[Admin]

You probably heard the rumors over the weekend that GM would be eliminating the Pontiac brand. This morning GM held a news conference announcing this major change along with additional moves to ensure the company is profitable again in 2010.

Significant changes include:

- A focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand.

- A more aggressive restructuring of GM's U.S. dealer organization to better focus dealer resources for improved sales and customer service.

- Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants.

- Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007.

Below is a link to a blog post by President and CEO Fritz Henderson that outlines GM's new restructuring plan and links to two news releases (one on the viability restructuring and another on the bondholder offer). It also has a replay of the news conference if that's of interest to you. I attached a text version of this too.

GM FastLane
<<GM FastLane Blog by CEO Fritz Henderson on New Restructuring Plan.4.27.09.doc>>

 

[boondoggle13]

You probably heard the rumors over the weekend that GM would be eliminating the Pontiac brand. This morning GM held a news conference announcing this major change along with additional moves to ensure the company is profitable again in 2010.

Significant changes include:

- A focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand.

- A more aggressive restructuring of GM's U.S. dealer organization to better focus dealer resources for improved sales and customer service.

- Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants.

- Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007.

Below is a link to a blog post by President and CEO Fritz Henderson that outlines GM's new restructuring plan and links to two news releases (one on the viability restructuring and another on the bondholder offer). It also has a replay of the news conference if that's of interest to you. I attached a text version of this too.

GM FastLane
<<GM FastLane Blog by CEO Fritz Henderson on New Restructuring Plan.4.27.09.doc>>

damn thats insane! cutting hourly wages as well .... god bless america

 

[FearlessZero]

I'm actually a little suprised that they're going to keep buick, but everything else makes sense. Kind of sad that we won't see the awesome G8 GXP anymore If they go and kill the Corvette or the Camaro for Chevrolet I will be angry and sad as GM's sport segment will practically be dead, except for the Cobalt SS, if they have the money to produce it. Worst case senario is that the Cruze replaces the cobalt and the SS is no more.

 

[scagnetti76]

bye bye GTO and solstice!

 

[Mick]

GTO's stopped getting made a couple years ago.

The reason buick wont get the axe is because they do well overseas.

 

[scagnetti76]

i know they stopped making the gto a couple years ago....but now there is no hope.:sad:

 

[finnscobalt]

Buick is a well filled niche in the car world, mainly people older than 40 that do not need or desire to spend Cadillac money for luxury, for the same car. GM has been dying for years do to internal competition. Recently they even badged the Chevy Aveo into the Pontiac G3. Anyone who is looking for an econobox is not going to spend 14,000 for a name and not to mention the double insurance. Thats why I went with the Cobalt instead of the G5. GM needs to go back old school where each brand had its own niche and quit crossing over. They also need to drop down to ONE fullsize pickup not the four they have now.

 

[finnscobalt]

And in all actuallity foreigners like the Chevy Impala; or at least the Saudis, Kuwaitis, Qatar, Iraq and Afghanistan. I saw more 1994 era Impala SS in Kuwait in one week than in the past 7 years in the states.

 

[OBZ]

I'm actually a little suprised that they're going to keep buick, but everything else makes sense. Kind of sad that we won't see the awesome G8 GXP anymore If they go and kill the Corvette or the Camaro for Chevrolet I will be angry and sad as GM's sport segment will practically be dead, except for the Cobalt SS, if they have the money to produce it. Worst case senario is that the Cruze replaces the cobalt and the SS is no more.

GM actually makes alot of money from buick overseas and to the elderly crowd. It makes sense they kept it. Sad to see pontiac die though..

 

[Mick]

Buick is a well filled niche in the car world, mainly people older than 40 that do not need or desire to spend Cadillac money for luxury, for the same car. GM has been dying for years do to internal competition. Recently they even badged the Chevy Aveo into the Pontiac G3. Anyone who is looking for an econobox is not going to spend 14,000 for a name and not to mention the double insurance. Thats why I went with the Cobalt instead of the G5. GM needs to go back old school where each brand had its own niche and quit crossing over. They also need to drop down to ONE fullsize pickup not the four they have now.

What do you consider 4 full size trucks? if you are talking about the 1500, 2500, and 3500's there is big difference between those trucks and is there for a reason. Price for one, and you arent going to need a 3500 when you just a truck for hauling stuff to the dump here or there or for towing minor things.

 

[finnscobalt]

I was talking about going down to one brand, ie Chevy, GMC, Cadillac and eliminating the Chevy Avalanche. I am also a truck guy that actually uses a truck for their intended purpose, I have been through 3 spray in bed liners for my 2000Ram.

 

[Mick]

Well, yeah avalanche is junk and needs to go. and also I now see what you are saying.

 

[FearlessZero]

I didn't realize that Buick did well overseas, I just don't see so many of them around as much as other people may. It is dissappointing that we won't get the chance to see the Solstice GXP hardtop in action. That car was freaking awesome at the L.A. autoshow.

 

[finnscobalt]

Buick is real popular with the 40 plus crowd in the midwest and parts of the east.