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  #1  
Old Aug 25th 2009, 03:29 PM
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Default GM still out to lunch

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At GM, Dreams of an Electric Cadillac

Despite opposition from the Treasury Dept. and others, some GM execs still want to put the Chevy Volt engine in a luxury vehicle
Source

This would be funny if it wasn't true. Obviously, one major downside to the government rescue of GM was the fact that the entire executive staff wasn't fired immediately. This hair-brained scheme proves that the idiots are still in charge and that means in the short, medium and long term, there's no hope for GM.
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Old Aug 25th 2009, 06:38 PM
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Default Re: GM still out to lunch

That's one of the redeeming factors of a true chapter 11, the upper tier of management is normally immediately out the door. The new senior management then brings in proved planning and operations people at the director down levels. Clean sweep with a new broom.

Too bad government doesn't work that way.
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Old Aug 25th 2009, 09:55 PM
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Default Re: GM still out to lunch

Is their a poster who remembers how much public money England, sorry, the UK, spent on British Leyland and then the Rover Group before tossing in the towel?
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Old Aug 26th 2009, 10:05 AM
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Default Re: GM still out to lunch

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Is their a poster who remembers how much public money England, sorry, the UK, spent on British Leyland and then the Rover Group before tossing in the towel?
I used to own a MG Spitfire! (TR-5)

At least the Brits eventually threw in the towel. I doubt the US government will ever do that. Its not in their DNA to do that.

Btw, the official British reason for supporting British Leyland was "national security". Does that reason sound familiar?
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Old Aug 26th 2009, 12:46 PM
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Default Re: GM still out to lunch

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I used to own a MG Spitfire! (TR-5)
China now owns and produces the MG marque.

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At least the Brits eventually threw in the towel. I doubt the US government will ever do that. Its not in their DNA to do that.
It's rather telling that the old slogan "As goes GM, so goes America" is still valid.

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Btw, the official British reason for supporting British Leyland was "national security". Does that reason sound familiar?
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Old Aug 26th 2009, 09:14 PM
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Default Re: GM still out to lunch

I recently heard a radio ad that brings some clarity to the US vehicle market:

Kia (some model)
$169/mo for 62-months
10-year, 100,000 mile warranty
Credit requirements - 6-month job
Retail purchase price $11,995.
All rebates to dealer

This was a saturation ad that played about every 15-minutes on the FM rock station I sometimes listen to. They're obviously after basic transportation customers and have easy credit financing.

Question: What products do US manufacturers have that can compete with that offer? All I read and hear about is the GM's Volt sometime in 2010 and it ain't cheap.
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Old Aug 26th 2009, 09:22 PM
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Default Re: GM still out to lunch

From what I hear, it's Toyota which is still cleaning up in the American market. The car most commonly purchased through the Cash-for-Clunkers program was the Toyota Corolla. In a sense it probably served to stimulate the Japanese economy as well...
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Old Aug 27th 2009, 07:08 AM
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Default Re: GM still out to lunch

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Originally Posted by dilettante View Post
From what I hear, it's Toyota which is still cleaning up in the American market. The car most commonly purchased through the Cash-for-Clunkers program was the Toyota Corolla. In a sense it probably served to stimulate the Japanese economy as well...
Toyota Corolla is built in two plants in North America - Freemont California and Cambridge Ontario - so buying this car is a boost to the North American economy.
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Old Aug 27th 2009, 01:00 PM
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Default Re: GM still out to lunch

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Toyota Corolla is built in two plants in North America - Freemont California and Cambridge Ontario - so buying this car is a boost to the North American economy.
Has anyone bothered to see if tax revenue from the sale of those cars and the economic flow-through will cover the public subsidy? Or is it just another attempt to contain lagging GDP growth?
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Old Aug 27th 2009, 01:49 PM
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Default Re: GM still out to lunch

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Has anyone bothered to see if tax revenue from the sale of those cars and the economic flow-through will cover the public subsidy? Or is it just another attempt to contain lagging GDP growth?
I'm sure it won't in the short term, especially if you consider that about half of the people using the Cash-for-Clunkers program would have bought a new car in the near future anyway. Over the long-term its probably impossible to say whether these sorts of things will pay for themselves.
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