You get no argument from me that they make a “competitive” product, but if they can’t make it profitably without being supported by the government, they should fail just like any company that can’t do the same…well at least that’s what used to happen.
~Matt
Of course the products are relevant and in demand. I think price point could be improved dramatically with reduced labor costs, which would drive a significant increase in market share, but the products sell. Those that claim that they aren’t relevant are likely attempting to apply their own personal preferences to the entire market. Unfortunately, the aforementioned labor costs are also killing profitability. You can have the most popular product in the world, but if you can’t make money producing and selling it, you’re not gonna survive.
Interestingly, in March, once again 2 of the 3 top selling vehicles were full-sized, domestic pickup trucks (F150 and Silverado).
So, if a company makes a product that people want, but can’t do it without losing money, you would support goverment money to prop it up?
Does that work for the millions of small businesses out there or is it just reserved for GM?
What about the airlines (people like and want to fly), fishing industry (people like fish), farmers (people need food) etc., etc.
you forgot hookers and strippers…bike shops,.
in that case, I have only one word for that!:::::: UNION!
thats why the GOV will step in to help them or “save” them. Personaly, I dont give a crap, i dont buy their crap cars and I dont give a crap about unions…Let them figure it out WITHOUT my tax dollars. The current administration is talking tough to the big 3, but in the end, they will fork over every buck the big 3 wants…
i suppose every auto maker has their loyal cutomer. And the big 3 are helped by the gov with a good protion of those purchases…you wont see any gov agency riding around in a toyota or honda…rental car companies purchase alot those vehicles as well. I would bet that if the gov and rental car co didnt purchase those vehicles, the big 3 would be in some serious SHIT!
You might want to show how the percentages of market share have changed over the last 30 years. If as I suspect GM’s percentage has gone down, it might be a reflection of the market realizing other companies make better cars.
I agree…
I have had only 3 american cars…a 1967 chevy malibu…great car…a 1972 ford f100 custom pick up…another good vehicle…all easy to work on, decent gas milage, reliable…I tended to buy nissans, honda’s and toyotas…I broke down and got a ford excursion…what a piece of crap…windows and door locks started acting up or not working at about 25, 000 miles, total transmission failure at 50,000 miles…also the wife had a bmw at one time,that thing seemed to always be in the shop! I will stick with QUALITY myself…
I’ve had a ton of both American and Japanese cars. I’ve mostly never had a problem with either of them, quite honestly. Right now, my wife and I own two new '08 American cars (a Buick and a Lincoln) which we bought late last year, and I just leased an '08 Infiniti G35x (the lease deal was off the hook, and I had my airline VPP supplier discount). Not only am I doing my part to increase my carbon footprint (sorry Fleck :-), but I’m also trying to help as many car companies as I can 
I hope GM and Chrysler make it, I really do. And that Challenger is a very cool machine. Maybe later in the summer…
I’d never buy a Yugo, but that’s about the only car I can think of I would be afraid to own. Even a Trabant could interest me. And I think Skoda autos look great. GM and Ford, especially, have great products coming out all the time, but whether GM can survive long enough to reduce costs, eliminate its debt and right-size its operations is a real question at this point. I think (and I and my father and nephew have bought a bit of stock in the company) that it might be better if the General goes into bankruptcy at this point. The size of its problems is gargantuan. It may be the company’s only hope, in actuality.
T.
You might want to show how the percentages of market share have changed over the last 30 years.\
I started reading through this thread, and there it was, the answer to the OP’s question. And a lot fo GM’s sales are not in this country, if not for that, then they would already be dead. So they still sell a lot of cars that they cannot make money off of, but a whole lot less than they used to. So where is business model that keeps them afloat??? There are two, one is bankruptcy and total reorginization from top to bottom, and the other is to give them our money forever… I also would like to see the two graphs side by side, Toyota, Honda, and GM for the last 30 years, that is the real story here…
I think the only car company that has increased sales during this downturn is Hyundai, a lot of that probably having to do with their buyer assurance program and some recent quality awards. I drove a Hyundai wagon from 2001-2008 and it was a real nice car, especially considering it only cost $11,000.
Anyway, as recently as the early 1990s, Hyundai really sucked (remember the Excel?), bad cars, bad reputation. So somehow, they’ve managed to turn themselves completely around…from a total joke to quality awards, etc.
So they aren’t making any money, and they apparently don’t have enough volume, but they make it up in market share.
It was about all the comments made that the GM does not make any products people want. I still don’t understand how someone can make that comment about the #1 selling company in the country with over 18% market share.
I did not see the article in question and I do not know all the facts involved in this analysis, so, this is more a question than a statement. I believe (but am not certain) that GM has, literally, been giving away cars for the last few months. I mean, literally, they are losing money. Locally, I have seen GM trucks priced 30-40% off sticker. I also believe GM has been providing cash back and crazy financing rates. My point is, I am not certain those numbers cover a long enough time period and I think they may be swayed by the price and incentives. I don’t care who the maker is, if you give the cars away, people will buy them. I don’t care if they don’t want this model or don’t want that model, if you give them away, people will buy them. But, how long can you give the cars away?
I believe the problem with GM is that they have ahd a great deal of trouble staying competitive with pricing. I saw a story about 2-3 months ago that showed the cost per car for GM was $1,200 - $2,500 higher than for Honda, Toyota, Kia, and others. All this was covered by labor costs.
Bottom line, I am not sure your chart proves your point (but, I could be wrong).
I believe (but am not certain) that GM has, literally, been giving away cars for the last few years.
fixed that for you. Remember when shortly after 9/11 they were going to fix the economy (get things moving…) by giving us all “employee” pricing AND 0% financing for 60 MONTHS!! Guess they were just patriotic…
I believe (but am not certain) that GM has, literally, been giving away cars for the last few years.
fixed that for you. Remember when shortly after 9/11 they were going to fix the economy (get things moving…) by giving us all “employee” pricing AND 0% financing for 60 MONTHS!! Guess they were just patriotic…
I forgot about that. Yep, I do remember.
So, are you trying to tell me that GM tried a “stimulus package” of sorts, and it failed … and the company is now on the verge of bankruptcy … Wait a minute. I don’t get it. Stimulus packages ALWAYS work, don’t they?
2 seperate conversations
a) this stimulus package will fail (badly)
b) GM’s 9/11 plan was smoke and mirrors which just perpetuated the inevitable (via GMAC which is an even bigger joke than GM). Bottom line is this is an organization that died in the 1970’s and just didn’t have the good graces to lay down and be quiet (like a chicken with the head cut off). But it may soon…
PS We swimming in the big lake this year?? Hope so as I am cocked blocked and ready to rock for IMOO…
PSS you watch the games on your trainer tonite (i did for the first one)…