old 11-28-2018, 11:16 PM
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So....you think its a better option for GM to keep building cars that dont sell??? So they continue losses until they need another bail out?? Ford has basically nuked almost all of its car production as well,,,
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Old 11-28-2018, 11:24 PM
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It is sad for sure those plant closure. But as a gm dealer, i personnaly sent the question to our dealer communication team as to why, as of today, we have once again, compared to 2008-2009, too many similar carlines and models eating market share from one each other. In canada, they stopped the verano, but kept the regal we don,t sell much, trax and encore, equinox and terrain eaten partially by the new smallest acadia, the envision slipping thru all this and we still have traverse and enclave... i sometimes have no choice to order stuff i dont sell like malibus, impala, and lacrosse.

so some products are not selling much but we as a dealer have to stock them, and gm makes no money on those because of too small volume. If they could stop loosing money on those it would help supporting the hot seller models with even more agressive incentives and marketing! So im glad they just announced to end of impala lacrosse and such, im not happy about plant closure, but that is the downside that comes with this unfortunatly. Supporting the hot models will bring more market share, and more production needed, and more jobs on the mid term...or long term!

but i get the point when looking not too far ahead, on short term, closing plants is sad news.

tomorrow 2 pm i will have a conference call with gm and we will know more about all that!
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Old 11-28-2018, 11:52 PM
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Originally Posted by phragle View Post
So....you think its a better option for GM to keep building cars that dont sell??? So they continue losses until they need another bail out?? Ford has basically nuked almost all of its car production as well,,,
You are making my point. GM needs to produce vehicles that are competitive within a market niche, rather than delaying new model introductions and trying to amortize costs long term on outdated and unpopular vehicles. Ford's market plan although controversial, did not come with plant closings and huge layoffs. Not being a homer, I own two chevs right now, my "98 HD 3500 is a forever truck and owes me nothing. I just do not understand Gm's inability to recognize flawed marketing techniques decade after decade. It seems like they are incorrigible.
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Old 11-29-2018, 07:03 AM
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its simple..you dont design next years car the year before, you design and plan many years ahead. Several years ago when this model year was being planned, the green bubble was in full swing, downsize, economy, alternative energy was all the rage, E85.

I got gas yesterday for $1.99 a gallon, the green bubble burst, so America is back to being America wanting bigger and beefier.
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Old 11-29-2018, 10:39 AM
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SPRSPTR, They have posted $7.5B in profits thru the first 3 quarter's of 2018. How is that just like 10 years ago? They are not asking for a bail out at all based on what I am reading. Where are you seeing that it is 2008/2009 all over again?
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Old 11-29-2018, 11:41 AM
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As I see it the profits are from the tax break and them buying back their stock and such. Just like all the top level money makers, they are going to make them selves more money. Just simple capitalism
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Old 11-29-2018, 01:23 PM
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One characteristic of bad management is to slash R&D for short term profits that makes shareholders happy. Mark Hurd did that to Hewitt-Packard and once the current product cycle fazed out there was only crap left that nobody wanted and the company lost pace and never regained its footing.

From what ive read on the Silverado forums the quality on trucks has been an issue on the 2014+ models, which never wins fans. Sure, you need to keep your thumb on the pulse of the market but if you let the fans coach the game the team will lose every time. Most of their “green” cars missed the target of being anything worthwhile even if gas was $10g.

I have zero pity for GM. I love my 2013 Z71 but I will be looking at other trucks when it’s time.
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Old 11-29-2018, 01:34 PM
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Should have let GM die 10 years ago rather then bail it out..... survival of the fittest apply's to poorly run companies too....
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Old 11-29-2018, 01:39 PM
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Originally Posted by GRH View Post
Should have let GM die 10 years ago rather then bail it out..... survival of the fittest apply's to poorly run companies too....
We sort of interfered with nature with that one. The government shored up the big incompetent guys but did nothing for the people only delaying the inevitable, but that’s a different conversation.
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