This CAN'T be good!

too fat...get rid of Pontiac and Buick to slim down. File Bankruptsy to avoid paying enourmous amount of money to UAW.

too fat...get rid of Pontiac and Buick to slim down. File Bankruptsy to avoid paying enourmous amount of money to UAW.

the bloated unions are wrecking this company and removing any flexibility it has in making something good.

I think the problems with the US auto industry is just indicative of the decline in the American economy. It is a process that has been going on for many years and each time there is the cycle (the auto industry has always been cyclical) the true results are reflected in market share. There was a time when the GM commanded nearly 50% of the north American market. With each cycle the overall market share declines. The reasons are pretty simple. The American auto industry has always been an industry that promotes volume over value. It is deeply ingrained in all aspects of the corporate culture and during the good years it served the companies well. The cars function exactly as they were designed to, that is they ran ok for the five or so years before the warranty ran out and at the end of the five years the companies expected and people did buy new cars. Often, the new car was the same old model with minor alterations for the new year, or they would try to get people to "up grade" from say a Buick to say a Cadillac which again was the same basic car with relatively minor differences in styling and other amenities. People brought into this concept for years and even today the same basic idea is practiced through out the auto industry. The problem is multifaceted but some basic elements are a change in the American economy and real competition. Today’s economy is simply not secure enough to warrant such big investments every few years. Factor in the desire to sell complicated gadgetry at the expense of basic reliability with competition that focuses on good fundamentals and you have the current recipe for disaster. I don't think that the GM's and Fords of the world will be gone tomorrow instead I think we will be having this same debate in 10 or 15 years with the companies then clinging to 5 percent of a market share that at one time they both commanded 80 or more percent of.

I think the problems with the US auto industry is just indicative of the decline in the American economy. It is a process that has been going on for many years and each time there is the cycle (the auto industry has always been cyclical) the true results are reflected in market share. There was a time when the GM commanded nearly 50% of the north American market. With each cycle the overall market share declines. The reasons are pretty simple. The American auto industry has always been an industry that promotes volume over value. It is deeply ingrained in all aspects of the corporate culture and during the good years it served the companies well. The cars function exactly as they were designed to, that is they ran ok for the five or so years before the warranty ran out and at the end of the five years the companies expected and people did buy new cars. Often, the new car was the same old model with minor alterations for the new year, or they would try to get people to "up grade" from say a Buick to say a Cadillac which again was the same basic car with relatively minor differences in styling and other amenities. People brought into this concept for years and even today the same basic idea is practiced through out the auto industry. The problem is multifaceted but some basic elements are a change in the American economy and real competition. Today’s economy is simply not secure enough to warrant such big investments every few years. Factor in the desire to sell complicated gadgetry at the expense of basic reliability with competition that focuses on good fundamentals and you have the current recipe for disaster. I don't think that the GM's and Fords of the world will be gone tomorrow instead I think we will be having this same debate in 10 or 15 years with the companies then clinging to 5 percent of a market share that at one time they both commanded 80 or more percent of.

Get rid of the UAW..... Problem solved!!!...

Get rid of the UAW..... Problem solved!!!...

I agree that GM needs to find some way to lower the burden of healthcare costs, both to current employees and retirees. The NY Times said they pay out about 89 BILLION dollars a year in just health care costs, some of that to their former retired employees. Cut some of that burden (which will only get worse over time) and maybe things will turn around.
Otherwise, the new models (the totally new or redesigned ones) are better cars than ever before, mostly much safer and reliable. I think they got the idea about three years ago that things were going to start heading downhill. And over the next two years, GM will probably introduce a slew of new vehicles that will compete head to head with Japanese and German counterparts, or at least be much more desireable than current models. It just takes a long time to move from concept to production, and if it gets rushed, things can go bad, which is exactly what they are trying to prevent with the Solstace.
As someone said, it's all cyclical. Like Dialmer Chrysler from it's junk status a few years ago, GM will probably find a way to get ahead again.

2004 Consumer Reports on cars...You don't have to wonder why there are so many American cars being unsold in U.S. However, American cars are better built than European cars since 2003 on the average!
--------------Sporty Cars-------------------
Acura RSX -------------------Chevrolet Corvette
Honda S2000---------------- Mercedes-Bens SLK
Mazda MX-Miata----------- Mini Cooper
---------------SUVS-------------------------
Acura MDX -------------------Cadillac Escalade
Honda CR-V -----------------Chevrolet Blazer
Honda Element--------------Chevrolet TrailBlazer
Infiniti FX ----------------------Ford Expedition
Lexus RX300-----------------GMC Envoy
Mitsubishi Montero---------Hummer H2
Mitsubishi Montero Sport--Jeep Grand Cherokee
Nissan Pathfinder-----------Land Rover Discovery
Totota 4Runner(V-8)--------Land Rover Freelander
Toyota Highlander-----------Lincoln Navigator
Toyota Land Cruiser-------- Mercedes-Benz M-Class
Toyota RAV 4----------------- Oldsmobile Bravada
----------------------------------- Saturn VUE
------------------------------------ Toyota 4Runner (V6)
------------------------------------ Volvo XC90
-----------------Minivans-----------------------
Toyota Sienna----------------Chevrolet Astro
------------------------------------GMC Safari
-----------------Pickups------------------------
Toyota Tundra-----------------Chevrolet S-10 (V6,4wd)
--------------------------------------GMC Sonoma(V-6,4wd)
---------------------------------------Subaru Baja

American cars surpassed German inferior crap cars sold in U.S. Most intelligent and well educated folks already knows this and are more opt in purchasing Acura, Infinti or a Lexus.

2004 Consumer Reports on cars...You don't have to wonder why there are so many American cars being unsold in U.S. However, American cars are better built than European cars since 2003 on the average!
--------------Sporty Cars-------------------
Acura RSX -------------------Chevrolet Corvette
Honda S2000---------------- Mercedes-Bens SLK
Mazda MX-Miata----------- Mini Cooper
---------------SUVS-------------------------
Acura MDX -------------------Cadillac Escalade
Honda CR-V -----------------Chevrolet Blazer
Honda Element--------------Chevrolet TrailBlazer
Infiniti FX ----------------------Ford Expedition
Lexus RX300-----------------GMC Envoy
Mitsubishi Montero---------Hummer H2
Mitsubishi Montero Sport--Jeep Grand Cherokee
Nissan Pathfinder-----------Land Rover Discovery
Totota 4Runner(V-8)--------Land Rover Freelander
Toyota Highlander-----------Lincoln Navigator
Toyota Land Cruiser-------- Mercedes-Benz M-Class
Toyota RAV 4----------------- Oldsmobile Bravada
----------------------------------- Saturn VUE
------------------------------------ Toyota 4Runner (V6)
------------------------------------ Volvo XC90
-----------------Minivans-----------------------
Toyota Sienna----------------Chevrolet Astro
------------------------------------GMC Safari
-----------------Pickups------------------------
Toyota Tundra-----------------Chevrolet S-10 (V6,4wd)
--------------------------------------GMC Sonoma(V-6,4wd)
---------------------------------------Subaru Baja

American cars surpassed German inferior crap cars sold in U.S. Most intelligent and well educated folks already knows this and are more opt in purchasing Acura, Infinti or a Lexus.

Todd is right about making cars that people actually want to buy. This was one of the main principle goal of Toyota from its inception.

Read this:
#1 FACT: If anyone truly knows about Toyota it is an extremly rich company.

Toyota was worth more than GM, Ford, and Daimler Chrysler combined. And Toyota probably could buy GM outright right now with the operating profit it made last year ALONE-roughly $16 billion. <--reported by Angus Mackenzie.
#2 FACT: Toyota begins to chase down that 15% share of the global market: Lexus now has its own design, development, and engineering resources and is being sold as a brand in its own right in Japan; new diesel engines and a new low-cost small car, the Aygo, will accelerate sales in Europe; hybrid power trains are being pushed upmarket to become a premium vehicle technology; the site of a seventh North American assembly plant will be announced by the end of teh year; and plans are already in place for an eighth. Even the Toyota Formula 1 team is looking seriously competitive this season. Toyota's already achieved plenty. But I get the feeling we ain't seen nothin yet. <--excerpt from the author.
It was in late 80's when Toyota had so much cash in their pocket..They could have believe it or not wiped out many auto industies including G.M. by selling Toyota product at a such low price that others could not possibly compete. This of course came with millions of loss to Toyota but having enough funds to keep losing the money from each Toyota cars they would sell around the world..Toyota did a math and result was astonshingly that they could still have survived for next 10 years. In which by that time..very few Auto manufactueres would even see the light of the day. However Toyota didn't opt for this and kept piling cash in their account. Presently Toyota have enough cash to buyout virtually all other car manufacturer whether in N.America or Europe! This is the company that are making roughly $16 billion dollars in profit per year! I can't tell you how much they have stashed away since late 80's but can only imagine. In conclusion, ppl may make smart remarks or copy cat this or that...To Toyota folks...either way, war was won ever before battle started!

Todd is right about making cars that people actually want to buy. This was one of the main principle goal of Toyota from its inception.

Read this:
#1 FACT: If anyone truly knows about Toyota it is an extremly rich company.

Toyota was worth more than GM, Ford, and Daimler Chrysler combined. And Toyota probably could buy GM outright right now with the operating profit it made last year ALONE-roughly $16 billion. <--reported by Angus Mackenzie.
#2 FACT: Toyota begins to chase down that 15% share of the global market: Lexus now has its own design, development, and engineering resources and is being sold as a brand in its own right in Japan; new diesel engines and a new low-cost small car, the Aygo, will accelerate sales in Europe; hybrid power trains are being pushed upmarket to become a premium vehicle technology; the site of a seventh North American assembly plant will be announced by the end of teh year; and plans are already in place for an eighth. Even the Toyota Formula 1 team is looking seriously competitive this season. Toyota's already achieved plenty. But I get the feeling we ain't seen nothin yet. <--excerpt from the author.
It was in late 80's when Toyota had so much cash in their pocket..They could have believe it or not wiped out many auto industies including G.M. by selling Toyota product at a such low price that others could not possibly compete. This of course came with millions of loss to Toyota but having enough funds to keep losing the money from each Toyota cars they would sell around the world..Toyota did a math and result was astonshingly that they could still have survived for next 10 years. In which by that time..very few Auto manufactueres would even see the light of the day. However Toyota didn't opt for this and kept piling cash in their account. Presently Toyota have enough cash to buyout virtually all other car manufacturer whether in N.America or Europe! This is the company that are making roughly $16 billion dollars in profit per year! I can't tell you how much they have stashed away since late 80's but can only imagine. In conclusion, ppl may make smart remarks or copy cat this or that...To Toyota folks...either way, war was won ever before battle started!