Rumor - GM to put Chevy Volt program on hold / CUt staff today

Killing R&D on the product that will help save and maybe redefine a failing corporation is very bad news indeed.

 

I think the rumor has been 'leaked' to apply pressure on the Feds to give GM what they want..... money! GM knows how much public hype has been built and how many people have signed on with high expectations, they are going to leverage that 'public support' any way they can.

 

Rumor: GM To NOT Put Chevy Volt Program On Hold, Cut Engineering Staff Tomorrow


Revised Headline !!!

 

a somewhat related blurb i saw that said gm was looking at "more aggressive cost cutting measures" and one was to "reduce the cost of R&D for new models"...

kinda thought that they should be putting more into the product hoping to get more out of the product when it hits the market.

i also the big 3 bigwigs hit up DC for more money to pay their health care benefits.

 

Since GM is denying this ..... my guess is that it's true. You'd be a fool to buy a GM regardless. They have now killed the electric car .... twice.

... Brad

 

I think you US guys should connect financial aid to your ailing automakers by forcing them to improve fuel efficiency. No improvement in efficiency, no money.

 

Not only that, I think the government also needs to make it clear to the automakers that they cannot continue with business as usual.

The Detroit 3 has been losing billions for decades while their CEOs line their pockets with fat paychecks and bonuses. Unless they fundamentally change how these auto companies are run, a bailout will never work, no matter how much money the government throws at them.

 

GM? Lie?
Well let's look at the track record. According to GM:

"There was no waiting list of 5,000 prospective EV1 buyers" - - - LIE

"We didn't crush the EV1's ... we gave 'em all to universities" - - - LIE

etc.

Why do I have a sick feeling in the pit of my belly?

 

Agreed, that makes perfect and logical sense.

Thus, it will never happen

The money will be used to buy a few corporate jets, eg the Gulfstream 550, hand out lavish CEO and Board of Director bonuses, with a few bucks thrown at union leaders to keep them quiet

 

Hey, they need the $15 billion bailout (or was that $60 billion?) so they can pay the golden parachutes of their CEOs when they declare bankruptcy and shut down operations.

(I heard a radio program mentioning the CEOs would work for $1 a year if they get the bailout. But it didn't say whether they'd still get their stock options, bonuses, retirement contributions, golden parachutes, and general graft, all of which dwarfs their "salary.")

 

now GM is asking for 34 billion, BUT...

easy to notice that of the big 3, the only one who marketed a viable hybrid (and the first to announce a full EV) Ford, is the only one not asking for a handout... just a line of credit...

sorry, this just reinforces my attitude that if GM cannot help themselves, we cant help them either. its like an alcoholic getting cured;

THE FIRST STEP TOWARDS A CURE IS ADMITTING YOU HAVE A PROBLEM (OR IN THIS CASE, ADMITTING YOU WERE WRONG ABOUT HYBRIDS) GM

 

I watched the entire 6 hours of hearings yesterday:

GM is not asking for $34 Billion. GM is asking for $4 Billion immediately to take them through March 1st. They are then asking for an additional $14 Billion after that.

Ford is asking for an $9 Billion line of credit to be used if their condition gets worse of if GM fails. If GM fails the supplier base will fail.

Chrysler is asking for 7 Billion immediately to stay out of bankruptcy.

All total they are asking for $34 Billion over the next year.


I think Senator Bob Corker from TN made some of the best points. I especially liked his comments on Chrysler. He pointed out that no one believes Chrysler is viable as a separate company and that they are simply looking more more time to make an agreeable sale or merger. He also pointed out that Chrysler is owned by Cerebus, a private equity company with enough cash on hand to give Chrysler the $7 Billion it needs but refuses to because it would be a bad investment. If you parent company won't give you a loan why should the federal government? That pretty much shut down the Chrysler CEO on the spot.

 

Ford has cash because about a 18 months ago they mortgaged everything inculding ford family items. HAs nothing, I repeat nothing to do with having a hybrid.

 

I gotta agree w/ Malorn on the fact that hybrids do NOT account for Ford's relatively better financial position. A cash loser to date, without a doubt.

On the other hand, they have the best AVAILABLE hybrid tech of the 3 with one viable hybrid (Escape) already on the roads and at least 1 more (Fusion) just months away. For me, hybrids do make Ford a slightly better proposition to loan money to. But in no way have they generated cash flow from them. Now if only they would cease production of models with huge excess inventory already on the lots and deliver hybrid Escapes and Fusions in volume, along with small fuel efficient traditional cars...

She's a big ship that needs to turn on a dime.

 

well, we can get into pissing match no problem, but there is a general perception here that GM will not survive so Ford is getting a boost in sales because of it. i have several family members working the retail end at Ford and we were at dinner Tuesday (dad was in town from Texas for holidays and this was send off dinner) and both were talking about 3 long time GM owners in looking at trucks because they thought they would be out in the cold if they bought a GM product. one even commented he could get a GM truck for around $1500 less, but simply did not want to take the chance. he owned a business, was getting 3 trucks and needed "no BS" warantee coverage.

now, is that perception valid?? whether it is or isnt what THEY SEE is a company that is changing to fit the demands of the consumer. Ford is doing hybrids and is widely regarded as the unquestioned leader of that field among the big 3, even among pickup truck owners.

besides, what difference does it make how Ford got the money?? they knew they needed it, made the tough decision and got it. GM knew they needed it as well, but decided to wait until the last second and ask for a handout.

 

Toyota built a hybrid (Prius) that gets 50 mpg. A nice 5 door sedan of decent size and acceptable price. What more could you want? And why can't GM et al do the same? It's a sad comment on the leadership at GM, Ford et al. They have come a long way down.

It looks like GM is overreaching with the Volt--which is too expensive. And why didn't Ford come out with a 50 mpg hybrid Focus before the SUV hybrid? Short-sighted. And they are paying for it now.