GM Emerges From Bankruptcy

It seems that many of the prognosticators were way off on their predictions of when GM would emerge from bankruptcy.  GM the mighty corporation has quickly emerged as the smaller, humbler (we hope) GM Company.  The new GM is now down to 4 brands, Buick, Cadillac, Chevrolet and GMC.  Many people still question why Pontiac was dropped.  It outsold Buick in the US.  The main reason is Buick’s popularity in China.  It is a huge seller there and makes more money than Pontiac.  Many of the best Buicks are manufactured and exclusively sold in China.  GM is also considering changing their blue logo to a green one to give us the illusion that they are a “Green??? company that produces higher mileage, smaller cars.  Jury is still out on that one.

We Americans are all shareholders in this new GM.  We own 60.8% of GM.  The rest is divvied up among the bondholders, the UAW, and the Canadian union.  Wonder if we are eligible to get a corporate discount? 

Maximum Bob (Bob Lutz) has been asked to stay on at GM, foregoing his retirement at the age of 77.  Bob was the instrumental in the development of the new Chevy Camaro and Volt.

See the following clip from CBS News for a quick synopsis.

 

Have a safe and restful weekend, America!

Is Fiat Repeating GM’s Mistakes?

by Lloyd Frazier

fiat emblem The last three months of reports coming out of the global auto industry has been full of wild speculation, some good news, and mostly bad.  We are seeing the beginnings of a major realignment of this industry due to the global economic meltdown.  The big question of the moment is why Fiat is so determined to follow in GM’s footsteps…and Ford’s for that matter.  They seem to be on a crusade to rule the auto world.  First they snag Chrysler, now they are after Opel and some others.  Ford methodically shed Jaguar, Rover and Aston Martin last year, just ahead of when the major meltdown started materializing.  That is why they are ahead of the curve in the global scheme of things.  GM is still trying to slim down by dropping Opel, Saab, Saturn, Hummer, Vauxhall and some others.  These domestics did what Fiat is now doing, gobbling up more than it can chew.  And at the worst time in history.  Or, do they know something that we industry observers are unaware of.  Maybe this is the perfect time for bargain shopping.

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