Which GM Brand Will Go?

[hogmeat]

Wow, and even another Iowa native. Do you post on it? I don't, but have been tempeted to. I like that guy who grew up in Iowa City too. Such a good writer. Paul?

Dammit. I misspeeled "hear".

[ShrinerMonkey]

Wow, and even another Iowa native. Do you post on it? I don't, but have been tempeted to. I like that guy who grew up in Iowa City too. Such a good writer. Paul?

Dammit. I misspeeled "hear".

Paul Niedermeyer... I believe he is from Dubuque originally like I am. No, I have not yet posted, very bright people on there for the most part and it is kind of intimidating.

[NewLegGT67]

I voted for Buick.

Everytime I go to the NYC Auto Show I feel sorry for the Buick Reps. They get no love in the US.

[IwannaSportSedan]

Buick gets TONS of love in China, where the economy, and GM's presence is growing.

[ShrinerMonkey]

Buick gets TONS of love in China, where the economy, and GM's presence is growing.

And where GM hasn't yet destroyed it's brands and reputation.

[SLegacy99]

Ford to retool factories, focus on smaller cars

Source says company will make announcement after earnings statement

The Associated Press

 

updated 7:18 p.m. ET, Tues., July. 22, 2008

 

 

DETROIT - Ford Motor Co. plans to revamp some U.S. plants and bring six small vehicles to the U.S. market from overseas to meet customers’ growing demand for more fuel-efficient options, a person briefed on the company’s plans said Tuesday.

Ford has no immediate plans to close U.S. plants despite overcapacity in a slumping market, the person said. Instead, the automaker will retool plants to increase production of smaller cars and engines. The person requested anonymity because Ford isn’t confirming details until Thursday, when it releases second-quarter earnings.

The moves will further accelerate Ford’s efforts to ease its dependence on trucks, sport utility vehicles and vans, which accounted for 45 percent of its sales in the first half of this year. Ford’s U.S. sales dropped 14 percent in the first six months of 2008 as consumers shocked by rising gas prices sought smaller vehicles.

 

The steep sales decline is expected to drag down Ford’s second-quarter results after a surprise $100 million profit in the first quarter. Ford had warned that the results were an anomaly, and in May it abandoned its long-stated goal of returning to profitability by 2009. Analysts surveyed by Thomson Financial predict a second-quarter loss of 27 cents per share.

 

The moves to be announced Thursday are Ford’s latest efforts to deal with plunging truck and SUV sales, which have also forced production cuts at General Motors Corp., Chrysler LLC, Toyota Motor Corp. and Honda Motor Co. In May, Ford announced it would slash truck and SUV production and cut several thousand salaried jobs on top of the 8,000 U.S. hourly jobs it is trying to cut this year.

 

On Monday, Ford said it plans to begin offering buyouts to workers at facilities in Michigan and Ohio, building on targeted buyouts offered in June at other plants in Kentucky and the Midwest.

 

Ford announced last month that it was cutting truck and SUV production for the rest of the year and increasing production of the Focus small car and Ford Escape and Mercury Mariner small SUVs. It also delayed the launch of its new F-150 pickup until fall.

 

Also in June, Ford revealed that it will build the global Fiesta subcompact at its factory in Cuautitlan, Mexico, which has been making trucks, and that it will build the European Focus small car in North America. Both cars are set to go on sale in the U.S. in 2010.

 

 

The company now plans to bring even more vehicles over from Europe and produce them in North America, according to the person briefed on the plans. They could include the Kuga small crossover vehicle, the Transit Connect and C-Max small vans and the next-generation Mondeo midsize car, which likely would replace the current Ford Fusion and Mercury Milan.

 

Some factories, the person said, will be retooled to produce more fuel-efficient four- and six-cylinder engines and more efficient transmissions for the new vehicles.

Also, to meet high demand for the current Focus small car, Ford will retool part of the Michigan Truck plant in the Detroit suburb of Wayne to build Focus bodies. The bodies would then be shipped next door to the Wayne Assembly plant, where the Focus is made, the person said. Ford has been trying to crank out more Focuses at the Wayne Assembly plant, but analysts have said its body shop can’t move as quickly as the rest of the factory, and that has slowed production.

 

Production of the Ford Expedition and Lincoln Navigator SUVs, which are currently made at the Michigan Truck plant, would be moved to another location, likely the Kentucky Truck Plant in Louisville, which builds Ford F-250 and F-550 Super Duty pickup trucks.

 

Rocky Comito, president of the UAW local in Louisville that represents workers at the plant, said Tuesday he hadn’t been told of any changes, although Ford promised new products for the truck plant and the Louisville Assembly plant in its national UAW contract reached last year.

 

“We tell them we’ll build whatever they bring us,” Comito said.

 

Greg Gardner, an analyst for the consulting firm Oliver Wyman, which publishes the annual Harbour Report on auto manufacturing, said converting an auto plant’s operations from trucks to cars is no easy feat and could easily cost tens of millions of dollars per factory. But the changeover is critical, he said, since Ford has lost small-car sales because it didn’t have enough inventory.

 

“You can’t use the same conveyor system for trucks as you can for cars,” Gardner said. “There’s some equipment, like torque wrenches and things like that ... those are common to any vehicle. But really heavy-duty capital equipment has to be different.”

But it’s unclear if Wall Street will be satisfied with Ford’s latest plan. Brian Johnson, an analyst with Lehman Brothers, said Tuesday in a note to investors that Ford still has too much North American plant capacity and needs to close plants.

 

Ford shares rose 36 cents, or 6.6 percent, to $5.84 Tuesday.

 

Im not seeing the Fusion/Milan being replaced, as they are quite light, safe, reliable, and increasing in popularity.

 

Why not offer the Mondeo here exclusively as a Mercury. Give them something to tout.

[SLegacy99]

http://www.nytimes.com/2008/07/22/business/22ford.html?_r=3&pagewanted=2&bl&ei=5087&en=dda6078ee596e341&ex=1216872000&adxnnlx=1216730324-SgCVuNMmfqt8VfKy1EP%20aQ&oref=slogin

 

Apparently Mercury will stay and become a small car manufacturer. I think a smart move might be to make Mercury a dedicated hybrid lineup. Offer the Mariner, Mountaineer, Milan, and "Sable" and nothing more.

[ShrinerMonkey]

Great, so Ford is going to continue to move Mercury down market. That makes sense.

[SLegacy99]

I think I figured out Detroits problem. I met a very nice couple at the bar last night. This guy was a retired auto excutive from Detroit. He wouldn't tell me which company. Nice fellow though.

 

So we get to talking and he says that they just got a new Prius. First non American car that they have ever owned and they love it. So my dad says, oh yeah, we've got a hybrid too. The RX hybrid. They looked at us weird. My dad continues and says the Lexus RX400h. They were still bewildered. The Mrs. was vaguely familiar with Lexus. The guy though, the auto exec. had no idea what that was. I got to talking to him later and he had no idea what Subaru was either.

 

So I would say that Detroit has a problem, given that they don't know what there competition is. Obviously, this is just one man, but I find this hilarious. Work in the auto industry for 30 years and not know what Lexus is. Lexus is almost 20 years old.

[IwannaSportSedan]

And Subaru started being imported in the 1970s. more than 30 years ago.

 

That kind of myopic nonsense is amazing, but somehow not surprising.

 

Unable to look at the whole landscape of the industry, and figure out what is good, and what needs to be improved. They almost have less product knowledge than the mainstream people they expect to buy their stuff, let alone an enthusiast's level of understanding.

 

They probably haven't had to really shop for a car for 30 years. As an exec, he probably got a paid company car, or at least a hefty discount for whatever inside product they chose. They have probably never been on a non-brand car lot, for a company that he didn't work for. Never comparison shopped anything.

 

Amazing.

[RobE]

http://www.cnbc.com/id/25885750/for/cnbc/

[SLegacy99]

I can't believe that they haven't considered throwing the two mode hybrid into the Hummer. I don't think its a good idea, but I think there are some rich people out there they would be keen on the oxymoronic idea of a hybrid Hummer.

[05GT Guru]

They have the tahoe hybrid lol, its soo useless, like 2 more mpg than the normal tahoe.

[SLegacy99]

They have the tahoe hybrid lol, its soo useless, like 2 more mpg than the normal tahoe.

The Tahoe hybrid was a big mistake in their part. They rushed to get it out there and their best choice was the 6.0L LS engine. Efficient in the Corvette yes, but as we've seen in the Escalade no. They should have paired the two mode with their DI 3.6L. At 300 HP + the HP from the electric motors it would have been plenty of power at a more efficient use.

 

Supposedly they have a new, smaller V8 that will replace the 6.0L. 4.9L I believe it is. However, I still think that a 6 cylinder would have done fine.

[ShrinerMonkey]

Tahoe hybrid price:

 

$50,900

 

Epic fail

[05GT Guru]

So i was reading that you get a huge tax deduction for owning a hybrid like 3400dollars.

[chenc544]

It depends on make, model and when you purchase the vehicle. For example, all Toyota hybrids are no longer qualify for the rebate. They sold too many of them.

[camber]

Meh..... GM should be pushing diesels for their big trucks and SUVs.

[05GT Guru]

Why diesels gets 4more mpg the silverado diesel gets 24mpg freeway and the gasoline gets 20-21. Lets say they have 20gallon tanks, the gasoline would get 420miles to a tank and the diesel would get 500. But diesel gas is 4.70 and regular here is 3.79 so it would take the diesel 94dollars to fill up and the gas would take 76. That 18 extra dollars would net the gasoline truck 100more miles so the gas truck would get 520miles with 94dollars and the diesel would get 500 with 94 dollars. All in all you still get more miles for your dollar with the gas truck. Yes the diesels make more trq and have a turbo but still most people who dont tow anything over 3klbs would rather just have gasoline, its not up to GM to decide what the people want.

[SLegacy99]

It depends on make, model and when you purchase the vehicle. For example, all Toyota hybrids are no longer qualify for the rebate. They sold too many of them.

 

Not entirely true. You can still get a rebate no matter what brand do you but it just depends on the state you live in. For example, Pennsylvania will give you $500 for any hybrid purchased.

[chenc544]

Not entirely true. You can still get a rebate no matter what brand do you but it just depends on the state you live in. For example, Pennsylvania will give you $500 for any hybrid purchased.

 

Didn't realize states are giving out rebates. Any other states doing that?

[SLegacy99]

Didn't realize states are giving out rebates. Any other states doing that?

I think that there are only a few that aren't. States with smaller populations like Nevada.

 

I just noticed that you can get $3000 back for getting the Escape hybrid, which is only $2000 more than its V6 counterpart. And since it has the power of a 6 cylinder, I think I'd go for the hybrid and save the $$$$$.

[SLegacy99]

Saab Gets One Last Chance To Restore Its Profitability

 

Last week, in his GM FastLane blog, GM Vice Chairman Bob Lutz confessed that although "in my younger days I was never what you would call a Saab enthusiast," he is now a champion for the Swedish brand. "We in senior management are convinced that Saab is a jewel in the GM crown, and we're determined to ensure its success," he wrote.

 

"So while I've read a number of comments on this blog questioning the future of Saab, let me say that it belongs in the GM family and we plan on keeping it there," Lutz added.

 

Such public support from his boss must be appreciated by Steve Shannon, the new boss of Saab Automobile USA, but his job, saving Saab while keeping the brand's loyalists happy, still won't be easy. This he knows.

 

The New Guy

When Shannon posted his first column on the GM Fastlane blog in late April, imploring Saab boosters to "be patient with me as I learn the ropes around here," the responses, many from longtime owners, got straight to the point. Typical comments: "Saab needs to find its future in the past." "Keep the quirkiness that Saab owners have come to love and expect, and resist the corporate 'parts bin' mentality." "Help the brand keep some of its unique identity. It goes way beyond the key on the console."

 

Uh oh. While it appears that a more coherent product strategy for Saab is finally emerging after nearly two roller-coaster decades under GM's stewardship, that troublesome word "quirky" still seems to be missing from the corporate vocabulary. Regarding the brand's well-known and much-loved idiosyncrasies, Shannon, a 25-year GM veteran, says, "I was trained that 'quirky' is never to be used."

 

Instead, the former Buick general manager is taking a more measured approach. With four all-new models in the next three years, Shannon's mantra is: Keep it simple, keep it Saab. Future Saabs will share global architectures with other GM products, but the brand will wrap more distinctive sheet metal around the hardware, with more Saab design cues inside and out, as well as specifically tailored driving dynamics, more horsepower and a renewed emphasis on safety and the environment.

 

Time Is Running Out

This latest game plan sounds brilliant — if only Saab weren't dangling on the ropes after hemorrhaging cash for all but two of the past 17 years. While GM Chairman Rick Wagoner and Vice Chairman Bob Lutz continue to publicly express their support for the brand, Chief Financial Officer Fritz Henderson is taking a more hard-nosed approach, telling reporters that Saab "has to get results."

 

The implication is that GM is prepared to take some drastic measures if Saab's managers are unable to stem the flow of red ink and sell enough vehicles at least to offset the cost of developing new products. Right now, Saab sells about 35,000 vehicles a year in the U.S., which is more than the brand moves in Sweden if you can believe it, but it's also about 90,000 units less than Ford-owned Volvo moves in America.

 

With the first of those new cars still 18 months away from U.S. showrooms, Saab's very survival in the interim will require an additional infusion of hundreds of millions of dollars — money GM can ill afford as it attempts to revitalize its flagging auto operations in North America and Europe.

 

Wagoner & Co. may be smarter — and Saab enthusiasts better served — if they put the brand up for sale, as Ford has done with its Premier Automotive Group. There are enough parallels between Ford's unhappy experience with Jaguar and GM with Saab that a spin-off is beginning to make more sense at the General's Detroit headquarters.

 

Product Blitz Is Coming

In the meantime, Saab's new models, including the next-generation 9-5 and 9-3, already are more than halfway through the development pipeline. According to Shannon, the next generation of Saabs will satisfy even the sharpest critics. When the new 9-5 arrives in model-year 2009, enthusiasts will recognize that "the looks, the driving character make it absolutely a Saab," even though it will share its basic underbody architecture with the Chevrolet Malibu and the Opel Vectra.

 

Shannon is particularly keen on the new 9-4X, a five-passenger crossover vehicle designed in Michigan and based on a new midsize architecture that could be shared by four or five other GM brands, including Chevy and Daewoo. Shannon describes the car-based crossover as "the spiritual successor to the station wagon," though he quickly adds that wagons won't fade entirely from Saab's future lineup. "We can tune it to ride and handle like a Saab," he says when asked how the brand will differentiate the 9-4X from its corporate siblings.

 

The so-called 9-1 (Shannon says the name has not been finalized) stirs the most passion from Saab's U.S. boss. He describes the car, which will share basic mechanicals with the next Opel/Saturn Astra compact, as "a true Saab that will be a replacement for the 9-2X." Shannon says the vehicle will have "an interesting body style...an iconic shape with a lot of design flair — kind of the opposite of sensible shoes." He adds: "But it will also have a good dose of utility. This is not just a toy — we don't want to do a generic bread-and-butter car."

 

Saabaru No More

More good news for Saab fans: There may be a performance-oriented 9-1 Aero targeted at the next-generation Subaru Impreza WRX (as opposed to being a near clone of the WRX, as the late 9-2X was) and the Mitsubishi Lancer Evo, with a high-output turbo four-cylinder under the hood and Saab's upcoming XWD Cross-Wheel-Drive system which will debut on the 2008 Saab 9-3.

 

As for future powertrains, Shannon says Saab "will have more bandwidth in turbocharged engines by then, from 200 horsepower to 300-plus." Advanced "clean" diesels, however, probably won't be seen in U.S.-bound Saabs until the next decade. And while Shannon anticipates that future Saabs might employ a version of the Chevrolet Volt's plug-in hybrid system, "that could be even farther down the road than diesels for us in the U.S."

 

On the downside, Shannon said there is no plan to resurrect the hallowed Sonett name any time soon on a genuine Saab sports car. As for the well-received Aero X concept, "as it stands, it will never see the light of day, but it will serve as a real inspiration" for future Saab products, including the new 9-4X and the next 9-3 and 9-5.

 

Kill or Be Killed

Until the new vehicles begin to trickle into U.S. dealers in early 2009, Saab will refocus its marketing on such core virtues as "responsible performance," safety and functionality, with innovative technology as a common thread binding everything together.

 

Shannon maintains that Saab "continues to fill a unique niche in GM's multibrand strategy in the U.S." And while Volvo, BMW, Audi and the premium Japanese brands remain its principal competitors, he insists that Saab does not — and will not — compete directly with Cadillac. Rather, "people who buy Saabs would never consider another GM product."

 

But it's by no means clear that Shannon can find enough of those non-GM buyers to keep Saab afloat in the States, at least until the new product wave hits these shores. Meanwhile, the question lingers: Will Saab loyalists come back to the brand in sufficient numbers, and will they generate enough positive buzz to lure newcomers to the fold?

 

If Shannon's bosses aren't satisfied with the results, don't be surprised to see GM follow Ford's lead with Jaguar: Pull the plug on the corporate life-support system and spin off Saab to the highest bidder.

 

 

So they put a guy from Buick, the most boring, sterile brand out there in charge and expect results for Saab. That would be like Keenu Reeves playing Spiderman.

[hogmeat]

That would be like Keenu Reeves playing Spiderman.

LOL WTF?

[SLegacy99]

Bye bye Hummer.

 

http://www.msnbc.msn.com/id/26876176/