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by brooklynbob on December 27, 2005
Everyone already knows all about the financial troubles that GM is in: overpaid workers that they are not allowed to lay off, horrendous retirement costs built-in to the cost of every car they sell, and lets not forget the cars.
While many plans have been presented that could possibly save GM (though not from anyone actually working at GM), I have not yet outlined mine. So here goes.
Two possibilities:
- Ditch Buick, saturn, and Pontiac. The recent Jeopardy debacle is proof enough that nobody cares.
- Keep all the divisions, but pare them down to the bare essentials.
Neither of these are new ideas. Why is GM not acting? If GM makes the kind of layoffs that are necessary to ensure the long-term profitability of the company, the UAW won't just sit idly by. There will be strikes. GM is afraid of this.
They shouldn't be. If GM announces a large enough cut of hourly workers, those who are left will realize that they are now easily replaceable if they go on strike.
Dorri Williams is a car guy who usually vents on If it's got an engine. . .
Permalink: My Plan For Saving GM
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Rating: 6.00 out of 4 vote(s) cast.
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Response from:
Jeff
(12/28/05 4:23am)
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They should scrap it and reorganize Chevy/GMC trucks into "GMTrucks". For those die-hard brand fans, they can sell a "GMC or Chevy bowtie badges" option.
GM needs to pare their product offerings down and focus on segments that it does well. Scrapping an entire line of trucks, SUV's and vans that compete with its Chevy line is a start.
I agree that Pontiac is redundant and Saturn has been tarnished beyond salvation.
Buick is questionable--they need to stop their futile attempts at attracting younger buyers and offering tarted up versions of things that Chevy sells like the SUVs, minivans, and crossovers. They should focus on affordable large sedans for those who don't want a four door sports car nor a luxobarge.
Finally, they need to think of more revenue streams. Get people to have their cars serviced at the dealer by offering free rentals. They already "sell" lots of their cars to the rental companies and Lexus and Infiniti do it as a perk, what is to stop GM from offering the same? Upping the warranty coverages would be a huge PR gain and would help their image tremendously. Sure, it would cost more but it would be worth it.