Apparently GM is considering selling Saab, Saturn, and Pontiac in addition to already planned sale of the Hummer brand as part of a larger scheme in order to get congressional approval.
Apparently GM is considering selling Saab, Saturn, and Pontiac in addition to already planned sale of the Hummer brand as part of a larger scheme in order to get congressional approval.
Yes Saab needs to go. But Saturn seems to be a market share growth division (of late) and Pontiac provides cars for the GMC dealer network (along with Buick) – I personally think the GMC-Pontiac platooning with Buick was a good idea (Olds was deadweight)
Be interesting to see if the sales include passing along the union entanglements and the ball and chain of the lavish obligations to the retirees and those employed without the inconvenient need to actually work. Without shedding those encumbrances, the deal is just a very accurate miniature of the stinking carcass of the whole.
Chapter 11 was made for just such financially crippled businesses.
And for those who cleave to the canard of the public’s unwillingness to buy cars from a company in Chapter 11 reorganization I have just two words – Third Party. As in third party warranty arrangements which are widespread and effective and the wide availability of spare parts from third party manufacturers include those who provide original support parts to GM/Ford/Chrysler.
Chapter 11 – bring it on!
Dilbertnomore,
Third party parts manufactured by. . ?
J316, if you have a need for automotive parts now for any car produced by any manufacturer over the past 50 years and Google the part description you will find (with rare exception) a legion of sources for it at your fingertips. You place your order and receive the package. Upon examination of the part you note the manufacturer is not GM or Ford or Chrysler, but one of many suppliers from sources in the US and around the world. Many are providers of very specific parts such as body components or fasteners or sensors or wear parts produced by quite small and specialized companies. Others are from larger concerns that manufacture vast quantities of more common parts such as spark plugs, belts, hoses, batteries and lighting components. The sources are there and will only expand to meet any additional need.
Remember, the third party suppliers are the crutch that will give buyers of GM, Ford and Chrysler products the confidence to continue to be customers even as they restructure to become viable companies shedding the weight of the unions and the over-the-top benefits lavished on current and former employees.
If Ford, GM and Chrysler do restore themselves to solvency they will continue to find their products supported by third parties, just as they do now and will in the transition.
I use this system myself. I own a car that ceased production in 1995. Fewer than 5,000 of these cars were ever imported into the US. I have had no problems whatever getting any part I have needed to keep all its systems fully functional – and at reasonable prices. Some of the parts have come from small one or two person operations that have observed a need for improvements over the original manufacturer’s part and provided a ‘better mousetrap.’
The lack of support issue being raised by the unions and others who want to perpetuate the mess that exists is just a canard.
#2. Agreed. No bailout. Chapter 11 is the right solution.
Tgs: DITTO!
If Ron Gettelfinger is so stressed over “dire” consequences if the Big Three don’t get bailed out, why doesn’t he unilaterally fall on his union made sword and suggest that the UAW will give something up – not just the Big Three.
Actually, they wouldn’t sell off Pontiac (you don’t want a competitor out there) but suppress it, as they did with Oldsmobile a few years ago. One way to save money is to stop making duplicate cars with different name plates and double the marketing, overhead in having extra dealerships, executives, etc. Chevy and Cadillac nameplates would cover the overwhelming majority of the upper and lower end cars (and are their two better selling ones anyway). The auto folks here in Detroit have said they could do away with Buick and Pontiac although they have contracts with dealerships that could make things messy.
Saab and Hummer and niche markets and could be sold to infuse cash into the company.
Stjohnspriest in Detroit, son of a retired Chrysler exec.