Saving the US Auto Industry

[classicman]

Always entertaining. Not always correct.

[tw]

Originally Posted by Brianna

*waves*
Hi, tw!!!!

Nothing like a sparkling glass full of cool Brianna.

[tw]

From the NY Times of 22 Nov 2008:

G.M. Pins Hopes on a Plug-In Car, 2 Years Off
Executives at General Motors, the largest and apparently the most imperiled of the three American car companies, are using the Volt as the centerpiece of their case to a skeptical Congress that their business plan for a turnaround is strong, and that a federal bailout would be a good investment in G.M.’s future.

In ads that ran this week, the company said of the Volt: “This is not just a car. It’s a vision of our future.” Another claimed that the vehicle would “completely reinvent the automotive industry.”

Hardly. The Volt is a hybrid with a battery charger. This is revolutionary? Even GM built a hybrid in the 1990s, and then killed it when George Jr advocated no innovation. GM will not innovate unless required by government regulation. Still cannot get a hybrid right after spending how many years developing a car that is still two years away? Anybody see that PBS show where GM tried to demonstrate the Volt - and the car would not move?

There is a long tradition in Detroit of relying on a single new model or technology as a silver bullet to quickly solve bigger problems. ... It is expected to cost about $40,000. ...

It plans to sell only 10,000 Volts in the car’s first year, or less than the number Prius cars sold by Toyota in October alone. And the Volt, roughly the size of a small family sedan, will cost around $15,000 more than a Prius.

One car that costs $15,000 more, that will not be sold everywhere in America, and will only sell a paltry 10,000 in the first years? This will save GM? Yes, GM executives are still living in a mythical world. No wonder Rick Wagoner said in mid November on Detroit TV, "GM is in the best shape it has been in 20 or 30 years."

Does anyone still foolishly think unions, Japanese competition, unfair trade, market conditions, or MBA created legacy costs are GM's problem? Those are only symptoms. GM's only solution to save GM is the Volt.

G.M. reportedly spent about $1 billion in the 1990s to develop the EV1, which it dropped after saying it could not make money on the cars. The EV1, which was available only in lease deals, sold for the equivalent of up to $44,000 but cost G.M. about $80,000 apiece to make. ... Only two years ago, G.M. promoted flexible fuel cars that run on E85, a blend of ethanol and gasoline, as the way to wean Americans off gasoline. ... In 2004, G.M. displayed a hydrogen-powered concept vehicle, the Hy-wire, at the Paris Motor Show, making similar promises that it would revolutionize the industry.

And 1999 GM Precept - their hybrid paid for by Clinton's government? All typical of management that does not drive.

Some years ago, newspapers would be under financial attack for reporting so honestly. Slowly, facts of total and complete mismanagement, especially in the last decade, are coming to light. Name a new and successful GM model or innovation in the past decade? None. MBAs spent massively. And every product was a flop: classic symptom of MBA management that believes innovation is created by throwing money at it ... like a grenade.

To show efforts to save the company, GM announced a sale of two corporate luxurious private jets. Why not all three? Rick Wagoner needs luxury, his high salary, and those bonuses that he is still scheduled to receive.

Why does GM need numerous private jets? GM corporate rules require all executives to fly in private planes because commercial airplanes are deemed too dangerous. Heaven forbid they should sit next to someone who drives a car.

If this was written in a novel, nobody would believe any MBAs could be this dumb. How to spell it: "employe".

[TheMercenary]

This is quite entertaining.

[tw]

Spin. GM announced that Rick Wagoner's pay will increase to be what it was in 2006 - $2.2million. That is a 33% salary increase. When did your employer give you or your peers a 33% salary increase?

Meanwhile, what they forgot to mention was his real paycheck. For example, when GM said his salary was lower with GM's lower expectations in 2007, his actual compensation increased 64% to $15.7million.

Did they forget to mention that part? Oh. But he is important. He deserved a 64% paycheck increase. Look what he has done for the company.

The average American income dropped 2% during George Jr's tenure. No wonder only the rich need a tax cut. Otherwise they - Rick Wagoner - would see their taxes increase too quickly.

When Lee Iacocca saved Chrysler, he was paid $1. Well documented, the higher an executive is paid, then the worse his company performance.

[xoxoxoBruce]

tw sounds like he's talking about an ex-wife.

[classicman]

I'd consider a bailout IF they fired the top 10% of their management. Consider! The entitlement mentality of these guys is sickening. SO much so that they actually thought the hearings last week were a mere formality - just show up and get free money.

[Pico and ME]

I wish they would do that with the financial companies. They are still going to pay off their execs millions. Wish I could get rewarded for failure like that.

[xoxoxoBruce]

Even if they fired the top 10%, I'd still be pissed they walked away filthy rich, after screwing the company and country.

[classicman]

Gotta start somewhere....

Oh and maybe we could investigate the shit outta them...except that would infringe on rights and stuff

[Shawnee123]

I have trouble telling the difference between role reversal and vacillation:

85% of all problems are directly traceable to the top 10% of managers?

[Pico and ME]

If the role fits....

[Shawnee123]

If the role doesn't fit...use vaseline.

[classicman]

Originally Posted by Pico and ME

If the role fits....

If the roll.... wait what?

[tw]

They went to Washington in luxery jets begging with hat in hand. They had no plans to save the company. Zero. Their only plan was, "Give us the money and the company will be fixed." as an MBA would do. Same problem that Ross Perot complained about twenty years ago.

Rick Wagoner said long before going to Washington that GM had no restructuring plans. When he went to Washington, he still had no restructuring plans. GM (last I heard) is still planning to introduce a 400 Hp Camaro this January. The company is still that stupid.

A responsible GM would already have plans to terminate two divisions. To eliminate about half of their SUV models. To have 20,000 Volts on the market next year. Oh. As demonstrated in the PBS TV show recently, the Volt broke down when it was to be demonstrated to PBS reporters.

Nissan Infinity took only 4 years and $0.8 billion to design a car that Nissan had never designed before. Why so quickly? Because engineers - not accountants - did the design. At the same time, GM took nine years and $8billion to design a car built previously - Saturn.

GM still does not have a functional Volt to show to reporters ... and no plans to restructure. More than 85% of these problems are directly traceable to that top management.