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GM soon bankrupt


elef

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One big thing the US could do to painlessly drive people into more fuel efficient cars is the tax/registration scheme the rest of the world uses: charge by engine size. Most US states charge by vehicle cost.

 

But some of the assumptions about the US auto industry are just simply not true.Some facts:

 

(1) Fuel Efficiency? The most fuel-efficient Chevrolet Malibu gets 33mpg. on the highway, 2mpg better than the best Honda Accord. The most fuel-efficient Ford Focus has the same highway fuel economy ratings as the most efficient Toyota Corolla. The most fuel-efficient Chevrolet Cobalt has the same city fuel economy and better highway fuel economy than the most efficient non-hybrid Honda Civic.

 

(2) Lack of Hybrids? Ford and GM each now offers more hybrid models than Honda or Nissan, with several more due to hit the road in early 2009. Add in the FlexFuel vehicles and the plug in concepts, then you're on par with Toyota.

 

(3) Quality? An independent J.D. Power Initial Quality Study scored Buick, Cadillac, Chevrolet, Ford, GMC, Mercury, Pontiac and Lincoln brands' overall quality as high or higher than that of Acura, Audi, BMW, Honda, Nissan, Scion, Volkswagen and Volvo.

 

(4) From the latest figures I have available (2004), GM, For and Chrysler all outsold Toyota (the biggest importer) by a significant margin on a unit sales basis -- GM sold 4.6M units, Ford 3.3M, and Chrysler 2.6; Toyota 2.2M. So much for building cars that no one wants.

 

(5) Japan, Korea & even Germany all pump significant R&D dollars into their auto industries. The also have universal healthcare and retirement benefits. The Big 3 pay for all that out of their pockets. Free trade? Not so much: we let them in for free, yet our vehicles are restricted by high tariffs and quotas. So, if the Big 3 had that kind of advantage, they would be kicking the foreigner's asses all over the map.

 

(6) No future R&D? The most viable example (usually this stuff is very secret for obvious reasons) is the Chevy Volt (very revolutionary and a big deal from an engineering standpoint). No Big 3 basher ever brings this up...probably because it's long-term development over the last 5 years or so completely refutes their whole "these companies haven't even been trying to innovate with environmentally-friendly vehicles" argument. All I have heard are talking points about the mistakes of the past and the egregious point that these companies tried to make and sell the vehicles that MOST Americans wanted (at least until gas rose to $4.00 a gallon).

 

This doesn't even get into the fact that the unions have given so much back over the past decade+ that a bloody Starbucks barrista makes almost as much ($14/hr with shittly healthcare and no pension is the new starting wage for a UAW line worker; pouring coffee in San Francisco pays $13!)

 

Cheers,

SD

 

You just left out the fact that Daimler sold Chrevrolet, since the company just couldn't leave the red zone. Also you left out the fact that makers like VW sell mostly small and mid size cars while the big three made their money with outdated SUV's...

 

Also, Germany has very high wages, a good but expensive health care and pension system, but it doesn't seem that the German makers are on the verge of bankruptcy (albeit they are hit very hard as well at the moment).

 

Therefore something in you list must be wrong, liek that the US makers don't sell enough small, low emission cars or that their production is too expensive...

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GM's 0 percent financing helped calm a nervous nation after 9/11

 

Ralph Kisiel

Automotive News

September 14, 2008 - 12:01 am ET

 

 

After the Sept. 11, 2001, terrorist attacks, the American economy spiraled down and auto sales slowed to a crawl.

 

The country needed leaders, and General Motors stepped up.

 

"I was right in the middle of it," says John Middlebrook, then vice president for vehicle brand marketing and corporate advertising. "It looked like we were going into a paralysis, both as a country and as a company."

 

GM quickly devised a bold plan that jump-started auto sales and the economy.

 

In a matter of days, GM created "Keep America Rolling," an incentive program that offered 0 percent loans for nearly all models. It tried to engender confidence in the economy, and it stimulated auto sales. Americans seemed to breathe a collective sigh of relief.

 

"It was a stroke of genius," says John Smith, now GM's group vice president of global product planning. "It was a very inspired moment and one I was frankly rather proud of."

 

Middlebrook, 67, who retired July 1 as GM's vice president of global sales, service and marketing, agrees.

 

"There was just no hesitation right up and down the company," Middlebrook says. "It is a very expensive thing to do, and that was not in our plans. But it was the right thing to do."

 

GM estimated that the program, which ran through December, added about 1 million total U.S. sales by year end. The automaker grabbed price leadership of the domestic auto industry. Ford and Chrysler followed suit and others crafted their own incentive programs.

 

But while confidence was restored and sales jumped, the incentives created problems in later years. U.S. consumers grew accustomed to hefty incentives on new cars and trucks. GM, and those who followed with 0 percent financing, turned America into a nation into incentive-addicted, deal-obsessed shoppers.

 

What 0 percent did

Results of "Keep America Rolling"

â?¢ Added 1 million total U.S. sales by year end, GM says

â?¢ Jump-started the economy

â?¢ Forced other automakers to follow suit

â?¢ Made consumers accustomed to hefty incentives

â?¢ Helped to reassure a nervous nation

 

 

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