The United Auto Workers (UAW) strike against American Axle (AA) will claim its second automobile plant next week. In addition to the Cobalt/G5 plant, Automotive News [sub] says the strike threatens GM's Detroit-Hamtramck assembly plant (Buick Lucerns, Cadillac DTS). Buick probably won't mind the shutdown; they're in the same boat as Chevy and GMC with a 100-day supply. Cadillac isn't in quite as good shape, with a 59-day supply of DTS'. Automotive analyst Erich Merkle doesn't think losing a second car plant will be enough to get GM involved in the strike settlement. "It's a little bit of an 'ouch,' but it's certainly something that's survivable. GM could still probably afford to stand on the sidelines a little while longer." While the strike is a relatively inexpensive (and entirely blameless) way for GM to reduce bloated inventories, keep in mind that the American automaker counts a "sale" when a vehicle leaves the factory. When the new quarter starts (April 1), the strike will whack The General's bottom line. That means interceding in the strike, encouraging AA to ramp up offshore production or facing Armageddon. If (and most probably) when production restarts and GM begins channel stuffing replacing inventory, you can bet they'll crow about record production and sales for that quarter.
Find Reviews by Make:
Read all comments
I saw an HHR SS on the road yesterday. I think that car symbolizes just how hopeless GM’s turnaround is. The HHR SS is so cheesy and plasticy and altogether “Pontiac”-like in appearance that it is pretty clear that GM isn’t learning much from their mistakes.
I wonder why they didn’t wait until this quarter or next for the deferment that lost them billions… I’m sure someone at GM saw this coming. The average shareholder would at least have something tangible and probably irrational to blame the 39 Billion loss on a 60+ day AA strike.
It almost makes me wonder what GM has up its sleeve to pull out and blame on this strike, other than (much) reduced “sales” April 1st. Do they have further deferments they are going to say the strike created a need to take? Look forward to by the numbers, Frank, at least it should be as good (bad?) as the last one.
YEAH! Get the pitchforks and ropes! Let’s hang GM!!!
Cheesy?!? How do you rationalize the popularity of “American Idol!!??” Or the WWF?!!? Americans LOVE Cheezy!!
Tickle me Elmo?
Chia Pets?
Pet Rocks?
Oprah?
Monster Trucks?
There really seems to be a gang mentality when it comes to bashing the Big Blue. Is the band wagon big enough? If it was as big as a new Suburban , it still wouldn’t hold all the “me too’s!”
Like them or not, they’re a staple in the U.S. economy and how their business goes, so does most of the economy. The feeder industries would have a hard time to re-set their game plans in this depressed economy.
Yeah, they could’ve done thngs better and really don’t seem to have a handle on things yet. But then neither does GW, and I still see gads of the “W04′ stickers around.
Maybe the shift to bring Fritz directly in the line of fire will get things in line. He was, afterall, the only one to have actually stated a date for the multi-turn turnaround to have taken hold; Or else.
GD
gawdodirt wrote:
Maybe the shift to bring Fritz directly in the line of fire will get things in line. He was, afterall, the only one to have actually stated a date for the multi-turn turnaround to have taken hold; Or else.
I seemed to have missed that. When does he predict?
It was re-stated in one of the edit’s here. 2010, or else.
Back to the topic. It seems that even with car plants closing, GM still sells a butt load of product. Whatever the reason, they’re movin metal.
From Automotive News Feb. ’08 numbers:
Toyota 182,169
GM 268,737
So plastic or not, cash on the hood or not, product is moving.
And, the much beaten topic of poor brand management. GM seems to move the 191 Lambda platform, in three flavors, faster than the Ford Edge, in one flavor. And almost as much as the whole Lexus car brand.
GM’s Lambda 191 (Enclave, Acadia, Outlook), model ONLY
11,976
Lexus (TOTAL) 12,203
So, why the GM hatred?
Gawdodirt–McDonalds sells more burgers than anyone else, does that make them the best?