Comments on: Awaiting the GM news

By: Steven

Steven — Fri, 07 Nov 2008 22:38:25 +0000

Swade: I can see your cupholder point, but I’m still not seeing “Customers are finding it hard to get money” apart from the rhetoric coming from the folks suffering on the supply side. I could not tell you if I have good credit, but I’m pretty sure I don’t have bad credit. I have no idea what my scores are. The funny thing is, people all around me are buying new cars. Maybe the current state of the industry is the level that the market should have been all along? I wonder if people had not pulled so much cash out of their monthly payment by getting interest only mortgages, or cashing in on the new found equity as the availability of those loans drove up home values (that used to be a method of last resort). After which they used that extra money to buy more than they really should have (cars, trucks, blackberrys, clothes, HDTVs, you name it…)? Did that encourage GM and others to keep building more high-profit vehicles (and regrettably pissing away the proceeds) just because people had more and more borrowed money to spend? Maybe some of these are fairly obvious now. Maybe it should have been obvious earlier.

By: NJ_Nick

NJ_Nick — Fri, 07 Nov 2008 17:11:04 +0000

Seems like it is either bailout or bankruptcy we are looking at, since GM is loosing more money than expected:

http://money.cnn.com/2008/11/07/news/companies/gm/index.htm

Also, talk to aquire Chrysler has been suspended:

http://money.cnn.com/news/newsfeeds/articles/apwire/44486b3bccc270e2033d0a7b72ef8201.htm

I wonder what they discussed at the Trollhattan factory…..

By: aireeca

aireeca — Fri, 07 Nov 2008 16:20:44 +0000

Well, kids, the earnings report was set to be released about an hour ago. Still hasn't shown up on the Web site. P.S. Hey, Tdjs! I've recently relocated to Cleveland. Glad to see some other Ohio folk in Saabs.

By: Kurt W. Krauss

Kurt W. Krauss — Fri, 07 Nov 2008 13:09:47 +0000

Right now, I am afraid either a Volvo-Saab or GM-Chrysler merger would be the equivalent of the Studebaker-Packard merger. And what happened to that company?

By: Tompa

Tompa — Fri, 07 Nov 2008 10:38:32 +0000

I know that I will get alot of complaints after writing this.. But it might be time for the two Swedish brands to swollow their pride and do what former Volvo boss P-G Gyllenhammar suggested many many years ago..

Both our Swedish brands are bleeding at the moment. One company has got lots of visions and loyal follower but to few models to get around. The other larger company also have a genuine background and many loyal followers but at present loads of models that realy isn´t part of the companys view of how a car should be. Both swedish companys have been subjected to their respective owners stubborness and pigheadedness trying to make the two into something they are not.
Saab is in the hands of a company that dictates Saabs every move and has stronger brands that get the go first in everything. Caddy, Opel etc.
Volvo is in the hands of a company that try to sell Euro Fords with a Volvo shell at Audi prices.

Could a Saab-Volvo joint venture be successful? NO I´m not saying they should make Volaabs or Salvos. What I´m saying is.. Have Volvo produce cars with their core values and Saab cars with their core valus. Share some components, have some cooperations with other companys to reduce costs, and make cars with high end tech, interior quality and their respective looks on what a car should be.
I believe both would benefit from oneanother.

But.. Would Ford let go of Volvo?

Am I totaly out of my wits?

By: van god los

van god los — Fri, 07 Nov 2008 09:38:14 +0000

“I think it’s unlikely that we will hear directly about any possible Sale of Saab tomorrow. Maybe just a few hints? I still think my scenario of using the new 9-5 as a bargainning chip to sell Saab is possible. Whilst everyone else seems to think that Saab would be sold to a single buyer, I’d like to suggest that a consortium might be a viable solution? GM could still retain a significant share of the brand and possibly be the main OEM supplier to a new Saab AB, but would not be directly financially responsible for the company. I’m sure this would please the beancounters at the moment. And it would get some return for selling 75-80% of Saab.

I think it would broker a deal to supply the 9-5 from Opel for five years or so to the consortium, and also supply components for the existing 9-3 and possible replacements. I think it’s less likely that the 9-4x will get similar treatment and could simply be re-badged as a Saturn/Opel/Vauxhall or Holden depending on the market. The replacement 9-3 and possible 9-1 models would probably suffer some delay, but if GM was to remain a major component supplier this could be minimized.”

That does make sense to me. I’m not against such a Jaguar-scenario.

I never liked the idea of a 9-4x anyway (not for saab at least, for cadillac it’s a perfect car)

By: ctm

ctm — Fri, 07 Nov 2008 08:05:52 +0000

If only they could divorce GM Europe from GM North America. Oh wait, then there will only be GM Europe left 12 months from now…

By: Joe

Joe — Fri, 07 Nov 2008 07:11:36 +0000

This lawyer’s observations made sense to me. I tend to not favor a merger or bailout plan for GM. There are many Korean, German (VW/Audi), Japanese and even Chinese firms waiting for open American manufacturing market share. They are waiting for highly trained American auto workers and infrastructure to help extend their portfolio utilizing the favorable $¥€ exchange in the US. Foreign automakers products have already achieved 2011 Chevy Volt/Cruze-like fuel economy figures today (aka. VW Jetta TDI) at an $18K price range. The “Big 3″ are so far behind the 8-ball it’s not even worth any of our tax dollars. Just read this article if you have a few minutes and then write your US Representative:

http://www.thetruthaboutcars.com/editorial-why-the-gmcerberuschrysler-bailout-is-bad-for-taxpayers-and-doomed-to-fail-without-the-benefits-of-a-chapter-11-filing-for-both-chrysler-and-gm/

By: Swade

Swade — Fri, 07 Nov 2008 06:02:03 +0000

Steven,

With all due respect, and as Greg Abbott once said to me with regards to cupholder gripes, you’re a group of one. The fact that your personal experience is one way doesn’t make the opinion here any less relevant (like the fact that I only drive 10 minutes to work and don’t need a cupholder doesn’t mean that they’re not needed by others). My experience was my own.

That’s great that you’ve got good credit and can access this, but it’s a fact that a lot of people aren’t getting finance as easily as they used to.

By: Steven

Steven — Fri, 07 Nov 2008 05:27:19 +0000

I’m not sure what to think of these “Customers are finding it hard to get money” allegations. What is the basis for this? I recently (Sept 28th) got a 100% loan for a ’08 9-3 in about 5 mins online at a 1.1% lower rate than the Saab dealer was willing to give me.