What Do The Massive Changes At GM Tell You About The Health And Future Of The Automaker?

Although it is sad to see, the cut to white collar jobs speaks to the need for GM to restructure and right size its business. This is about corporate strategy and making the right products. 6-speed transmission plants were closed and car making plants were closed. No government money was going to keep a plant open this time. The market expects GM to be healthier and stronger due to these changes and they are likely right. The plant in Oshawa has been making cars for over 100 years and dates back to days of McLaughlin Buick before they were bought my General Motors. Needless to say, there will be plenty of plants available for the Chinese to pick from when they decide to build cars in the USA.

the writing was on the wall when gm chose to shut pontiac in favor of buick, because... CHINA.
i just see them washing hands with the US market and leave it to the real US manufacturer's like Toyota and Tesla.

They are planning on selling considerably fewer cars in the future. Especially disappointing is Cadillac. They change direction more frequently than a Roomba. The CT6 was a flagship, no it isn't, the new Escala will be the flagship; no, it may be a crossover. Now the CT6 is discontinued in the US. Cadillac will be large pick-up based SUVs, Chevy based crossovers and two value based cars. A complete surrender.

Truthy - they did not say that the CT6(Which is also produced in China) would no longer be available- nor did they say that about the Cruze (Which is also produced in Mexico) - nor the Chevy Impala and Buick LaCrosse (Also built in China).

ALl they said was that they were closing the American Plants in which those cars are currently made. And while it does make sense based on poor sales(But ALL Cadillac sedans hardly sell) - it ignores the obvious. GM has already announced the Vss platforms - Four all encompasing platforms from which ALL future GM vehicles will be built.
The first use of these will be in the new Cadillac Vss-R platform from which ALL future GM REar Wheel Drive Sedans will be based - as well as the Camaro -and they are spending the money to convert the Lansing/Grand River plant to this platform. WHat I see is underutilization in Both CT6 assembly lines - and a car that eventually was going to move off the current platform anyway at Hamtramck/Detroit. So - the OBVIOUS thing to do would be to import the few thousand CT6 cars that sell in the next two years from China - while waiting for the Vss-R Plant to be ready to take that vehicle on after the introduction of the CT4 and CT5.

THe same is true of the Front WHeel Drive Platform - the VSS-F - which will base all GM front wheel drive cars and many Crossovers. Once they have a plant that can build ALL of the Malibu-Impala-Cruze cars on the same line - they can import them from China until that is available.

WHile this shows a real reliance on Vehicle Assembly OUTSIDE the usa - one must also remember that ALL of the worldwide plants will have to either migrate to the new platforms or be closed.

Actually, the word is that the CT6 will in fact not be available much longer in the American market.
The Impala's death is one dealers can easily support as it does not sell and dealers haven't wanted it for some time.

There is an old Chinese curse "May you live in interesting times!" The auto industry is living in interesting times...increased competition, slowing demand in old markets, growing demand in new markets, electrification, autonomous driving, connectivity, car sharing, Uber, over capacity, greater regulation. huge capital demands, increasing interest rates, tariffs, etc. Great uncertainty. Survival of the fittest. Who will fail and who will succeed? For certainty there will be further industry consolidation. GM is vulnerable, knows it and is throttling back to hopefully preserve precious capital needed to throw at all the change issues.

Although I understand the sentiment, I disagree. The US has very few large scale manufacturing plants that are designed and engineered in the US. We need that engineering ability in the US and it takes a certain minimum viable options for people to get degrees and pursue careers in large scale manufacturing. I know some have pointed to Honda plants and Nissan plants as substitutes for GM plants, however those are not designed and engineered in the US, we simply screw them together, it is not the same. I think the bailout should have had the requirement that the entire top level management team be replaced by proven performers, revise the union/management relationship to make unions more responsible and have a bigger stake in ensuring quality products are going out the door and that management is listening and taking action on recommendations from the front line workers.

It was obvious that it was coming and no amount of false promises from the Donald Trump Coolaid was going to change the current buying habits of Americans. The stark reality is that gas prices are still relatively low and people in this country simply like larger vehicles with more cargo capacity. Only SUV's and Crossovers can fit this niche completely. Further the Japanese and the Koreans still make a better product in the sedan and compact car ranges than GM, Ford and Chrysler. Over the next 5 years the far east may abandon sedans and compacts as well. Electric vehicles will negate the concerns of poor fuel mileage by gasoline engines. I just read this morning that Porsche has a new 800 kilowatt(I believe) supercharging system that will take but 4 minutes to extend range to 62 miles and 15 minutes to an 80 % charge. Further their batteries will over a 600 mile range. The fact is that this technology will trickle down to more affordable electric vehicles before long. Next year VW will have 2 electric vehicles on the market and a $23K EV vehicle on the market by 2023. That's going to dramatically change the affordability of this vehicles. Other companies will have to follow suit quickly. You know GM is going to be at the for front with VW if not soon after. GM is not gonna go down this time. As PUGPROUD says its survival of the fittest.

Q = What Do The Massive Changes At GM Tell You About The Health And Future Of The Automaker?

MrE30 A = That GM management is proactive and that the US automarket is changing.

Next thing to come - dealer/retailer consolidation and buy-outs. Dealer network is not sustainable in its current form.

Since there are apparently so many auto retailer owner/employees on this site, Autospies should ask questions about the status of dealer/retailers in the respective markets. THAT would be an interesting/useful question

Dealerships earn their living off of service. They are also on the ground to offer subscription and rental services, the alleged future. Love them or hate them, they are not going away.

Automotive dealers/retailers are clearly part of the American landscape (and the legal landscape for that matter).

Although the general public is thought of as "customers" of the automakers, if you consider the supply chain - independent dealers are really the first "customers" of automakers.

Just like any business, when "customers" are analyzed, a rule such as the 80:20 rule ALWAYS surfaces - usually a small portion of customers (i.e. independent dealers) are the best/most profitable and the rest are not as lucrative). Every manufacturer knows who the best dealers are and the worst. To survive, automakers will need to nurture the best and try to dump the worst ones (who will usually cost them money).

Dealers are here to stay - that would be the BEST dealers.

GM should payback part of the bailout we, the taxpayer gave them in '08.

Then they can move forward with restructuring.

I also think GMs all in on autonomous vehicles is Very High Risk because the technology is years away...!

On the dealership note... They make the most money on... Used cars!!
I know... I used to work there.

from and sale POV that is true, however when you take into account all the other shenanigans for new cars there is a big difference in triple net and MSRP. also the most money comes from service of shitty vehicles. the EV's will require a lot less of just because there are less moving parts.

GM is readying itself for a merger or an acquisition.

@MD- So in 10 years time there will be Toyota, VW and then a bunch of Chinese led partnerships with all other major makers?

Consolidation of major automakers is going to be BRUTAL.

Toyota/BMW/Lexus/Subaru/Mazda

Mercedes/Nissan/Infiniti/Mistubishi/FCA (American brands)???

GM/FCA (American brands)

Ford/VW

GM and the American part of FCA probably looks better to GM these days. Since GM shot itself in the truck market RAM looks a lot better. They could sure use the Jeep lineup. They even get a minivan! Problem is these moves that GM is making look like they don't believe the current automobile business has much of a future. So they are gearing up for a very different world. In that case merging with an existing firm makes little sense. If you have a shitty business the last thing you want is a bigger shitty business.

The auto industry is planning on a significant reduction in sales as not only autonomous vehicles, but ride sharing and urbanization will all contribute. GM may be ahead of the curve, but this strategy does not result in memorable cars.

VW should be really scared with all of its redundancies. The American side of FCA is desirable and the Italian side is garbage, someone will buy Jeep/Ram/Dodge. Nissan has a chance if it can ditch Renault. PSA is in deep caca with 4 redundant brands.

GM should be Chevrolet/Cadillac only in the USA.

Those of us who like memorable cars and driving may be a dying breed. We'll have to resort to track days to enjoy a vehicle. The car=appliance crowd is winning with governments around the world aiding them.

More than car as appliance, car as a service crowd. Its going to change the dynamics of car ownership, if at all for some folks. Some folks might not need a second car. Families might use a ride share service/subscription depending on trips. Maybe having a cool sportscar might be more practical for a single person who only needs a service for specific errands. The car culture will change permanently, and the old companies will die/merge/ or adapt.

maybe .. maybe.. a corvette,
there is used car guy in my neighborhood who has the new red/black stingray, but next to it is his yellow solstice gxp which looks better.

To the above I was referring to the factories not the cars themselves. Also not every product Honda sells in the US is engineered in the US. Many engines, suspensions etc... are used globally and likely engineered in Japan. Honda like most global companies has R&D facilities around the world, even then most of the core engineering is likely performed in the home country of the company and almost certainly the engineering required for the large scale manufacturing plants.