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Discussion Starter #1
So I guess my question is, if the worst case unfolds and GM goes bankrupt, what does that mean to for the future of our beloved V car.

I guess my key question is, do you think the car line will be cancelled? Also, what will happen to the cars out there right now that are unsold. Do you think they will sell out in 24 hours because some buyers will conclude this is the last chance to buy or will they sit on dealers lots forever as buyers shy away from a buying a GM product given the company will not be there any more.

Will the prices crash as dealers and the company unload at any price to raise cash or go to a premium cause there are no more coming.

Don't misunderstand me, of COURSE there will be a car building business in the US but will platforms like the Camaro, CTS V, Charger / challenger, mustang etc still be around. Even the Vette for that matter. I feel we need large mass production companies to be able to get these lower production vehicles at a price point that is viable. If the big 2 / 3 restructure and downsize, althogh there is certainly a market for these platforms, will there be the resources and intrest in catering to this market after downsizing and fragmentation.

My plans at the moment are to buy a V in 6 - 12 months. Maybe new, maybe used. GM going under would be a negative, I think, based on my aspirations and plans.

Buti f they went under and the price on a new V dropped significantly.......I'd be a buyer, for sure.
 

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Owned 3 V's, now driving a Wrangler and XT5
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^^^^You are mistaken, this has NEVER been discussed before here :stirpot:

GM is NOT going under, my god. Wost case is they file for reorganization and they trim models/divisions. Bank it that Cadillac will be one that they will keep and bank it the CTS and CTS-V will be cars they keep making, at least in the short term. Engineering is already complete, selling the cars in the next few years is just gravy for them. Why wouldn't they sell them?
 

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2013 6MT V wagon, OBM, 2009 silver V sedan (traded)
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:werd:
 

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GM is not going bankrupt. However, which car lines remain and which cars in those car lines remain is determined strictly by the ROI (return on investment). When the bean counters decide something doesn't add to the bottom line, it's gone. It costs money to advertise, ship, and have a car on the lot. If those costs exceed the ROI, the culprit is gone. There is no sentimentality, no "we've done all the engineering," no "it's been a great seller" involved in that decision. If the bean counters decide the CTS-V is not adding to the bottom line, it's gone.
 

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V2
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Cadillac is doing extremely well so worse case they split and go out on their own. You got nothing to worry about.
 

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See you in the funny papers
04 CTS-V, 05 STS, 07 SRX- All sold :(
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There is no sentimentality, no "we've done all the engineering," no "it's been a great seller" involved in that decision. If the bean counters decide the CTS-V is not adding to the bottom line, it's gone.
"Great seller" and "We've already spent the investment money" aren't sentimental reasons to keep building a product- they're both logical financial reasons.

R&D complete + great sales = profit.
 

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I hate to keep this thread going but... GM isn't going anywhere. Sadly for some dealers, certain brands are going away but Cadillac isn't one of them. In fact, Cadillac made around $350 million last year - I think it was the only division in NA to turn a profit. Chevy is the other guarantee, and BPG will exist with fewer models.

One thing that isn't talked about in the media is; what kind of haircut are the dealers looking at? If / when GM files a 363 CH11, what percentage of the advertising and incentive money will be payed? Depending on a dealer's size, they could be looking at several hundred thousand to a million dollar+ loss.

In my mind (and this was recently stated by a legal adviser to some of the bond holders), the law is very important and it will be followed BUT if and when the US gov really wants to keep something... it isn't going away. In other words, this wouldn't be a typical CH11 363 filing.
 

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Discussion Starter #10
I don't want to reinevent the wheel here but I have not been able to find another thread on this topic is someone could point me to it?
 

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Would someone please warn me before I click on another one of these threads?
Please.... oh please!
 

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2018 CT6E, old: 2014 XTS Vsport, 2005 CTS-V, 2004 CTS-V.
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Do some internet research. Plenty of professional opinions. One thing is for sure is that Obama administration is definitely running the show for the next couple of months when they tell GM get rid of your CEO and bump up your dealership reductions of 2000 of them by 2011-12 to 45 days!

What better backing do you need than from the US government?!

If you have any working ties to Chrysler or GM in Canada I'd be worried.

Norm

I don't want to reinevent the wheel here but I have not been able to find another thread on this topic is someone could point me to it?
 

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The Tony Show,
"Great seller" and "We've already spent the investment money" are only partially true, and they are definitely sentimental in nature. You might note that in my previous post, I referred to costs to advertise, ship, and maintain a car on the lot which are not money already spent. I said it before, and I will say it again, if the the product doesn't add to the bottom line it is gone. Compared to overall car sales, the CTS-V is definitely not a great seller.
 

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You might note that in my previous post, I referred to costs to advertise, ship, and maintain a car on the lot which are not money already spent. I said it before, and I will say it again, if the the product doesn't add to the bottom line it is gone. Compared to overall car sales, the CTS-V is definitely not a great seller.
You're not actually correct on most of your points. The advertising, shipping, storage, etc, is stuff mainly covered by Cadillac and the dealers, not by GM. GM's spent the vast majority of the money they need to on the V already, in R&D. And overall, it's selling quite well insofar as dealers are moving most of the ones they get.

The V is safe. It's part of a very successful line (CTS), and there's no reason GM will go after specific models within lines. They'll instead shut down entire lines, like the XLR, and STS (from Cadillac). Or whole brands.

jas
 

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See you in the funny papers
04 CTS-V, 05 STS, 07 SRX- All sold :(
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The Tony Show,
"Great seller" and "We've already spent the investment money" are only partially true, and they are definitely sentimental in nature. You might note that in my previous post, I referred to costs to advertise, ship, and maintain a car on the lot which are not money already spent. I said it before, and I will say it again, if the the product doesn't add to the bottom line it is gone. Compared to overall car sales, the CTS-V is definitely not a great seller.
Dealers pay $825 to GM for every car that is shipped to them, which is way more than it costs GM to do it- 10 cars on a carrier x $825 = $8,250 for a trip that likely cost $500-$1000. That's profit for GM.

Advertising is handled by charging Dealers between $500 and $1,000 in LMG and LAM contributions on every car they sell, so no cost to GM for advertising, and maintaining the car on the lot is solely at the Dealer's expense. They've also already spent the millions certifying it for crash tests and SAE power.

At this stage of the game, the only cost Cadillac has associated with the CTS-V is building them, and they make a healthy profit on every one they sell to a Dealer. Cars like the STS that are rotting on lots unsold are the ones that are killing GM, since they have to throw $4,000 in rebates at every one they sell to move them, which eats up the majority of their profits. As long as the CTS-V continues selling without incentives, GM is pocketing every dime of profit on them.
 

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I've said it before and I'll say it again; a HUGE reason GM is sucking wind (at best) is because of the UAW and their associated legacy costs. They are killing the very companies and industry that they represent. I get sick to my stomach every time I think about the UAW. The End.
 

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I hope they do go to chapter 11 (or whichever part of the book they plan to use).
Killing the UAW BS will save the automotive industry.
Not sure how the 'crats are going to survive when they kill the unions by forcing GM to do something that actually makes sense but.....
 

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2015 BMUU 335i MSport, 2006 STS-V--2005 CTS-V ( traded in)
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GM has to shed 28 Billion in debt by June to avoid bankruptcy, anyone here really think that's possible for them ? That's almost the writing on the wall it will occur. Let's hope it does allow them what they need to restructure, get rid of the excess baggage, and come back strong in a couple of years.
 

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gm as we know it today may be gone but some brands cadillac, corvette, and maybe some others will emerge and live. Gm just got to fat and lost track of selling good cars (cts-v one of them). Here is a perfect example of how stupid the guys at the top are. at any car show for the last 5 years they have been showing the new camaro both conv and hardtop. teasing everyone so they can pump up marketing and now guess what? I'm not saying the camaro would have saved them but bring it out while its hot; now the conv is not even on the table.
 
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