[t4me]

From msnbc.com: "...GM and its new management team (led by GM veteran Fritz Henderson) get two more months to come up with a new restructuring plan, which Treasury officials believe needs to include the elimination of more GM brands. Chrysler, meanwhile, gets one more month to seal a deal that it’s already been working on with Fiat. If it succeeds, the new company will get $6 billion from the government; if it fails, the government is likely to walk away....But former CEO Wagoner’s dismissal -- which came as a surprise to industry insiders -- has left some critics wondering why the Obama administration is demanding the head of GM’s CEO, but not Bank of America’s or Goldman’s, etc."

So, is this a political power play (HEY NO DONKEY and ELEPHANT Perspectives - just GM talk please) or is the government serious about shutting down some GM brands - and how do you think that would work? Any chance this affects other lambda models?

What do you all think?

 

[admin]

I just don't know what to make of this. At first glance, it's difficult to understand why the play field isn't level. Like the article mentions, why force Wagoner to step down and not do the same for AIG and the big banks who have been bailed out to a far greater extent than GM. On the other hand, it's possible the Administration is privy to information that we don't have. I mean, who knows, maybe Rick told them in private he simply doesn't have the answers...?

 

[t4me]

>>From yet another updated msnbc.com report:
"With production already cut to the bone, GM will likely have to shed many of its brands and produce fewer models.
Many have argued, and I agree, that they could probably go right down to Chevrolet and Cadillac and that would be certainly manageable for them."
>>Also:
"Dealers were also pleased to hear the government’s promise to stand behind GM and Chrysler car warranties, hoping to ease worries of potential new car buyers that their dealer might not be around in a few years to stand behind those warranties."

 

[t4me]

Could the "new" GM actually lose the Buick, GMC and Saturn brands? Would they be sold off? Would those lambda models be manufactured by other companies?

 

[medman]

>>From yet another updated msnbc.com report:
"With production already cut to the bone, GM will likely have to shed many of its brands and produce fewer models.
Many have argued, and I agree, that they could probably go right down to Chevrolet and Cadillac and that would be certainly manageable for them."
>>Also:
"Dealers were also pleased to hear the government’s promise to stand behind GM and Chrysler car warranties, hoping to ease worries of potential new car buyers that their dealer might not be around in a few years to stand behind those warranties."

That's good for the U.S. for standing behind GM for the warranties, but what about CANADA??? I pick mine up this coming Saturday.....Hey Harper...step up to the plate!!!

Medman

 

[Narg]

I see this a expected. Sad to loose Wagoner though. He was not that bad, and the CEO doesn't have the control most people think they do. GM seems too top heavy, so I'd like to see some more "ousting"

I also don't see the "government controlling GM now" mentality. At least not any more than any bank would if they took the same hold of any other company. I think that whole mind-set is simply "news hour fodder" to sell more news and nothing more.

I am also very pleased with the warranty thing. Not that I've used the GM warranties much, knock on wood, but that does add to the piece of mind.

I also do not see the model removal idea as a real fix. GM showed for many decades that many models sell more than fewer models. There is no cookie cutter mold for people, even though GM has a mold for the cars. "less is more" doesn't apply to the general population and perceptions needed to raise sales figures. This is why Toyota now has Lexus and Scion (and others in other parts of the World). Adding to the portfolio makes them more marketable. Less options will mean less buyers.

 

[t4me]

As was mentioned in another thread, the "Warrenty Commitment Program" that the U.S. government has created to guarantee warrenty support on GM vehicles only applies to vehicles purchased during this 60 day+ restructuring period. So, as of this moment, all of us GM vehicle owners who have taken delivery prior to this week are not included in this "written" government guarantee. While it would have been less stressful for some "grandfathering" of previous GM purchases to be included, no one knows for sure what our warrenty future entails until we see what transpires during the future restructuring and/or bankrupcy proceedings.

 

[09Enclave]

True, I literally lost sleep last night thinking about this.  I've seen several posts that say warranties will not be affected, but it's the not knowing for sure that hurts.  I called Buick, and they said NO, the warranties would still apply to any vehicle that's still under the warranty period since purchase.  However, these folks, and the dealers seem to be the last to find out about the news, and even if they DID know, have probably been coached to say it's not true...so what to believe?

 

[t4me]

09enclave, At this point, I personally see no reason to worry over something I cannot control. It is too soon to even know how the "new" GM will look in it's final form, or even how long it will take GM to get there... I honestly do not expect that anyone at GM could commit to anything at this point. Enjoy your ride and remember that we all have put our money where our mouths are... We did not need no STINKING government inspired warranty to show our faith in THE PRODUCT (not saying I would not have taken it if it was offered). So stand tall and proud.

I will say this... I am thinking ALOT HARDER about holding off on the GMPP extended warranty. I would have LOVED the government to take this policy a step further and say they would HONOR any GMPP extended warrenties PURCHASED DURING THE RESTRUCTURING period. Think about how many folks might have given that a more serious look in light of the unspoken uncertainty that exists!

But with utmost seriousness, as a single-family income earner, I would never have been able to afford any other product on the market (for the options purchased) - and that would include the other lambda models as well. This was all part of the discussion my wife and I had prior to pulling the trigger. The warranty concern was something I covered with her, as well. After riding/driving this vehicle and seeing how the kids just love the vehicle, she (and I) had NO DOUBT that this was the right purchase at the right time (due to our car situation, that is) and will sleep very well because of it. So, hopefully you too can think about it in this light and find the positives to hang onto.

 

[OneLove19451981]

Well, I pick mine up on Monday, so I will be covered by the gov't thing and also by the GM Toal Confidence thing http://www.gm.com/total-confidence/?brandId=gm&src=van&evar24=vanity_gm_c so I'm not too worried at all. Anyone reading this forum who has not purchased their yet should read the GM Total Confidence website. It make me feel a little better about buying a GM vehicle in these times of financial woe.

 

[t4me]

To me, the government backing the GM Warranty is the big deal. Knowing what I know now, I would have waited to get that extra satisfaction. However, I did not know what I did not know and got the deal done as soon as I could make it work. If anyone is going to buy this ride, I would definitely recommend doing it within this government-backed 60 day period with GM (especially for those folks who might be looking at Saturn's). All the news articles are pretty consistent in quoting inside sources who say that the Fed's task force is working with GM's CEO Fritz to build at least one plan with a "good" GM that survives and a "bad" GM that goes bankrupt and/or is sold off. That "bad" GM supposedly would include Hummer and Saturn and all physical facilities that need to be closed, as well as any Union benefits that the government will not allow GM to be continued to be burdened with. In all press reports, Chevy and Cadillac are safe for sure. Buick is supposedly safe (at least internationally) since they are the BOMB in China (I never figured that one out). No talk whatsoever about the Pontiac brand and the GMC brand is only talked about as being the brand that "could hold the GM truck product line instead of Chevy". Only time will tell if any of these reports are accurate. I will be most interested to see what plan is produced within the next 60 days and also how it will affect the dealer networks out there. Guess we all need to stay tuned. By the way, any ideas if the government will get involved with discounts on in-stock inventory when the 2010's roll out?