Comments on: Biopower success

By: 1985 Gripen

1985 Gripen — Fri, 21 Oct 2005 17:08:17 +0000

PT, although I think that GM can do a better job of coming up with new products, I think the main reason for their financial woes isn’t necessarily product sales. It’s labor costs and benefits obligations that appears to be killing them.

They can sell a BILLION cars this quarter, but if they’re taking a couple of grand loss on each one (due to pension and benefits obligations) they’re going to go bankrupt in a hurry.

By: PT

PT — Fri, 21 Oct 2005 15:43:56 +0000

Point well made 1985 gripen. I know/understand what you are saying. My comments above are also slightly the symptom of posting at the end of a long day and feeling a degree of frustration that this IS the world we live in; like it or not. Bob just seemed to rub it in my face with that particular blog post.
That said, I think the tide is turning beneath GMs feet in a global sense. What Americans ( worlds biggest market) will buy is one thing…what the rest of us are up to is another.

A good point about profit margin in SUVs but….if we assume this margin is there, why is GM constantly crying poor and running at a loss? Or is it just that all their cars are that much of a drain/lossleader?

Now if only all those trucks could run on ethanol…..

By: 1985 Gripen

1985 Gripen — Fri, 21 Oct 2005 14:56:41 +0000

PT, I’m thinking that there’s much more profit margin in a truck/SUV than there is in a passenger car. At least here in the U.S. even though gas prices are higher than usual there’s still a HUGE market for trucks and SUVs. Some people consider themselves “truck people” and wouldn’t ever consider a “pansy-ass” crossover or station wagon. It’s a cultural thing. GM is right in making what the customer will buy. Nobody’s PUSHING trucks at people. The market’s there and GM’s just filling a demand. I think that society as a whole would be better off leaving trucks and SUVs to companies and construction firms who actually NEED these type of vehicles, but you can’t make a law that says the common citizen can’t be an idiot and buy a truck or SUV they don’t need just as a status symbol.

From what I understand in other countries it’s a status symbol to own a “yank tank”. There’s some radio DJ in Britain who owns a couple of big American SUVs. Hummers sell all over the world. Apparently by wasting resources and showing a general disregard for the wellbeing of society as a whole you get positive attention…

By: Paul Halliday

Paul Halliday — Fri, 21 Oct 2005 11:29:48 +0000

A big round of applause for Sweden – that’s an astonishing figure!

By: PT

PT — Fri, 21 Oct 2005 01:28:00 +0000

sorry if this is offensive but american car company executives wearing gold ties bleating on about “trucks” in our current consumer/political/energy/environmentally concious environment is now beyond silly and getting to the point of insanity. Pretty close to commercial hara kiri.
I guess bob has to sell what hes been given and GM haven’t given him much. Then again, isn’t he their product man?

ps – I’m allowed to take potshots at americans – i am one.