Despite General Motors'
problems, the company has affirmed, reaffirmed and
swore on its life that the
Volt would hit the highway in 2010 come hell, high water or insolvency. That said, we reckon coming through on that vow is going to get a lot tougher without a few more billion from the United States Energy Department. You see, GM had applied for $10.3 from the entity, and $2.6 billion of that was to be set aside for building the all-electric sedan and two derivatives of it (as well as a third hybrid model, we're told). Unfortunately for it, all that cheddar is being held up due to its inability to pass a "financial viability test in order to simply survive." Not surprisingly, GM is assuring the world that the government's final decision won't stop the Volt from going on sale this November, but it also said that bankruptcy wouldn't be needed just a few months ago. Ahem. [Warning: read link requires subscription]
posted April 13th 2009 12:36PM
Game over GM
GM = Greedy Motherf&^*#&*!
Such a great idea, buying a first gen car from GM. How many people are going to die in this thing I wonder. You'll have first responders to an accident looking at people wondering around covered in battery acid like the gang member that just got covered in nuclear waste in robocop, all the while the garbled OnStar voice telling everyone to remain calm sparks fire and everything explodes.
"A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one."
From what I understand they are having issues with the battery technology. GM did screw up, they got GREEDY and abandoned the EV-1 to focus on, p/u trucks. I can not believe that will all the smart people at GM and even going through the 1974 gas crunch no one thought to think ahead 10 years. They could have kept the technology growing if they kept the EV-1 but no they got greedy. They make mediocre cars while the top executive rake in hundreds of millions in salaries and bonuses. I can't even fathom that kind of money. Imagine getting a nice fat $40M dollar check as a bonus! What for? Sales have been declining for 10 years and the cars were getting marginally better but still not as good as their rivals.
The Volt will never see the light of day, and if it does not with a GM badge.
does anyone else find it funny that Honda is more american then GM and Ford combined. Just throwin that out their.
What? by sending their profits overseas to Japan?
Actually no. Honda uses more american parts then these so called american cars. About 70% of what goes into a GM Ford or Dodge (give or take a few) is from overseas. It's their way of saving money. Ford and GM mostly just assemble here in the states. Where do you think all the parts come from. Honda actually manufactures most of their parts here in the US. Honda is actually helping America where GM and Ford are taking our bailout money.
@Gurg:
Exactly.
Hmm. I'm feeling we need to absorb GM into our system,nationalize it for some time as a nationalized corporation. We need to grand unto Ford any tax benefits that we give GM, so that GM would not have an unfair advantage from the competitive standpoint.
I would also give Ford the option of technology sharing and co development. We could nationalize some technological development on the backend as long as we still have the companies sell their own takes on it on the front end, that would leave Ford relatively untouched,and again, it would be their own initiative.
I am very proud of Ford, and i really don't like them. They have survived and made most of the changes on their own. GM got fat and Chrysler has just been a mess.
Just wanted to say i got the 2004 Impala at an auto auction recently and i'm really really happy with that. I would like to see the american manufacturers look into cutting weight, we have the engineers. Still, that's a nice car, have a Buick Skylark from 96 still running well here and that car has great handling, mileage, and sound. Interior has some issues but it's the dash build and not the materials.
Well here comes the chance for the American auto industry to start over, evolution breeds smarter players.
Well said
Reading these comments, I find that I am amazed. Why is it that Americans love to see other Americans fail? Where are all those Uber patriotic Americans now? Sure GM made some mistakes - all auto manufacturers are suffering and many foreign companies have received bailouts from their governments too - but why does any American want to see one of the last American manufacturers go bankrupt? GM employs tens of thousands of people, and the impact of their failure will affect thousands, if not millions more. Are you jealous because they had a strong union and were able to negotiate a living wage? Will you feel better about your crappy job when they have lost theirs? Will their misfortune make you feel better about yours? Do you know the story of how Toyota became the largest auto manufacture in the world? After WWII the Japanese government kicked all foreign automakers out and took a company called “TOYODA AUTOMATIC LOOM WORKS” and nurtured them until they were able to figure out how to make and sell cars in America. It wasn't easy ("made in Japan" used to mean "cheap imitation" and second-rate quality to most Americans until the '50s) but they figured it out. I realize GM needs to change its ways, but it would be a tragedy for them to go out of business, because once the American car is gone it will never come back, all we will have left are foreign cars. Will you feel like GM finally was taught a lesson? I suppose you'll feel better because they got what they deserved, and when no one has a good job in America, you will have got it too. How come “too big to fail” only applies to companies who don't make anything? Companies who robbed and stole their way to an economic meltdown? Free money for BIG BANKS=good. Loans for American workers = BAD. Do yourself a favor and stop reveling in others misfortune. "A rising tide lifts all ships".
finally someone commenting with common sense.
I don't know about other people but for me i realized that in America we do things very well. In pretty much everything except the auto industry. Look at NASA. We're the only country in the world that has a reusable space shuttle and it looks good. We are the primary builders of the ISS. Basically, we completely destroy any other country in the space industry. Look at other tech industries. We have Microsoft, Apple, Google, Palm, etc (silicon valley). These companies have all brought tons of innovation and continue to stay on top of their respective industry. And then look at the auto industry. For the last 20 years or so, it's been an embarrassment and now everybody knows and has gotten the mentality stuck in their heads that American cars are bad. So think about that. Is it because we lack intelligence or innovation to make great cars? No. (look at NASA, silicon valley, etc) So what is it? I'm sure it's a number of things, like bad decisions here and there and unions, etc. But i think a lot of it is greed. The US automakers knew they had the upper hand in America 20 years ago so they threw quality out the door to make bigger profits. That's what frustrates me so much about them. Because I know we can compete with European and Japanese companies easy, if we wanted to. But they just simply didn't want to. So yes, I'm gonna be sad to see GM go because I'm an American and I don't like to see businesses go under. But at the same time, I hope it teaches them and all other car companies in America to quit settling for less than the best when making cars.
Never come back? Um...no, it would be more of a starting over thing. Build great cars with great craftsmanship, that people want. Oh, and pay your employees a wage that you can stay in business supporting.
I would think ALL Americans are proud of this countries auto heritage and hope we always have a leading automotive future. I don't know many that would say there is much to be proud of these days though. Maybe the Corvette and Cadillac. Myself, I would add Viper and Wrangler.
Truth is, even if you have NO interest in EV cars, Tesla has the brightest innovation we have in the industry right now.
GM needs to go bankrupt and divest themselves of the ludicrous union contracts. They need to consolidate instead of creating the same basic car under 3 brand names. They need to focus on building stuff that people want. There is a reason that people buy more Hondas and Toyota.
Bottom line is that GM needs to get lean, and build good stuff.
Bankruptcy does not mean closing their doors, it does not mean that everyone gets fired. It means that GM reorganizes, reworks the product lines, and that new contracts are negotiated and a lot of people take pay cuts.
riddle me this. How is it that the employees at the Honda plants in the US make less money than the UAW workers at GM, yet Honda utilizes, on average, more American labor, and builds higher quality cars? The UAW is the primary issue hurting GM. It's not the only issue, but it's the biggest one. The UAW has not only bitten the hand that feeds it, it has mauled it up to the shoulder and started on the legs...
FYI - Toyoda Automatic Loom Works established its automobile department in 1933. Years before WWII, not as a result of WWII. Perhaps the Japanese realized they needed some home grown industries to help their economic revival instead of looking to boost profits of other coutries. This sort of isolationist policy has its merits.
Regardless of how you feel Toyota America employs many Americans in their American facilities in various positions from sales, mechanics, assembly, accounting, engineering, lawyers, trucking, etc.
Americans want to see GM go bankrupt for 2 reasons, IMHO.
First, as Americans, we believe in the market ideals that lead America to be a leader in almost every industry. We believe in capitalism and we believe that failing companies should fail to make way for better, smarter, more competitive companies. If GM dies, the American car industry certainly DOES NOT die with it.
Second, GM is ravaged by it death grip that is union labor contracts. Bankruptcy would provide for a means for GM to finally rid themselves of these ridiculous wage rates and maybe have a fighting chance for survival.
The car illustrated in this article has an uncanny resemblance to the European Honda Civic in my opinion...
If you look at engadget's electric car tag you'll see there are all sorts of companies making electric cars, from big companies like Mitsubishi to small companies like Fisker. Why is it GM needs $2.6billion to do what Fisker has done with a tiny fraction of that amount? If GM can't make a car with less than $2.6billion it's very clear that the company is broken beyond repair and should be allowed to die peacefully instead of giving it more money to waste.
It's called scale. GM will build more Volt's in a day (when they're built) then Telsa has build so far. People keep forgetting building a "kit car" (Tesla) is not super hard. Tell Telsa/Fisker to build 200K cars and see how much money they would be asking for. Just the presses to stamp parts in a car take months of lead time to be custom made and cost millions of dollar each.
Despite that profits are still ending up in Japan
The reason I want GM and most likely Chrysler, fail is because of the auto unions. Their greed is what causes "American" cars to be so expensive, even though the quality sucks.
So let me get this straight... 1st of all you want GM and Chrysler to fail - why not FORD?- and it's because of the UNIONS? So do you hate all American workers? Or just the ones who make a good living by working? So I suppose you understand that the only reason you have any work related benefits is because of unions. They fought for your rights so you could take them for granted, the 40 hour week, overtime, safety regulation, workman's comp, lunch breaks, etc, etc. I suppose you think that companies would have gotten around to treating their workers fairly on their own, kind of a self regulating system? Sounds a lot like the banks and speculators regulating themselves doesn't it? That worked pretty well didn't it? I suppose you have first hand knowledge of how evil unions are right? Most European countries have strong unions and they seem to do pretty well. If GM didn't have to worry about the cost of health care ( i.e. Universal health care just like any other industrialized country where your favorite non-American cars are made.) they could save a ton of money manufacturing cars in the States. I don't know where you work, but I hope the rest of America isn't looking forward to you losing your job.
Ryan, the unions did a lot of good in the past. We have all sorts of labor laws now that we probably wouldn't have otherwise. The problem is that the Unions got greedy and now they are of a size, and control more power than the "big bad car companies". The unions have become the big bad corporations they fought against in years past. They use their power and political influence to force bad contracts on the companies and to increase their own wealth and power. I believe everyone deserves a fair wage, but the pay and benefits that UAW workers get, relative to the skills required and services rendered are completely out of touch with reality.
I love to see companies that deserve to fail, fail. I don't see the mom and pop who opened a bakery that failed going to Congress to ask for money. If I f' up at my job - I deserve to be fired - plain and simple. And if I make millions of dollars while f'ing up an entire company - I deserve heavy fines (everything I make and possibly more) as well as jail time for ruining the livelihood of so many dependent people who don't make 6 or 7 or 8 or 9 digits a year.
Of course I also hate Unions as well. I had the displeasure of working in a shop run by the UAW mob when I was a younger lad. It made sure that people pushing brooms who were often caught sniffing glue in the assembly room couldn't be fired and made $14 an hour for refusing the education tax dollars pay for and for showing no job initiative whatsoever. It also prevented the company from returning greater return on the dollar and lowering prices to be more competive as we couldn't hire high school kids $3.48 per hour to do the same job with fewer breaks, and more effort.
The GM cars are poorly designed, poorly executed and rediculously priced. There is no reason the government needs to bail them out. If Ford makes a better product for the same money than they'll just get more business and so the jobs still go to Americans. If the Americans make no effort to make superior products than why buy them? You can give me a bunch of junk about taking care of our own or selling out to foreigners but in the end when we hit rock bottom we'll stop producing crap and move forward. If Ned Flander's left hand shop isn't making enough money to make ends meet, it isn't because foreigners are using left-handed business practices to steal his business, it is because the demand for something so few want - just doesn't exist.
Of course nothing is perfect. There are bad unions. But just because some are bad doesn't mean they are all bad. Should we get rid of every banker because some were greedy? Should we scrap the U.S. government because some people made bad choices? And as for the bailout. its loans the automakers are after, not free money. Unlike the bankers that everyone seems so content to help out (even though they made terrible decisions) who have no intention of repaying any of the money.
I wouldn't say ALL unions are bad as I haven't had experience with all. I can say I worked in the food industry, manufacturing industry and public sector and educational - in my opinion all those unions were worthless and only promoted laziness, a lack of regard for authority, a feeling of impunity and a gross feeling of entitlement.
I do feel though that the government has a responsibility to provide civil code enforcement, assist with public health, and assist with (not provide) education. The government has no role to provide grants for modern art, ebonics courses in public schools, after school activities or so many other things they are wasting their time with. If Johnny can't read - let him flunk out - it is his breeding parents who should be making sure he gets an education. The husband gets to have sex with her - so he bares the responsilibity of providing education and funding for the child - not me. If I'm going to have to pay for every brat that screams on a plane behind me than I should be having sex with every married women whose child goes though the public schools. Why the hell do I get the crying and the hand out and not get to enjoy the 5-10 minutes of fun that created the little bastard?
Mark my words:
-Bull
-Crap
-Merde
-Caca
No mather in what language ! It will never see the light of day !
American cars been bad so long that no one considers them anymore when purchasing a car. They've earned that and to change people's mind they got to prove it. Make the car cheaper, way longer warranty if you truly beleive your car will last and not make it so damn ugly. I mean who designs these american cars? A lot of them look like it was shit out of someone's ass. People want a combination of things when buying a car...if they thought american cars were better looking, fuel efficient, and reliable...who the hell wouln't buy it. You see a lot of dead cars on the road...and mostly american cars. Asking for so much handouts and still making bad decissions. Who wants a car company like that.
Have you even looked at American cars lately? I've owned Japanese, American and European cars, and the new American cars are better than EVER. Not all of there cars may appeal to you, but you have to at least acknowledge their quality. Read some reviews, American cars are doing well, and not every foreign car is great quality either. I'm only going to say this once... I'm tired of this whole "American Auto Manufactures need to build cars people want" crap. Pull your head out of the sand and look around. 7 out of 10 cars I see on the road are a truck or an SUV (foreign and domestic). It seems funny to me that no one wanted them, but the truck was the biggest selling single vehicle type in America for many years. I suppose Toyota and Nissan started importing full size pickups and SUV's because no one wanted them either. I don't remember them getting any better gas millage either. GM should have gotten focused on fuel efficiency years ago, but did you think they should just stop making pickups (that sell by the way, even today) because they didn't get great gas millage? If no one wanted or bought inefficient cars there wouldn't have been such a uproar about the high gas prices a year ago would there have been? So I guess someone wanted those cars...
I was in the market until I decided to hold off for a while. I looker at everything from every available manufacturer, and not a single car by any American car company apples to me on any level, especially in light of the offerings from Mazda, Nissan and Mini which were my final three. I really want to buy an American car, but I'm not going to compromise on what I want, and what I'm willing to pay, just to "buy American". Besides, of the 3 finalists, 2 of them are manufactured here in the US, in plants that employ Americans. The idea the there is any solely American manufacturing company anymore is a fallacy.
that's why they were in my final 3. I have 2 Nissans right now. In fact, every car that I've ever owned has been a Nissan or a Ford, except for 1 VW. AFAIK Mazda and Nissans are built in the US. I don't know about the Mini...
For 10.3, I could start an auto company that makes electric cars. Why give it to a company, such as GM, that wants electric cars to fail?
Does everyone fail to realize that if GM goes under they will drag Fords and Chrysler down too?? Also, so we seriously want to be at the mercy of all foreign auto companies? sounds just dumb to me.
I hope everyone understands any GM bankruptcy will mean the U.S. government will take over those "legacy costs" including pensions and health care.
It will be very expensive for U.S. taxpayers if it happens.