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pkoko

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Posts posted by pkoko

    REPORT: GM to get $5B, Chrysler $500M from gov't

    in Competing Products

    Posted

    I am really beginning to believe that Obama's administration are in a really difficult predicament. It is clear that GM & CryCo done nothing to improve but the administration can't stand the thought of two American icons filling for ch. 11. They are hoping the extra money will give the whole auto market time while sales return to normal levels.

     

    If GM & ChryCo get this money; they will continue to get more money regardless of their success or failure of their restructure plans. Obama is scared of the impending reality and doesn't want to be responsible for the aftermath. So they are delaying the inevitable.

    If GM and Chrysler are sold off in bits........

    in Ford Motor Company Discussion Forum

    Posted

    Ford said they want nothing from ChryCo. I am sure Ford will want some bits and pieces from GM like:

    1) Technology on the new Chevy Volt and Plug in Hybrid

    2) The entire corvette design team with their LS engine R&D department.

    3) The new GMT900 platform (the Tahoes, Suberbans, Escalades), Is there still a market for it??

    4) GM dealer networks in China and East Asia.

    5) Allison Transmissions ??

    6) Heavy Duty trucks??

    7) Cadillac CTS and its platform for future RWD & Lincoln models (true LS replacement).

     

    Did I miss anything?

    My comparison: eight compact SUVs

    in Competing Products

    Posted

    That's exactly what I do. If you check the review, you'll see both the sticker price and the estimated transaction price, which comes either from Edmunds or from a Washington-area dealer's internet price for a car with those options.

     

    Fine.. Let's see the prices for top 4 vechiles from you own test

     

    Ford Escape

    Vehicle tested: 2009 Ford Escape XLS

    Vehicle base price (MSRP): $20,435

    Vehicle price as tested (MSRP): $22,095

    Estimated transaction price as tested: $18,105

    Estimated transaction price as comparable*: $19,702

    Test vehicle provided by: Lindsay Ford of Wheaton, Md.

     

    Honda CR-V

    Vehicle tested: 2009 Honda CR-V LX

    Vehicle base price (MSRP): $21,245

    Vehicle price as tested (MSRP): $21,915

    Estimated transaction price as tested: $18,827

    Estimated transaction price as comparable*: $20,610

    Test vehicle provided by: Sport Honda of Silver Spring, Md.

     

    Subaru

    Vehicle tested: 2009 Subaru Forester X

    Vehicle base price (MSRP): $19,995

    Vehicle price as tested (MSRP): $21,968

    Estimated transaction price as tested: $20,165

    Estimated transaction price as comparable*: $20,165

    Test vehicle provided by: Herb Gordon Subaru of Silver Spring, Md.

     

    But notice the RAV4

    Vehicle tested: 2009 Toyota RAV4 base

    Vehicle base price (MSRP): $21,500

    Vehicle price as tested (MSRP): $24,705

    Estimated transaction price as tested: $22,016

    Estimated transaction price as comparable*: $21,220

    Test vehicle provided by: 355 Toyota of Rockville, Md.

     

    It is by far the most expensive vehicle on the test. It costs more than $1000 than its nearest competitor. $1000 is a big difference in $20k vehicles. That extra difference you could have gotten an Escape with leather & sync. I am not saying the Escape is better; I am saying the RAV4 is overpriced for what you get.

    What GM needs to do to survive?

    in Competing Products

    Posted · Edited by pkoko

    It's over guys, really. What is the point of this type of thread nowadays? GM exec's are calling recruiters and contacts for leads in different industries.

     

    Labor and the left have won. GM is history. Congratulations.

     

    The politicians now want them in and out of bankruptcy as quickly as possible, so it's not still dragging on come (national) election time.

     

    I don't think so for couple of reasons:

     

    1- A lot of people (150K) will lose their Jobs. That is not good sign in a recession. The state gov't in MI will ask for a bailout that is greater than the loan GM seeks.

     

    2- the lost tax income for Fed government from those newly unemployed workers. If 150K people pay average federal tax of $7500/yr. Then that is $1.5 billion in reduced tax revenue per year. If some suppliers bankrupt as well; then that is more laid off workers and even more lost revenue to the US govt.

     

    3- A company as big as GM going out of business will destroy consumer confidence and let this current recession drag on even longer. People will not buy anything other than food, gas, and basic necessities. This will destroy the service sector, which more than half of the US GDP. This will set back the US economy for at least 5 years.

     

    I think the Gov't wants a smaller. more efficient, profitable GM. If the Govt can't do that. Then the Gov't will split GM into smaller brands and let it die out slowly. The last thing the US gov't wants right now is scenario # 3.

    What GM needs to do to survive?

    in Competing Products

    Posted

    OK, If I was a GM exec. I'd be damned if I'd be on the Internet looking at my competitions enthusiast web site for ideas on how to save my company.

    Soo true, But it is more productive than playing golf, don't you think?

     

    The real purpose of this thread is to see if normal average auto enthusiasts have more common sense about saving GM than the so called "experts"

    What GM needs to do to survive?

    in Competing Products

    Posted

    This thread is trying to give good hints and ideas for GM executives to help GM survive and become "viable" so it can continue to get aid from government and eventually pay those loans back. Please keep this thread on topic and no flaming between Ford & GM. I also ask for thoughtful criticism and analysis of other posters' ideas. I have the feeling that the hints others will post would actually make more sence and help GM more than what will happen.

     

    So let's Start:

     

    1) I would immediately seize production of any vehicle that I have stock of more than 90+ days. I would pay the workers who work at those plants reduced salary(if the UAW allows it) to not show up to work. GM doesn't need any more inventory.

     

    2) I would subsidize leasing on new cars and crossovers. A lot of people leases are up and switching to brands that offer leasing like Nissan, VW, Toyota, etc. This is extremely important for the luxury brand of Cadillac, which 75+% of its retail sales are leases. This is especially needed for returning lessees. FYI, Ford offers $1500 rebate if a lessee buys a new ford. GM only offers $1000. Most of those lessees are looking for the newer car for the same previous monthly payments. GMAC has to step up to the plate and provide near 0% money factor rates. I think this will help GM more than sub-prime lending.

     

    3) Don't play the incentives game. Don't flood the market with fleet sales. You have to think long term and build up the resale of your products. Provide your costumers with subsidized interest rates but don't do rebates more than $2000 for cars and $3000 on trucks. Nothing provides a better impression of financially struggling company than a $7500+ rebate.

     

    4) Price your product realistically. For example, why is the 1LT Malibu I4 with 6 speed auto at $25K when a comparable Fusion is under $22K, Accord at $24k. At that starting price, you have to place a huge rebate for it sell anyway. So why not fix the problem? It also helps your resale value also as that is calculated of MSRP not actual sale price.

     

    Now it is your turn

    Navistar Settlement

    in Ford Motor Company Discussion Forum

    Posted

    If you figured 200k engines @ 3 years, that's 600k engines bought out at $200m, or $366.67/engine.

     

    250k engines @ 3 years is 750k engines or $266.67/engine.

     

    In short, they probably got out for dimes or pennies on the dollar.

     

    Sorry your logic is greatly Flawed. Ford only sells 30-40K superduties a year. So if half of them have the power stroke Diesel then that is only 20K engines a year.

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