Cadillac Owners Forum banner

1 - 20 of 23 Posts

·
Registered
cadillac srx V6
Joined
·
89 Posts
Discussion Starter #1
Rumours are that GM are close to go down, during massive loss in sales of larger cars such as escalades and such. Anyone have any ideas what will happen to warranties etc. if worst case scenario will happen??
We read here in europe that both GM and FORD and losing car sales so fast its unbelieable
Henrik
Sweden
 

·
Registered
2017 CTS-V
Joined
·
1,670 Posts
Even though GM has posted losses, they still have tens of billions in liquid. They also have 50B or so of borrowing power if they need it. The Delphi filing also will make the UAW more lenient in negotations since they have felt the consequences of a UAW company closing down. If GM closes down, a huge portion of union worker will be out of work. More lenient negotations will save GM a lot of money. This year has also been a huge spending year for GM since many of their models required retooling and retraining of factories and factory workers. If all goes well, GM should be up to par or better next year.
 

·
Registered
cadillac srx V6
Joined
·
89 Posts
Discussion Starter #3
I dont hope things will go that bad, Im about to grab the new STS instead. But you gotta wonder what can happen, when you sit overhere in europe and you just keep hearing horrorstory after horrorstory about how money keeps flowing out of the GM pockets.
I still wonder why GM dont invest more in diesel engines if they wanna get a grab a bigger chunk of the europepean market. IU know the swedish based BLS will come with a diesel engine. But I think the BLS looks too much like a saab
Henrik
Sweden
 

·
Registered
Black the Darkside
Joined
·
22,415 Posts
fallen99angel said:
I dont hope things will go that bad, Im about to grab the new STS instead. But you gotta wonder what can happen, when you sit overhere in europe and you just keep hearing horrorstory after horrorstory about how money keeps flowing out of the GM pockets.
I still wonder why GM dont invest more in diesel engines if they wanna get a grab a bigger chunk of the europepean market. IU know the swedish based BLS will come with a diesel engine. But I think the BLS looks too much like a saab
Henrik
Sweden
Henrick,
I think that's what they are..Horror STORYS. GM is very solvent. I have a big investment in GM Notes and have kept them invested.

P.S. This is old news here in the States and the public has moved on.
 

·
Registered
Black the Darkside
Joined
·
22,415 Posts
BishopRuger said:
Well I just heard this morning on the news that GM has posted record loses and Toyota is the #1 car maker in the US now...
I read it as Toyota is in contention to pass but hasn't. Both Ford & GM have difficuties with profit right now but the sky is not falling. (Another reason why I don't buy imports)
 

·
Registered
CTS
Joined
·
1,485 Posts
fallen99angel said:
Rumours are that GM are close to go down, during massive loss in sales of larger cars such as escalades and such. Anyone have any ideas what will happen to warranties etc. if worst case scenario will happen??
We read here in europe that both GM and FORD and losing car sales so fast its unbelieable
Henrik
Sweden
Do you know how may people are employed by GM, how may retirees are paid by GM, how may 3rd party vendors make livings off of GM.

They (GM) are a HUGE economy. So when they don't make profits or even show losses, that is to the investors, it dosen't mean they aren't making payroll or something.

"General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 325,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company's history. GM's global headquarters are at the GM Renaissance Center in Detroit."
GM in Europe

In Europe, GM sells its Opel, Vauxhall, Saab, Chevrolet, Cadillac, Corvette and Hummer ranges in over 30 markets. It operates 11 production and assembly facilities in eight countries and employs around 60,000 people. The company started building Chevrolet cars in Denmark in 1923. GM acquired Vauxhall in England in 1925 and Opel in Germany in 1929. A 50% stake in Saab of Sweden in 1989 changed to full ownership in 2000.
 

·
Registered
2003 CTS Manual Trans., '93 STS
Joined
·
3,035 Posts
A company like GM will never go 'belly up', but would rather liquidate some or all of it's assets. The Chinese are chomping at the bit to buy companies like GM, especially if they can get them at a discount. They've already done some downsizing (getting rid of overlapping divisions like Oldsmobile, etc), and have many more areas they could liquidate. I'm not sure I'd want the Chinese running GM, though. As a country, they're growing so fast, they'll likely gobble up production.
 

·
Registered
CTS
Joined
·
531 Posts
They need to kill off Buick too..
 

·
Registered
Joined
·
362 Posts
odysseus said:
A company like GM will never go 'belly up', but would rather liquidate some or all of it's assets. The Chinese are chomping at the bit to buy companies like GM, especially if they can get them at a discount. They've already done some downsizing (getting rid of overlapping divisions like Oldsmobile, etc), and have many more areas they could liquidate. I'm not sure I'd want the Chinese running GM, though. As a country, they're growing so fast, they'll likely gobble up production.
Just like JT said, GM is the largest auto manufacturer in the world. Corporations like this do not simply go broke, let all their workers go, then fall off the face of the map. GM could afford to operate at severe losses, just as many large corporations do, for many years without being in very serious trouble. As for the chinese possibly taking the company over, I think thats even more far fetched. I'm pretty sure the American gov't would have some sort of intervention if it ever came down to the point where GM could no longer operate, and the Chinese wanted to buy it. Not likely, us civillians are very aware of Chinas postion in the international market place, just image how much more the government knows, they won't just sit back and watch some of the greatest american companies be gobbled up to further weaken the american strength as a world power.
1 thing to always remember:
big business is very different than small business

a small company's profits are directly related as to how much the owners/shareholders/managers will be paid. If they make large profits, typically there will be large bonuses. If they lose money, there will be no bonuses and the owners may weigh the factors of potentially pumping more of their personal capital into the business if they still have faith in it.

a large company's profits have nothing to do with how much anybody is paid. The company may lose 2 billion dollars in one year, and the VP may get a bonus of 3 million. Why? Because he may have made some good decisions that saved that company from potentially losing 10 billion dollars that year. So in reality that person saved the company 8 billion dollars, so it is well worth it to keep him around and pay him millions as long as he's saving the company money. The pay has no relation to the loss of/excess of monies of that company.
 

·
Registered
Joined
·
108 Posts
GM has just too much money in the bank to go broke any time in the near future, but when you hear that they want to sell their crown jewel GMAC to raise cash, the writing is on the wall. If they continue to lose market share GM could wind up as a much smaller and weaker player in the market place, or have to sell off whole divisions to other manufacturers in order just to survive. I have a number of great GM cars that I have purchased over the last ten years that I am going to keep because I prefer GM cars. These are not stored away in some garage either because I want to enjoy driving all of them now. I will be looking carefully at GM's upcoming line up to see if there is something else I want to get just in case the unthinkable happens. I remember how bad Chrysler looked when the Government bailed them out and look at them now. Maybe GM should have hired Lee Iacocca instead of Bob Lutz.
 

·
Banned
Cadillac
Joined
·
16,105 Posts
PAW 47 said:
They need to kill off Buick too..
Dude,

Are you aware of how many billions killing off OLDSMOBILE cost GM?! All the orphaned Olds dealerships decided to sue GM for abandoning them and HOPEFULLY GM learned it's lesson! I don't think GM can afford to, nor should they kill off another division IMO. Considering that Olds was more profitable (in its last year) than Saab and Saturn combined they had NO business killing it off. Buick has it own loyal buyers as Olds did, and if Buick is killed, you may as well kill off Cadillac, GMC trucks, oh hell, why not Pontiac too because they almost did 15 years ago. etc. etc. See my point? GM got to be the biggest car company in the world by NOT making the mistake of killing off divisions, but by adding them in it's heyday and re-investing into product. (also less risk of being taken over ----look to the emerging Chinese auto and auto-related companies looking for weak companies to take over or buy shares in.) China just offered 450 billion dollars for Exon oil if I'm not mistaken! How long before they could buy Ford!!?? Ford is in the dumpster right now with shares only costing just over 8 dollars!!! GM is still ok at mid-to high 20's.

The beauty of having a large corporation with many divisions is that the profitable divisions will carry the lesser ones until THEY themeselves start to turn a profit. When you kill a division, you are not considering LONG-TERM profit, only SHORT-TERM profits. For example, the "potential" for Olds, or even Plymouth to make money again is completely lost and will never be back. It's gone. Olds could have produced a retro-442 to compete with the Mustang GT right now, (as an example) and was it wise to kill off the GM F-body just because they weren't profitable for a few years?? No way, and now Mustang wreaks ALL the profits in that niche.

Re-investiment works for an automotive company. Look at how profitable Cadillac is now after the billions re-invested. Cadillac certainly COULD have been killed in the late 1980's when they were not profitable, and when many thought they should have been killed off, but it is a GOOD thing the division was not killed off back then! Look at how boring the cars are at Lincoln. It's no secret that Ford was starving Lincoln for years and investing the money into Jaguar as the primiere luxury division. The LS never changed since 1999 and now it's dead, as just one example for Ford. Ford sure shows a lot of concept vehicles, but they rarely produce them.

I think a major problem for GM is that they overproduce too many cars, they sit around on dealer lots and they cannot sell them, so then they have to offer incentives, or cut the price. This overproduction also creates steep depreciation because they have to lower the price, OR they end up closing down more GM plants because of this....

Here are today's stock prices.....

DaimlerChrysler AG (ADR) DCX 50.69 +1.29 (+2.61%) (50 dollars per share)

Ford Motor Company F 8.02 -0.02 (-0.25%) (8 dollars a share!!)

General Motors Corporation GM 27.26 +0.07 (+0.26%) (sitting pretty at 27.26)

Honda Motor Co. Ltd. (ADR) HMC 27.33 +0.03 (+0.11%) (same as GM)

Toyota Motor Corporation (ADR) TM 91.25 +0.98 (+1.09%) (has the money to do whatever they want)

p.s., I like your Bullitt avatar!
 

·
Banned
Cadillac
Joined
·
16,105 Posts
Also, one more very bad thing about when GM killed Olds, people panicked and THOUGHT GM was literally going bankrupt!!! When they were killed, Olds had a very hard time selling those Oldsmobiles stuck on the lots, and when you invest billions for designn, production, advertizing, etc. it's not good business to just give up on them......
 

·
Registered
cadillac srx V6
Joined
·
89 Posts
Discussion Starter #14
I dont think neither that GM will declare bankrupsy anytime. and I dont hope so either, but I think GM needs to adjust to market demands and act faster than they usually do.
I have been very pleased with the 2 caddys I have owned so far and ill be happy with my new STS when I buy it (anytime soon).
As far as overproducing cars, maybe GM should ship more over here to europe and drop prices abit more, as it is now, why would I buy a new CTS 3.6L fully loaded, when I can get a fully loaded STS 3.6L for just a little bit more??? it just dont make any sense to me.
GM are in the newspapers and car magazines alot overhere, but mainly because of the situation with the moneyloss in carsales.
On the more positive side, the cts-v - xlr and sts are getting good reviews.
Henrik
Sweden
 

·
Banned
Cadillac
Joined
·
16,105 Posts
fallen99angel said:
I dont think neither that GM will declare bankrupsy anytime. and I dont hope so either, but I think GM needs to adjust to market demands and act faster than they usually do.
I have been very pleased with the 2 caddys I have owned so far and ill be happy with my new STS when I buy it (anytime soon).
As far as overproducing cars, maybe GM should ship more over here to europe and drop prices abit more, as it is now, why would I buy a new CTS 3.6L fully loaded, when I can get a fully loaded STS 3.6L for just a little bit more??? it just dont make any sense to me.
GM are in the newspapers and car magazines alot overhere, but mainly because of the situation with the moneyloss in carsales.
On the more positive side, the cts-v - xlr and sts are getting good reviews.
Henrik
Sweden
Good points Henrik.

I like your point about the BLS looking too much like a Saab. We had quite a discussion about this in the BLS forum, and I also don't think Europeans will be fooled into thinking it's a genuine Cadillac when in fact it is just a re-skinned Saab. When I think of the BLS, I also think of other Cadillacs that were not genuine Cadillacs, such as the Cimmer and the Catera, and they did NOT do very well.

Cadillac really should try to send more over (even with right-hand-drive, and they are sending SOME more) but I think that Europeans really WANT a GENUINE Cadillac which is why they COULD have just sent over CTSs instead of rebadging the Saab.
 

·
Registered
cadillac srx V6
Joined
·
89 Posts
Discussion Starter #16
ohh yeah, the BLS looks completely like saab and i dont think people will be fooled, atleast people that have owned cadillacs before, but new costumers?, sure they will proberly go for it. Considering that the price tag will be pretty high( the v6 turbo) will cost about the same as CTS top model. It could be hard to compete with other european cars in that same segment. But atleast Im glad to see GM stepping up and will be selling their first diesel engine with the BLS. Its no secret that if you wanna sell cars in europe, you GOTTA have diesel engines. Thats also why a brand like Lexus are a minor player in europe
Henrik
Sweden
 

·
Registered
NONE
Joined
·
1,423 Posts
GM Investing $20 Million In Louisiana Truck Plant For Higher Output

Company Increasing Production of Hummer H3 SUV, Chevy Colorado and GMC Canyon Pickups
Third Shift In Plant’s Paint Department To Begin During Q1 2006
PONTIAC, Mich. – General Motors today announced it will invest approximately $20 million by early 2006 at its Shreveport, Louisiana truck assembly plant to increase production of the HUMMER H3 SUV, Chevy Colorado and GMC Canyon midsize pickups. To prepare for the increased output, the Shreveport plant will add a third production shift to its paint department during the first quarter of 2006.
H3, the new mid-size HUMMER, continues to drive record sales for the division and broaden its appeal from a niche brand to a wider audience. HUMMER is helping GM attract a younger, more-affluent customer base. The average age of a HUMMER owner is 44. About 70 percent of vehicles traded in by H3 buyers are non-GM models. HUMMER sales in October were up 129 percent compared to year-ago levels. Chevy Colorado sales were up 17.6 percent on a calendar year-to-date basis (January – October) compared to the period last year, while GMC Canyon sales have increased 42.6 percent.
In the last five years, GM has invested more than $20 billion in its U.S. operations. GM’s total recent investments in Shreveport for production of the HUMMER H3, Chevy Colorado and GMC Canyon top more than $1 billion.
Shreveport Assembly has built trucks since 1981, beginning with the Chevy S-10. Shreveport Assembly employs about 3,200 employees.


GM Prepares For Higher Output At Delaware Plant
Company Moves to Speed Pontiac Solstice Production, Prepare for Saturn Sky

PONTIAC, Mich. - General Motors today announced plans to add a third shift of production at its Wilmington, Del., car assembly plant after the first of the year. The plant, which currently produces the Pontiac Solstice roadster, will begin building the Saturn Sky and a new Opel roadster in 2006.
"By adding the third shift in January, we will increase the flow of Solstices to help fill the thousands of orders we have already received," said John Larson, general manager of Buick-Pontiac-GMC.
Since first shown as a concept at the 2002 North American International Auto Show, the Pontiac Solstice has been a hit with both critics and customers. When orders were first taken in April, the first thousand vehicles were sold in only 41 minutes and, to date, more than 15,000 orders have been received. The introduction of the new Saturn Sky during the first half of 2006 is expected to build upon the initial success of the Solstice.
 

·
Registered
cadillac srx V6
Joined
·
89 Posts
Discussion Starter #18
those are carsales in US, pontiac and saturn are not for sale in europe, unless you import them yourself. Hummer is also a small player here, mainly again because(im gonna say it again) no diesel engine.
Im aware that the US market are GM main area, but it would be a mistake not to try to move in big on europe.
I hope i dont give the impression that Im trying to lash out on GM, because I also own a cadillac, but I look at it from a european view and I just dont think they do things very well business wise overhere.
Henrik
Sweden
 

·
Registered
NONE
Joined
·
1,423 Posts
Those that buy luxury rides like the Escalade don't care about the price of fuel, they can afford it. So those are always in demand.
 

·
Registered
cadillac srx V6
Joined
·
89 Posts
Discussion Starter #20
ofcourse, thats the same for people that buy bentleys, but GM cant live of escalades alone, and for larger trucks, most companies here will anytime prefer diesel trucks in order to save money for the company.
But again you dont pay 1.20$ for 1 Litre of gasoline like we do and this is excactly where the problem is for larger cars and big engines, anywhere else than in the US, people have a big focus on how much gasoline a car uses.
I read that all the big trucks and suvs are pilling up on carsales places and they try to unload them at dumping prices. because people dont want them anymore because of the oil prices, but I may be wrong.
Henrik
Sweden
 
1 - 20 of 23 Posts
Top