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Is the glass half full or half empty?
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Posted by No.9 (more from No.9) on Sun, 5 Jun 2005 10:04:31 Share Post by Email
In Reply to: Re: The Ugly, AlS, Sat, 4 Jun 2005 08:50:56
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Getting the right product is paramount. It's obvious GM cannot afford another Aztek fiasco. Only the Japanese can get away with ugly ducklings like the Scion cube, Honda Element, Honda Ridgeway, Infinity FX etc...
I think GM new products are pointed in the right direction. Although they are not breaking records, they are steadily gathering sales. I was surprised to see a neighbour trade his black Subaru Legacy GT, a very nice package, for a very dignified looking Black BUICK Allure (LaCrosse in the US). So if folks are trading Subarus for Buicks, I would think GM is doing something right. The Chevrolet Cobalt seems like an excellent small car, a segment in which GM has never succeeded to shine and the Pontiac G6 is a much better car than the Grand Am it replaces, thanks largely to it's Epsilon platform.
But one has to admit that they have a long way to go to reverse the trend and time is running out as they are in a downward spiral which the junk bond status is accelerating. Their borrowing rates are going to increase significantly and if they are loosing that much $ per car (wow!), you have to expect more plant closures. Also, besides very generous employee benefits, the big three, specially GM, have another major hurdle to tame, and that's to improve their relations with suppliers. So the road ahead is going to be bumpy and without the lucrative SUV craze to absorb the shocks, things are bound to break.

posted by 64.18.165...

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