GM to file for bankruptcy

[Aussie Joe 0]

I never thought I would see the day when a company as massive as GM would file for bankruptcy. This report really spells doom and gloom for the car maker. I really hope this doesn't mean more jobs will be lost either in the US or on their other operations. Its tough, but it looks bad for allot of people associated with the brand. I have a good friend who works for Holden here (Holden is owned by GM) and he tells me everyday he is afraid that it will be his last with the company.

GM full story from News.com.au

[RadioGaGa 162]

I heard Balsillie wants to buy it and move it to Hamilton...

[prenny207 1]

Holden is a nice offering, and pretty much your main brand, correct? They've done a nice job on the Pontiac G8, which i hear may be dropped now, rather then being rebranded.... i think thats a big mistake.

I hope this mess doesn't hurt Holden too much.

[PH_Hockey2 4]

My Roommate has told me that the Pontiac brand will be dropped all together and he really keeps up on these types of things.

[DCott 0]

yup pontiac is out

[Chadd 916]

I never thought I would see the day when a company as massive as GM would file for bankruptcy.

Bankruptcy is just a restructuring process, it's not uncommon among large manufacturers.

[Juice_Slowjamz 0]

I never thought I would see the day when a company as massive as GM would file for bankruptcy. This report really spells doom and gloom for the car maker. I really hope this doesn't mean more jobs will be lost either in the US or on their other operations. Its tough, but it looks bad for allot of people associated with the brand. I have a good friend who works for Holden here (Holden is owned by GM) and he tells me everyday he is afraid that it will be his last with the company.

GM full story from News.com.au

It hasn't declared bankruptcy, yet. They're staring down the barrel of a June 1st deadline from the Feds to restructure or declare bankruptcy. With that said, they've been teetering on the brink for two years.

[K9 Unit 1]

I heard Balsillie wants to buy it and move it to Hamilton...

lol! that made my day....

gm's screwing up coz they got so many stupid brands...i'd say cut all the stupid ones like saturn and buick and just keep chevy and stuff lol

[Guitarmy 0]

Saturn is actually one of GM's decent brands. Mainly because they take European designed Opel/Vauxhall (also GM owned) and slap on a Saturn badge.

[RecLeagueHero 0]

Saturn is actually one of GM's decent brands. Mainly because they take European designed Opel/Vauxhall (also GM owned) and slap on a Saturn badge.

The problem with Saturn is there's too much competition among "value cars" for all of GM's brands to be viable. Chevy makes value cars, Dodge makes value cars, Chrysler makes value cars, Saturn makes value cars, and that's just internal competition. Outside you have VW, which is clearly the leader in trendy value cars, Ford, the Korean makers, and the Japanese companies. On top of that Volvo, BMW, and Mercedes have been producing more affordable models for years now. Brand new they might not be value cars, but in the used market they do compete for that type of buyer's dollar.

[Chadd 916]

Saturn is actually one of GM's decent brands. Mainly because they take European designed Opel/Vauxhall (also GM owned) and slap on a Saturn badge.

The problem with Saturn is there's too much competition among "value cars" for all of GM's brands to be viable. Chevy makes value cars, Dodge makes value cars, Chrysler makes value cars, Saturn makes value cars, and that's just internal competition. Outside you have VW, which is clearly the leader in trendy value cars, Ford, the Korean makers, and the Japanese companies. On top of that Volvo, BMW, and Mercedes have been producing more affordable models for years now. Brand new they might not be value cars, but in the used market they do compete for that type of buyer's dollar.

They all appeal to different market segments. For example, Dodge targets men with their marketing and design. There was some talk of Saturn spinning off and being bought by some of the brand managers and outside investors. The issue s largely one of market saturation and the oft repeated, but inaccurate stigma that American cars are garbage. I was looking at a few different models of American cars before a great deal on a used FJ fell into my lap.

[RecLeagueHero 0]

Saturn is actually one of GM's decent brands. Mainly because they take European designed Opel/Vauxhall (also GM owned) and slap on a Saturn badge.

The problem with Saturn is there's too much competition among "value cars" for all of GM's brands to be viable. Chevy makes value cars, Dodge makes value cars, Chrysler makes value cars, Saturn makes value cars, and that's just internal competition. Outside you have VW, which is clearly the leader in trendy value cars, Ford, the Korean makers, and the Japanese companies. On top of that Volvo, BMW, and Mercedes have been producing more affordable models for years now. Brand new they might not be value cars, but in the used market they do compete for that type of buyer's dollar.

They all appeal to different market segments. For example, Dodge targets men with their marketing and design. There was some talk of Saturn spinning off and being bought by some of the brand managers and outside investors. The issue s largely one of market saturation and the oft repeated, but inaccurate stigma that American cars are garbage. I was looking at a few different models of American cars before a great deal on a used FJ fell into my lap.

In a robust market, you're right. They all have market groups they appeal to and when times are good there are enough buyers to support them. In lean times there are just too many brands and people will go outside marketing demographics for deals. American cars aren't junk, but in the past 15-20 years American makers have largely given up the fight for car sales to the European and Asian companies to focus on SUV's and trucks. Which worked fine until they were hit with the gas price disaster and growing environmentalism. The bottom line is industry needs to focus on sustainable market instead of expanding to the limits and crashing.

[Chadd 916]

In a robust market, you're right. They all have market groups they appeal to and when times are good there are enough buyers to support them. In lean times there are just too many brands and people will go outside marketing demographics for deals. American cars aren't junk, but in the past 15-20 years American makers have largely given up the fight for car sales to the European and Asian companies to focus on SUV's and trucks. Which worked fine until they were hit with the gas price disaster and growing environmentalism. The bottom line is industry needs to focus on sustainable market instead of expanding to the limits and crashing.

They could make a profit on SUVs and trucks, unlike economy cars. You can't compete with people that are paying half or less of the labor costs to make vehicles. You put a Chevy logo on a Kia and it gets trashed for lacking features or being shoddy workmanship. Put a Kia logo on a Cobalt and it's an excellent vehicle for the price and something American car buyers can't match. If a foreign car doesn't include every safety feature under the sun, it's an economical vehicle and you can't expect everything. If an American manufacturer does the same thing, they're cutting corners at the expense of safety.

[Hockeyman11385 1]

The unions killed the auto companies.

[RecLeagueHero 0]

They could make a profit on SUVs and trucks, unlike economy cars. You can't compete with people that are paying half or less of the labor costs to make vehicles. You put a Chevy logo on a Kia and it gets trashed for lacking features or being shoddy workmanship. Put a Kia logo on a Cobalt and it's an excellent vehicle for the price and something American car buyers can't match. If a foreign car doesn't include every safety feature under the sun, it's an economical vehicle and you can't expect everything. If an American manufacturer does the same thing, they're cutting corners at the expense of safety.

Which is vaild, and gets to the heart of both sustainable market and Americans learning that if we ever want to make things again without resorting to allowing slave labor here we need to learn to pay a little more for things and do with a little less. The unrealistic demands of labor unions are a big part of the reason American industry is dying and a big part of the reason why the unions themsevles are dying. You also must consider the American consumer's absolute refusal to pay a little more for locally made products when cheap crap from Asia is readily available. End of the day though, the American car companies simply haven't marketed cars and not just at the economy level. Even at the mid-range and luxury level American auto makers haven't pushed their products, or put the time into them, that the compeition has.