Off to car heaven

Market close today GM cap is down to $1.08B, gives you an idea what the
market thinks.

 

Moneyblog http://is.gd/jYqP

Say goodbye to Saturn. And Saab and Hummer, for that
matter. Pontiac, too, for all intents and purposes.

Unless buyers (a few million of us -- or maybe just a
couple of really adventurous billionaires) step forward,
three of General Motors’ eight brands are now destined to
join Oldsmobile in the history books. A fourth will be
relegated to “niche” status, says GM. The company, until
last year the world’s largest automaker, announced plans
Tuesday that would drastically scale back its operations in
order to stay alive.

Production of Saturn cars would stop in 2011 if the brand
hasn’t been sold, GM said. Execs will decide whether to
pull the plug on Hummer at the end of March, though rumors
of Chinese interest have emerged (and been discounted)
several times. The company says Saab will be an
“independent business entity as of Jan. 1, 2010.” Take that
to mean “dead” unless a reluctant Swedish government can be
convinced to step in. Pontiac will emerge as a “highly
focused niche brand” sold through Buick and GMC Truck
showrooms.

All necessary steps, for sure. And insignificant, compared
with the long-term future of the workers who make them and
the towns that depend upon them.

Yet we’ll mourn these brands even if we won’t miss them.

Pontiac was long General Motors’ coolest brand, its
Firebird, Grand Prix and Bonneville as hip and relevant in
their heydays as any BMW or Honda today. Its GTO was the
first true muscle car, its Trans-Am the only legitimate
reason to watch “Smokey and the Bandit.”

Saturn once represented hope for a new way of doing
business at General Motors, with distinctive plastic-bodied
cars and a warm, almost nurturing sales environment. For a
time, its “Different Kind of Car Company” shtick worked:
Its Homecoming gatherings in 1994 and 1999 drew 75,000
visitors to Spring Hill, Tenn., for a lost weekend of plant
tours, country music and sheer differentness.

Hummer? While they might feel as outdated as a coonskin
hat, they’re still a lightning rod for eco-terrorists
(cops, too) and a raised middle finger to everybody in a
Camry. At least you know where a Hummer driver stands,
right?

There was a time when Saabs were charming – ugly, obstinate
and tough as hell -- but that came long before General
Motors entered the picture in 1990. Its offerings today:
rebadged GM generics with the ignition switch relocated to
the floor.

For good or bad, GM has chosen its horses: Chevrolet,
Cadillac, Buick and GMC. Would those be yours?

Don't expect a fire sale on doomed brands. There already is
one, or close to it.

Once factories begin to be shuttered, the balance of supply
and demand begins to tip the other way. Don't wait too long.

GM expects its dealer count to fall from 6,246 in 2008 to
4,100 by 2014, mostly in metro and suburban markets. What
it will cost GM to disentangle itself from a politically
powerful dealer body wasn’t specified, but it spent more
than $1 billion earlier this decade to shut down its 2,800-
dealer Oldsmobile division.

GM was the largest U.S. corporation by revenue as recently
as 2000. GM held 50% or more new-car sales for decades,
peaking at 55% in 1956. In 2008, that figure fell to less
than 22%. Market capitalization peaked at $52 billion in
2000. Tuesday, after GM revealed its survival plans, that
figure was $1.33 billion.

Whatever your feelings about Hummers, General Motors or
cars in general, it's an astounding fall.

 

Not so astounding if you paid any attention to the total mismanagement
that has been going on there since the 1970's. More like "inevitable"

 

Speaking of hummers, doesn't the US Military use it? Would that
contract be what's keeping this division semi-alive today? And would
the same contract preclude any foreign buyers from taking over (eg.
Chinese automaker manufacturing US military vehicle wouldn't go too
well for Obama)??

Conceivably, if the war in Afghanistan & Iraq continues for another 10
years and more IEDs go off, the US military will need a lot more
hummers and thus keeping GM well fed for years to come.

 

Military Hummers are nothing like the GM Hummer.

The original High Mobility Multipurpose Wheeled Vehicle is the real Humvee
and is built by AM General. After there was some civilian interest, GM
bought the name and came out with the Sissy Hummer they now sell. IIRC, it
was built on a Tahoe chassis. Most are owned by guys with a tiny penis and
are never taken off road. .

 

....and still is built by them. I don't think they sell the civilian H1
anymore, but the do still make the HMMWV.

Yes, a tahoe with a fucking tall box.

I think soccer moms bought most of them. However, I can't imagine one off
road. Give me a V8-powered S-10 or a Toyota SR5 with a SFA and locking
hubs anyday.

IMO, my wife's Vue can get in and out of more places than a H2.

 

Hummer H1's (the military Hummer) is, and always was, made by AM
General, never GM. GM bought the name 'Hummer', and agreed to buy a
few H1s (which they didn't know how to sell). AM General also built
and ran the plant that made H2s (next door to the H1 plant). However,
since GM has dropped the H2, that plant is being retooled for other
vehicles.

GM's Hummer division is nothing. Never was, just smoke and mirrors.
The only Hummer that GM ever made was the H3.

No, the only thing GM owns is:

1. The name 'Hummer' and
2. The H3 plant.

Everything else belongs to AM General.

And they will get them, as this has nothing what so ever to do with
GM. Now, the public won't be able to buy that little H3 thing that GM
created, but WTF, apparently no one cares!

As to the 'Hummer' name, it is just that, a name. Six letters, nothing
more.

 

Actually, GM only markets and distributes the Hummer's. AM General still
builds them for GM. As for them being Sissy's, you obviously haven't taken
one off roading.

 

Even at 22% share in 2008, GM sold MORE vehicles than it did when it had 50%
of the market when there were far fewer bands and fewer vehicles sold.

 

Really? That may be your opinion but if that was the case, why did GM sell
almost three times as many vehicles up until 2007 and its stock price split
three times since 1965? LOL

 

GM does not make the military HMV.

 

Correct. I'd not want to be seen in one of the ugly beasts. I think it is
worse than being seen in a Honda Element and that is BAD.

Has anyone every taken one off road? The only ones I see are taken to the
mall or to the grocery store for a loaf of bread.

 

But is worth less than 1940 today.

 

Are you off road where you might see them?
If you only go to the mall or grocery store, then that's where you'll
see them.
I see them occasionally - I don't go off road - but don't really pay
attention to them, except to think they should pay extra taxes for
boosting my gas price.
Real "car guys" ala Nate should be interested in them.
They *are* different for sure. Like Porsches.
Different uses, of course.

--Vic

 

Curious that they should wish to rid themselves of 2 of their most
promising (and best styled IMHO ) lines ( Hummer excluded ).

When will the Americans ever learn ?

2 Saturn models are already effectively Opels ( except they insist on
putting bigger engines in them plus slush boxes ) and fuel efficient
along with the Saabs.

Let's hope Investor AB will take a bigger interest, or even Scania step
in ?

Graham

 

Yup, they turned Saabs from virtually unbreakable to 'ordinary'.

Graham

 

Appearance is a personal preference. You don't like them, and that's fine.
I do.

I've seen Cobalt's mudding, but it doesn't mean they all do.

 

Perhaps that is because you never go off road in you ten year old Corolla.
LOL

 

Perhaps but what does that have to do with your opinion that the
mismanagement was going on since the 1970's?

 

Perhaps but GM sold ten times as many in the US LOL