Look out, GM

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1,910
Location
Vista, CA
A couple of years ago, Toyota, made more profit than GM while not making as many cars. Last year GM paid its bills and is still floating. Toyota made eleven billion dollars in profit wile building new plants...yiikes. It looks like in the next couple of years Toyota will finally make more cars, and who knows how much more profit. While GM, Ford and D/Chrysler are closing domestic plants, Toyota is building them here, as fast as they can pour the concrete. I know there are issues like health care and retirement burdens, but I didn't think GM would ever get run over, did you?
 
Messages
2,932
Location
Georgia/Retired
I've been reading the business news with regards to GM and it doesn't look good. Don't expect the company to just shut the door one day, but they are in serious trouble. The good news is that they have enough cash on hand to allow them to fix their problems before it gets out of hand. I do expect to see Rick Wagoner shown the door. I wish I could take General Motor's worldwide product line and pick and choose from it to give them their North America products. They build and sell some fascinating vehicles but they simply don't sell them here. I'm a person that actually enjoys the dynamics of driving and pushrod V6's with 4 speed automatic transmissions and fake wood trim just don't stir my driving soul. Neither does a pickup truck or a SUV. What does that leave for me to cross-shop? At this very moment GM does not sell a car in the USA that I would buy for myself. I wonder who sells a twin turbo, 5-passenger sedan with a 6 speed manual transmission and all wheel drive? [Eek!] Gesagt, Getan. Audi
 

LarryL

Thread starter
Messages
1,910
Location
Vista, CA
These two giants from the Orient will also make thing difficult for European manufacturers trying to compete in the US. Honda, Mazda and Nissan are pretty static, but Hyundai is growing and improving at an ever increasing rate that's going to take them straight for the US big three (or should we say, big four, now).
 

ALS

Messages
1,862
Location
Pittsburgh
I see GM downsizing and building new more efficient plants in right-to-work states down south. I wouldn't be surprised in the next five years that Pontiac and Buick are merged into a single car line. John Delorean said it back in the early eighties that GM was in trouble with their top heavy management. No one at GM thought that was their problem. Trying to stay fresh by going with the TREND will always keep you 2 steps behind the leader. GM needs to put out cutting edge designs that offer versions for gas mileage as well as performance. The U.S. auto companies also need to offer a bare bones fuel efficient versions of lower priced cars in their line. I remember the first new car my brother bought when he got of of college. It was 1973 Plymouth Duster slant 6 225ci two door with a 3sp on the tree, bench seat, power steering, power brakes, wind up windows, push down locks and a AM-FM radio with the single speaker. Oh they threw in a front and rear one piece rubber mat in the deal for the floor. $3,000. He drove that car for almost 7 years before the New Hampshire winter and salt got to the body. BTW he is on his second Volvo since 1998 because all the American cars he has owned since then have rusted out within 4 or 5 years. He will never buy another American car while he is living in New Hampshire due to the rust problem.
 
Messages
623
Location
Pullman Wa
GM just has too many car lines, they should simplify and concentrate on quality and build back their business with a better reputation from word of mouth. Car customers who never considered Korean built cars are now buying them.
 

JTK

Messages
13,449
Location
Buffalo, NY
quote:
I didn't think GM would ever get run over, did you?
Most definately. Coming from a town with a huge GM engine plant and Delphi thermal systems, I'm surprized they've hung on this long! GM makes a fine vehicle- just as good as the other domestics. GM's prodcution facilities are also well designed, efficient and productive. They've just been mis-managed for so long it will be tough to get out of the hole now. Joel
 
Messages
623
Location
Pullman Wa
I actually think that "Hyundai" will eventually be a big player in US auto sales. The domestics have a lot to worry about as more and more choices come to the market place.
 
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