silvrsvt Posted March 12, 2010 Share Posted March 12, 2010 GM: hybrids, electrics are the future http://www.app.com/article/20100311/BUSINESS/3110363/1003/GM-hybrids-electrics-are-future Lutz concedes that GM made mistakes. Too many employees and unused factories cost it dearly. When Ford Motor Co. mortgaged its factories and logo in 2006 to raise money for its restructuring, GM executives were shocked. But in the end, Ford avoided bankruptcy protection and is now gaining U.S. market share. GM also has gained U.S. share in the first two months of this year, but at a slower clip than Ford. Guess they are never going to change are they? Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 12, 2010 Share Posted March 12, 2010 Of course they were shocked. The world as GM saw it was full of sunshine and rainbows, where a Solstice could make a G6 appealing, and where everything was the fault of the Japanese and the UAW. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 12, 2010 Share Posted March 12, 2010 "I really have achieved what I set out to do," Lutz told The Associated Press in his office at the GM Tech Center. Sure he did. He got his ego stroked by the press for a decade and gets to retire with a golden parachute. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 12, 2010 Share Posted March 12, 2010 "I certainly didn't want to get in and meddle," he said. No. He wanted to get in and dictate imperiously Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 12, 2010 Share Posted March 12, 2010 During one early meeting, Lutz said he interrupted a "feeding frenzy of criticism" directed at Henderson by reminding board members that he was in charge of worldwide BMW sales when most of them were in high school. "Be careful about how you advise me about what's right and wrong in running an automobile company," he says he told them. In case you were wondering, in case it wasn't transparently obvious by now: It's all about the Lutz. It's always been all about the Lutz. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 12, 2010 Share Posted March 12, 2010 "The mission of General Motors is to design, build and sell the world's best cars and trucks. End of story," he said. "And that has never been as clearly stated by senior-most management before. Never." Gee. Bob. You were there 8 years, and they just went down hill faster and faster. But now that you're leaving things are poised to improve? Pardon me if I don't buy this. Lutz and Wagoner are the poster-children of the self-delusion that IS GM. Quote Link to comment Share on other sites More sharing options...
atvman Posted March 12, 2010 Share Posted March 12, 2010 Does anybody remember the clueless execs in the SNL skit from the fall of 2008? That may have been much closer to reality than we think as far as GM goes. Quote Link to comment Share on other sites More sharing options...
fusioneh Posted March 12, 2010 Share Posted March 12, 2010 Actually there is another good article along these lines on the True Delta website. Check out the second article in the Blog titled; Auto industry insanity defined It is at the following link; http://www.truedelta.com/blog/?session_code= and his report to GM is included. Makes for some very interesting reading! You also have to remember that his report was done 10 years ago... doesn't sound like too much has changed. Quote Link to comment Share on other sites More sharing options...
mackinaw Posted March 12, 2010 Share Posted March 12, 2010 Duh! Of course they were shocked. EVERYBODY was shocked. Just reread some of the Wall Street comments from several years back. Very few people said that mortgaging the company was a good idea. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 12, 2010 Share Posted March 12, 2010 (edited) This is what happens when a car maker listens to a "Car guy" product development chief in spite of what market research tells them. Makes you wonder with the retirement of Bob Lutz and the elevation of Mark Reuss and other former Holden personnel - all of that seems to send the message that GM has learned nothing regarding the RWD dream. I expect to see a widening of the gap between Ford and GM's delusional market vision. I can see GM bristling at the notion that they need wholesale changes and will go back to excessive production and incentives to get themselves out of this slump. I just hope that Toyota is dumb enough to keep following GM for a year or so... Edited March 12, 2010 by jpd80 Quote Link to comment Share on other sites More sharing options...
twintornados Posted March 13, 2010 Share Posted March 13, 2010 Sure he did. He got his ego stroked by the press for a decade and gets to retire with a golden parachute. ...and a Pontiac G8 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 13, 2010 Share Posted March 13, 2010 ...and a Pontiac G8 And a RWd Impala and a RWD Caprice.... Pity the Volt didn't have a 6.0 RWD V8 too, yeah that would work....:shades: Quote Link to comment Share on other sites More sharing options...
RangerM Posted March 13, 2010 Share Posted March 13, 2010 I don't know if it's even in GM's hands anymore. In my (little) world, I can name one person who would by GM or Chrysler, now. I know I won't, even if I like the product. Ford did things the American way--pulling yourself up by your bootstraps--by laying it all on the line. The GM/Chryco way was to get the government to plunder the U.S. taxpayer to pay for their sins. GM/Chryco made a deal with the devil and can rot, as far as I'm concerned. Quote Link to comment Share on other sites More sharing options...
SysEng Posted March 14, 2010 Share Posted March 14, 2010 (edited) When Ford Motor Co. mortgaged its factories and logo in 2006 to raise money for its restructuring, GM executives were shocked. Well, thats not the shock I'd be concerned about. When do these notes come due? :shades: And can Ford cover them??? Edited March 14, 2010 by SysEng Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 14, 2010 Share Posted March 14, 2010 (edited) Well, thats not the shock I'd be concerned about. When do these notes come due? :shades: And can Ford cover them??? Lending institutions have extended time for repayment due to Ford's payment consistency and strength after restructuring. Remember they made all those repayments while: 1. Everyone thought they would go BK in 2006 2. Whilst paying out voluntary redundancy for over 60,000 employees and closing plants 3. During $4.00/gas that killed F Truck and Explorer sales 4. Ordering and developing a full line of products for North America 5. Transferring Billions to UAW run VEBA pension plan 6. During the worst economic crisis in the past 75 years or so. 7. Whilst their competitors GM and Chrysler went bankrupt and were bailed out by the government 8. whilst GM offers 0% financing backed by the government, something Ford can't access... 9. whilst making a profit last year when many of its competitors didn't... 10. Whilst restructuring its major plants to build more cars and CUV and less trucks I can't believe some still think Ford is on the verge of defaulting payments, that concern is just not based in fact. As of December 2009, Ford had approximately $34 billion debt and just over $21 billion cash at hand, not the sign of a company about to go bust.... Edited March 14, 2010 by jpd80 Quote Link to comment Share on other sites More sharing options...
BrewfanGRB Posted March 14, 2010 Share Posted March 14, 2010 Lending institutions have extended time for repayment due to Ford's payment consistency and strength after restructuring. Remember they made all those repayments while: 1. Everyone thought they would go BK in 2006 2. Whilst paying out voluntary redundancy for over 60,000 employees and closing plants 3. During $4.00/gas that killed F Truck and Explorer sales 4. Ordering and developing a full line of products for North America 5. Transferring Billions to UAW run VEBA pension plan 6. During the worst economic crisis in the past 75 years or so. 7. Whilst their competitors GM and Chrysler went bankrupt and were bailed out by the government 8. whilst GM offers 0% financing backed by the government, something Ford can't access... 9. whilst making a profit last year when many of its competitors didn't... 10. Whilst restructuring its major plants to build more cars and CUV and less trucks I can't believe some still think Ford is on the verge of defaulting payments, that concern is just not based in fact. As of December 2009, Ford had approximately $34 billion debt and just over $21 billion cash at hand, not the sign of a company about to go bust.... Great post, jpd. Concern over Ford's ability to manage the "HUGE" debt is completely unfounded, IMO. Not only did taking on that debt save the company, but management has handled that debt in the right way. Extending repayment terms and dates is commonplace throughout the economy and lenders are happy to do so when they know their client is creditworthy. Seriously, folks, stop worrying about the debt. Quote Link to comment Share on other sites More sharing options...
nelsonlu Posted March 14, 2010 Share Posted March 14, 2010 This is what happens when a car maker listens to a "Car guy" product development chief in spite of what market research tells them. Makes you wonder with the retirement of Bob Lutz and the elevation of Mark Reuss and other former Holden personnel - all of that seems to send the message that GM has learned nothing regarding the RWD dream. I don't know enough about Reuss, but as far as I am concerned, Lutz's retirement is a very good thing for GM. The man has lost his marbles. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 14, 2010 Share Posted March 14, 2010 jpd. Don't reply to SysEng. If he can't be bothered to look up the notes and terms from he loan agreement, he shouldn't be here. Quote Link to comment Share on other sites More sharing options...
2b2 Posted March 14, 2010 Share Posted March 14, 2010 (edited) I don't know enough about Reuss... don't want to go this far off on a tangent in this thread but if you like HERE's a post from last Dec pertaining to Reuss Edited March 14, 2010 by 2b2 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 14, 2010 Share Posted March 14, 2010 jpd. Don't reply to SysEng. If he can't be bothered to look up the notes and terms from he loan agreement, he shouldn't be here. Ford's imminent defaulting of loans has to be the biggest myth going and strikes a nerve in me. Sorry, but that post was a bit of a rant. Quote Link to comment Share on other sites More sharing options...
RangerM Posted March 15, 2010 Share Posted March 15, 2010 I can't believe some still think Ford is on the verge of defaulting payments, that concern is just not based in fact. As of December 2009, Ford had approximately $34 billion debt and just over $21 billion cash at hand, not the sign of a company about to go bust.... Maybe I'm just being a cheerleader, but on top or what you've said, you've ignored the intangible or "x-factor", like perception of quailty that Ford has engendered in many (in their product), as well as the Toyota debacle. Perhaps the Toyota thing is not quite the sales driver as I think it's likely to blow over in the next year or two, but the positive perception that Ford models (and Ford Motor Company) seems to have achieved provides the most effective and cheapest form of advertising there is, word-of-mouth. They may have mortgaged everything, but at least it seems they used the money wisely, so far. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 15, 2010 Share Posted March 15, 2010 Maybe I'm just being a cheerleader, but on top or what you've said, you've ignored the intangible or "x-factor", like perception of quailty that Ford has engendered in many (in their product), as well as the Toyota debacle. Perhaps the Toyota thing is not quite the sales driver as I think it's likely to blow over in the next year or two, but the positive perception that Ford models (and Ford Motor Company) seems to have achieved provides the most effective and cheapest form of advertising there is, word-of-mouth. They may have mortgaged everything, but at least it seems they used the money wisely, so far. And that's the key, Ford didn't just do one thing and then stop. They did many things to help their cause and are still continue the process. GM are shocked, flabbergasted because they cannot look outside their business model. It's mental you see, until GM changes the way they see themselves and their company, nothing really changes. Change all the products you want, do this, change that but until they accept that ramming average quality half assed products down buyers throats doesn't work, nothing changes.... Quote Link to comment Share on other sites More sharing options...
SysEng Posted March 15, 2010 Share Posted March 15, 2010 Lending institutions have extended time for repayment due to Ford's ... As of December 2009, Ford had approximately $34 billion debt and just over $21 billion cash at hand, not the sign of a company about to go bust.... Hey jpd80, I may be a Ford fan, but I'm not that wet behind the ears either. Did you read the first and last lines of your post redacted above? Extending time is not a sign of a solid AAA loan agreement anywhere except in Obama's USA. AND, $34Billion of DEBT with $21Billion of cash on hand is still ( AT LEAST ) $13Billion in the hole! AND I'm assuming those $21B on hand aren't somebody else's money! As for Jensen there, y'all need to get your head outta' the sand. Company policy that ticks off $1.4Billion / year worth of customers in ONE market segment alone ( thats Cash NOT Credit ) doesn't help the bottom line ... AT ALL! Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted March 15, 2010 Author Share Posted March 15, 2010 As for Jensen there, y'all need to get your head outta' the sand. Company policy that ticks off $1.4Billion / year worth of customers in ONE market segment alone ( thats Cash NOT Credit ) doesn't help the bottom line ... AT ALL! Panther? HAHAHAHAHAHAHAHAHAHA Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted March 15, 2010 Share Posted March 15, 2010 AND, $34Billion of DEBT with $21Billion of cash on hand is still ( AT LEAST ) $13Billion in the hole! AND I'm assuming those $21B on hand aren't somebody else's money! How many times does it need to be pointed out that much of that debt is fully collateralized Ford Motor Credit debt? Nobody is ever going to force early collection on that. Quote Link to comment Share on other sites More sharing options...
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