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https://www.popularmechanics.com/technology/a25307664/gm-cuts-product-kills-sedans/
"Part of the problem here, I might suggest, lies with GM's absolutely bananas pricing on some of its sedans. Consider the LaCrosse: In its most humble powertrain configuration—four-cylinder, front-wheel drive—it's possible to option a LaCrosse past $45,000. That's for a mid-level model. A loaded Avenir can go well past $51,000. Meanwhile, $45,000 will also get you a Lexus ES350 with Premium package, navigation package, driver-assist package, and a rippin' 302-hp V-6. Who are the decision-makers at GM that survey this scene and say, "You know, we think people are gonna pay more for a Buick than a Lexus"? |
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I remember a friend who bought a new Vega in the day made in Lordstown. He had a persistent rattle in the car. Finally the dealership pulled the door card to find a coke bottle with a note that said in effect, “how long did it take you bozos to find the bottle?”
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Brian Bosworth tells a similar story from when he worked at a plant as a summer job, I imagine it happens everywhere. I once had to explain why when unloading a returnable a giant phallic drawing was exposed at a GM plant... good times.
Edit: I take that back, such things probably don't happen in plants where your children will starve when you're fired for it. Not that I condone such things but it's true none the less... |
Earlier this year I started looking into getting a new daily driver.
I researched many different pick-ups and SUVs. Coupes, sedans and wagons never even made the consideration list. I ended up buying a Toyota highlander and I'm very happy with the choice. But I would rather drive sedan than a Nissan rogue .... ugghh. |
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This could very well be the most thought out decision GM has ever made, and the smartest. The smart C-suite makes bold decisions when the company is in good health, NOT when it's in decline and options are limited with their back up against a wall. Confidence in a new direction you have chosen is far better than being forced into a direction you have to take. From what I understand, it's a strategic move based on changing consumer buying habits, tariffs and technology. And ultimately the gamble is on the changing nature of America's love affair with the automobile. EDIT: and the forthcoming recession must have played a role in this decision |
From what I have seen of US companies in the last 10 years, I'm talking about the really big ones, in many cases all of the smart older guys have been put out to pasture and been replaced by a fairly clueless, and experienced younger group that is willing to work for less money. I have seen time and time again, really lousy decisions being made and then when I see in the news that these companies are having difficulties, I am not surprised.
Time will tell if they made good decisions or bad ones. One thing that concerns me is there a relentless drive to push new technologies. They invested heavily in electric cars, far in advance of the public wanting them and they are making that same mistake, in my opinion, with autonomous cars. I think autonomous cars are a really bad idea, and we're certainly not ready to roll them out in 2019. |
"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies"
Not trying to bring politics into this but the guy says what I'm sure a lot of people are thinking when they read about the plant closures. I have to admit when I heard about the plant closings what he tweeted pretty much summed up my thoughts. |
If I were in charge of a large automobile company (and they're glad I'm not) and I had a line of lines of cars that were not profitable, I'd be looking to build something else.
Something better, something that would sell better. I'd want to do that before killing off a part of the company. That's like cutting off your arm because you don't like your watch. Now just for the sake or argument, suppose they ARE planning to re-tool a line and come out with something new but it won't be ready for production for a year or two. in that case i would consider closing down the looser line and temporarily laying off workers. No such thing as loyalty, especially to workers who get very good wages and benefits and still threaten strikes and cause union problems every day of the week. |
Yes, end the teat sucking subsidies. The product should stand on its own.
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