: Well, here's the plan from GM:

The Tony Show
12-02-08, 07:45 PM
GM's plan, as presented to Congress today. The highlights:

Product Portfolio and Fuel Efficiency – GM has made significant progress in revamping its product lineup, with new GM cars like the Chevy Malibu, Cadillac CTS, Saturn Aura and Opel/Vauxhall Insignia earning car of the year awards.While remaining a full-line manufacturer, GM will substantially change its product mix over the next four years, and launch predominately high mileage, energy-efficient cars and crossovers.

In addition, the Chevy Volt, which can travel up to 40 miles on electricity alone, is scheduled for production in 2010, and GM is planning other vehicles using Volt’s extended-range electric drivetrain. By 2012, more than half of GM vehicles will be flex-fuel capable, and the company will offer 15 hybrid models. GM will continue development of hydrogen fuel cell technology, which, when commercially deployed, will reduce automotive emissions to just water vapor.

During the 2009-12 plan window, GM will invest approximately $2.9 billion in alternative fuels and advanced propulsion technologies, which offer fuel economy improvements ranging from 12 percent to 120 percent, compared with conventional gas engines. As a result, we expect GM to become a significant creator of green jobs in the United States, as well helping suppliers and dealers transform the U.S. economy.

Market and Retail Operations – In the U.S., GM will focus its product development and marketing efforts on four core brands – Chevrolet, Cadillac, Buick and GMC. Pontiac will be a specialty brand with reduced product offerings within the Buick-Pontiac-GMC channel. Hummer has recently been put under strategic review, which includes the possible sale of the brand, and GM will immediately undertake a global strategic review of the Saab brand. As part of the plan, the company also will accelerate discussions with the Saturn retailers, consistent with their unique relationship, to explore alternatives for the Saturn brand.

Manufacturing and Structural Costs – GM will accelerate its current efforts to reduce manufacturing and structural costs, building on significant progress made over the past several years. GM currently has the most productive assembly plants in 11 of the 20 product segments measured by the Harbour Report, and it is a global leader in workplace safety. With the recently negotiated wage rates, turnover expected in our workforce, planned assembly plant consolidations, further productivity improvements in the plan, and additional changes to be negotiated, GM's wages and benefits for both current workers and new hires will be fully competitive with Toyota by 2012.

Balance Sheet Restructuring – Under the plan, GM would significantly reduce the debt currently carried on its balance sheet. GM plans to engage current lenders, bond holders and its unions to negotiate the needed changes. GM’s plan would preserve the status of existing trade creditors and honor all outstanding warranty obligations to both dealers and consumers, in the U.S. and globally.

Compensation and Dividends – The plan calls for shared sacrifice, including further reduction in the number of executives and total compensation paid to senior leadership. For example, the chairman and CEO will reduce his salary to $1 per year. The plan also requires further changes in existing labor agreements, including job security provisions, paid time-off, and post-retirement health-care obligations. The common stock dividend will remain suspended during the life of the loans.

Sounds like a lot of the things people here have suggested. Thoughts?

12-02-08, 08:58 PM
I suspect that the UAW will not hand over anything until they are forced to. Gettelfinger already said that (in slightly different terms).

12-02-08, 09:24 PM
I suspect that the UAW will not hand over anything until they are forced to. Gettelfinger already said that (in slightly different terms).

That's why they need to file -- and then do what they listed above.

I think the Pontiac plans are right on target, also. They don't need to lose the brand, but they also don't need to have 10 models, either.

The GMC thing perplexes me -- but if they stay high end consumer and heavy duty commercial -- maybe it will work...

12-02-08, 10:45 PM
UAW = death knell


12-03-08, 05:58 AM
They need to keep Saturn; they finally have some good stuff (and getting better all the time). Pontiac should have the overhaul (like Cadillacs did 5 years ago); they need to be top notch vehicles for them to survive. I'd hate to see GMC go but they are almost a complete redundancy of Chevrolet truck. The Union, well that's been a stumbling block all along (in my opinion) along with some poor management decisions and the economy (of late). Hang on boys, it's going to be a bumpy ride.

DopeStar 156
12-03-08, 09:27 AM
I think Pontiac should stick to their performance models and just be focused on as the speed department amongst GM's family of names. Chevrolet as the standard, GMC for trucks, Cadillac for high luxury, Buick for entry level luxury, Pontiac for performance, and Saturn for the import buyers. Sell off Hummer because no one's looking for anything like that now and I think the bulk of the hybrid models should be among the Chevy and Saturn nameplates. I think we all tend to forget that GM has been around for over 100 years and survived one economic depression already. They know what they're doing and I'm more than confident they'll bounce back......

The Tony Show
12-03-08, 09:42 AM
I read most of the plan in its entirety last night, and it's a pretty good one. Here's a slightly more detailed section explaining the paring down of brands and nameplates:

6.1 Marketing and Retail Operations—Today, General Motors competes in the United States with 8 brands. Chevrolet, Cadillac, Buick, and GMC represent the company‘s core brands, accounting for 83% of current sales. The company will focus substantially all of its product development and marketing resources in support of these brands. This will result in improvements in awareness, sales, and customer satisfaction for these 4 core brands.

Significant efforts have been expended to combine the Buick, Pontiac and GMC (BPG) brands into a single dealer distribution network, with approximately 80% of these brands‘ combined sales sold through BPG-branded stores. This channel will be fully competitive in terms of total entries offered, with Pontiac serving as a specialty/niche brand with reduced product offerings solely intended to complement Buick and GMC models and reinforce the channel as a whole.

Hummer has recently been put under strategic review, which includes the possible sale of the brand. GM will also immediately undertake and expedite a strategic review of the Saab brand globally. Finally, Saturn, which has performed below expectations, has a unique franchise agreement and operating structure. As part of the Plan, the company will accelerate discussions with Saturn retailers and explore alternatives for the Saturn brand.

As indicated in Table 5, the Plan focuses the company‘s resources in the U.S. around a smaller, more profitable set of nameplates (40 by 2012) with further consolidations in GM‘s dealer network planned to get to a more profitable and stronger dealer network.

As indicated, the number of GM retailers is expected to decline to 4,700 by 2012. This will occur primarily in metropolitan and suburban areas where GM has too many dealers to serve the market. In the Plan, it is projected these dealers will be reduced by 35%, increasing annual throughput for the remaining outlets to a more competitive level with other high-volume manufacturers.

GM‘s distribution strength in rural areas, which is a significant competitive advantage, will be largely preserved. GM intends to have the right number of brands, sold by the right number of dealers, in the right locations to obtain maximum profitability for GM and the retailer network.

Lord Cadillac
12-03-08, 12:07 PM
If Pontiac doesn't overlap with Chevy AT ALL, than keeping Pontiac around can work. However, Chevy will need to make their trucks and SUVs CHEAPER than they already are (good idea, huh?) if GMC is going to stick around. And Cadillac is going to have to make BETTER SUVs if the high-end GMC SUVs (Denali) are still around.

Chevrolet Tahoe, GMC Yukon (Denali), Cadillac Escalade... I think the GMC should be out of the picture.

The Tony Show
12-03-08, 01:00 PM
If I were running things, this plan would include deleting the Chevrolet trucks that overlap with GMC. Keep the HHR and Traverse, but get rid of the Silverado and Tahoe, and instead offer a lower trim level GMC Sierra and Denali at the old Chevy price point to replace them.

12-03-08, 02:26 PM
I'm thinking the Silverado and Tahoe outsell the Sierra and Yukon. :coffee:

The Tony Show
12-03-08, 02:42 PM
I think so too, but I'm just basing this on the plan they've laid out that includes keeping GMC. Perhaps GMC should become more true to its name and only sell "Professional Grade" trucks (such as big Diesels or work trucks) and leave the consumer grade products to Chevrolet?