Does the world need General Motors?
By Lou Ann Hammond
According to John Casesa, automotive research, Merrill Lynch & Co., "General Motors has $20 billion of cash, pays a $2 annual dividend and believes that it can someday make $10/share under the right conditions. This is not the making of a persuasive argument for concessions. Second, the current contract doesn’t expire until 3Q:07 and we believe it would be risky politically for the UAW leadership to convince its membership, which includes a large retiree constituency (which votes in elections for union leadership) to give up its attractive benefit package until it feels it absolutely has to. In conclusion, we think any discussions between GM and the UAW today represent the beginning of a long process that will conclude more than two years from now when the current contract expires, so, in our view, investors should not expect near-term relief from givebacks." Mr. Casesa is one of several analysts who have downgraded G.M. to a "sell" rating this year.
Back in December of 2000 General Motors announced the phase-out of Oldsmobile. Since then they have writtten down equipment and written off over $500 million on accrual in compensation to Oldsmobile dealers, who have separation agreements. Of the 2,802 dealers 99 percent of them have taken the Transition Financial Assistance Package (TFAP). Phasing out a product line is not cheap and it is an agonizing process. In the end the plant will probably be retooled and reopened. The employees will either go to work on another product line or will be given severance packages and start collecting their pension and health care costs, all of which will be added to the accumulating fixed cost General Motors is burdened with already.
The UAW used to hold a purpose for workers, but with every other car company manufacturing cars in America without the UAW is there still a need for them? The UAW does all it can to keep General Motors from shipping its production of vehicles to Mexico and China, but does it sit down at the table and talk to General Motors about what it can do to realistically keep General Motors, and itself, as an ongoing concern?
The lack of loyalty the car manufacturers are seeing is indigenous to the marketplace in general. It is brought on by disloyalty from companies to their employees and the general public watching big companies play shell games with their money. Forget the brand loyalty of yesteryear, folks are going for the cheapest they can find that still have the active ingredients that are needed, whether it be over-the-counter drugs, prescription medicine or cars.
And don’t expect a loan from the government either; Any company that has gone to the government looking for handouts or loans has asked their unions to make concessions beforehand. In the case of United Airlines some of the unions have conceded three times and they are still not out of the woods. General Motors shouldn’t dream of going to the government without asking the UAW to concede some of its benefits.
General Motors needs to find some answers for its product and legacy problems. GM is too big, with too many lives at risk to have it go under. General Motors is the world’s largest automaker, selling nearly 9 million cars and trucks worldwide last year. It is the third-largest business in the United States, with revenue of $193 billion last year.
Losing them would would be felt all around the world. According to Wards Auto, General Motors is a lot more global than most people realize.
AM GENERAL
AM General builds Hummer vehicles for GM. GM supplies technology and parts for the Hummer vehicles and has rights to market the brand.
AVTOVAZ
AvtoVAZ and GM have an assembly joint venture in Togliatti, Russia. Each owns a 41.5% stake. It currently produces Lada Niva 2123-based Chevrolet Niva small SUVs and will add output of Opel Astras.
BMW
GM supplies automatic transmissions to BMW. The two auto makers also are teaming up to jointly develop hydrogen refueling standards as part of a goal to have affordable hydrogen vehicles on sale by 2010.
BERTONE
Bertone builds the convertible and coupe versions of the Astra. Bertone also did development work for Saab on the 9X concept, but the production program for that car has been " postponed." It also designed the body for the GM Hy-wire concept car.
BRILLIANCE
Shenyang Brilliance, a joint venture between First Auto Works and Brilliance, has a joint venture building SUVs in Shenyang, China with GM.
CHINESE AUTOMOBILE
Taiwan’s Chinese Automobile Co. Ltd. assembles and markets Opels for GM.
DAEWOO
In late 2002, Daewoo completed the transfer of several of its assets to GM Daewoo Auto & Technology Co. Ltd. GM Daewoo is owned 42.1% by GM, 14.9% by Suzuki, 10% by China’s SAIC and 33% by former Daewoo creditors. Former Daewoo assets included in GM Daewoo are manufacturing facilities in Changwon and Kunsan, South Korea, and Hanoi, Vietnam, as well as nine overseas sales subsidiaries and parts operations in Europe. Daewoo supplies vehicles, powertrains and components to GM Daewoo from its Bupyong, South Korea, plant in a deal that runs for six years. GM Daewoo supplies components and vehicle kits for assembly by some Daewoo foreign joint ventures.
DAIMLERCHRYSLER
GM, Ford and DaimlerChrysler have several co-research projects under the direction of USCAR. Among them are projects on auto emissions and environmental pollution, advanced-battery and electric-vehicle technology and structural plastics. The three auto makers also have a partnership with the U.S. government called " New Vision for the 21st Century Truck Partnership," aimed at developing more fuel-efficient trucks and buses. DaimlerChrysler, Ford, GM, Nissan, Renault and Peugeot own stakes in Covisint, an e-business exchange. DaimlerChrysler, Ford and General Motors have a joint venture, named Route One, to create a uniform dealer credit application system.
FORD
GM and Ford are developing automatic transmissions together. Each will build the units at its own plant. GM, Ford and DaimlerChrysler have several co-research projects under the direction of USCAR. Among them are projects on auto emissions and environmental pollution, advanced-battery and electric-vehicle technology and structural plastics. The three auto makers also have a partnership with the U.S. government called " New Vision for the 21st Century Truck Partnership," aimed at developing more fuel-efficient trucks and buses. DaimlerChrysler, Ford and General Motors have a joint venture, named Route One, to create a uniform dealer credit application system. Ford and GM own a stake in Budget Rent-A-Car Systems in Australia. GM supplies automatic transmissions to Volvo. DaimlerChrysler, Ford, GM, Nissan, Renault and Peugeot own stakes in Covisint, an e-business exchange.
FUJI Heavy Industries/ Subaru
GM owns a 20% stake in Fuji Heavy and the two are co-developing vehicle technology and complete vehicle platforms for use by Subaru, Saab and other GM brands. GM, Fuji and Suzuki are working together on recycling initiatives in Europe to meet end-of-life regulations there. GM’s purchasing joint venture with Fiat performs some purchasing for Fuji. GM sells Saabs through Fuji dealers in Japan.
HONDA
Honda will supply 3.5L V-6 engines and automatic transmissions for the Saturn Vue as part of a 5-year agreement that gets under way in 2003. Honda uses GM’s OnStar communication system in its Acura vehicles.
ISUZU
GM owns 12% of Isuzu and the partnership between the two companies is extensive. GM makes Isuzu-based medium-duty trucks for Isuzu at its Flint, MI, plant. GM’s purchasing joint venture with Fiat performs some purchasing for Isuzu. The two exchange components, including engines, and share engineering and some sales and distribution activities. Omnibus Transportes SA in Ecuador, 53% owned by GM, assembles GM, Suzuki and Isuzu vehicles. GM owns 57.7% of General Motors Kenya Ltd., which assembles cars and Isuzu commercial vehicles. Joint venture GM Egypt S.A.E. is owned 31% by GM and 20% by Isuzu. Industries Mecaniques Maghrebines in Tunisia is owned 4.8% by GM and 2.4% by Isuzu. GM owns a minority interest in Isuzu’s diesel engine businesses. Isuzu-General Motors Australia Ltd. is a 60/40 Isuzu/GM joint venture. GM also assembles Isuzu trucks in several overseas countries. GM owns 51% of General Motors Isuzu Commercial Truck LLC.
LOTUS
GM and Lotus have developed engines together. Lotus Cars is building GM’s Vauxhall VX220/Opel Speedster sports car at its Hethel, U.K., production center.
MAGNA
Magna builds the Saab 9-3 convertible in Austria.
MG ROVER
GM supplies transmissions to MG Rover.
MITSUBISHI
A Mitsubishi subsidiary supplies parts to GM under a contract that runs through 2005.
NISSAN
DaimlerChrysler, Ford, GM, Nissan, Renault and Peugeot own stakes in Covisint, an e-business exchange. Nissan gets a version of the vans co-developed by Renault and GM.
PEUGEOT
DaimlerChrysler, Ford, GM, Nissan, Renault and Peugeot own stakes in Covisint, an e-business exchange.
PININFARINA
Pininfarina performed design work for the Buick Excelle, based on the Daewoo Nubira from joint venture Daewoo Auto & Technology Ltd., owned by GM, Suzuki and Shanghai Auto. The car is built at the Shanghai-GM joint venture in China.
PORSCHE
Porsche helped develop 2.5L 6-cyl. engines produced by GM Australian subsidiary Holden’s.
RENAULT
GM supplies axles and other components to Renault. GM sells Argentina-built Renault Trafic vans in Brazil and Renault sells Brazil-built GM models in Argentina. GM and Renault collaborated on the development of light-commercial vans and the two build vans for each other. Teksid, owned 33.5% by Renault, supplies cylinder heads to GM. DaimlerChrysler, Ford, GM, Nissan, Renault and Peugeot own stakes in Covisint, an e-business exchange.
SHANGHAI
GM and Shanghai Automotive have a car-building joint venture in Shanghai, China, called Shanghai-GM Automotive Co. Ltd. The JV also produces engines, transmission and stampings and has responsibility for vehicle marketing and distribution. GM and SAIC also have a vehicle assembly JV in Yantai, China, owned 25% by GM, 25% by SAIC and 50% by Shanghai-GM Automotive. GM and SAIC are partners in SAIC-Wuling Automotive Co. Ltd., a vehicle assembly operation in Liuzhou, China. SAIC-Wuling is owned 51.1% by SAIC, 34% by GM and 15.9% by Liuzhou Wuling Automotive Co. Ltd. GM Daewoo Auto & Technology Co. Ltd. is a joint venture owned 42.1% by GM, 14.9% by Suzuki, 10% by SAIC and 33% by former Daewoo creditors. Former Daewoo assets included in GM Daewoo are manufacturing facilities in Changwon and Kunsan, South Korea, and Hanoi, Vietnam, as well as nine overseas sales subsidiaries and parts operations in Europe.
SUZUKI
GM owns 20% of Suzuki. Suzuki holds a 0.7% stake in GM and a 2% stake in General Motors de Argentina. The two companies have collaborated on vehicle platforms and co-own an assembly venture in Canada, CAMI Automotive Inc. Suzuki and GM are assembling vehicles together at GM de Venezuela CA. The cars are sold through GM’s sales network. Suzuki builds vehicles for GM in Japan. GM’s purchasing joint venture with Fiat performs some purchasing for Suzuki. GM Daewoo Auto & Technology Co. Ltd. is a joint venture owned 42.1% by GM, 14.9% by Suzuki, 10% by China’s SAIC and 33% by former Daewoo creditors. Former Daewoo assets included in GM Daewoo are manufacturing facilities in Changwon and Kunsan, South Korea, and Hanoi, Vietnam, as well as nine overseas sales subsidiaries and parts operations in Europe. GM, Fuji and Suzuki are working together on recycling initiatives in Europe to meet end-of-life regulations there. Suzuki uses GM transmissions in certain vehicles.
TOYOTA
In the U.S., New United Motor Mfg. Inc. (NUMMI), a GM-Toyota joint venture, assembles Corolla derivatives for each to market in North America and Japan. NUMMI also builds Toyota pickup trucks. In 1999, GM and Toyota signed a 5-year research and development agreement to develop advanced propulsion technologies.
OTHER
GM Nigeria Ltd., owned 60% by UAC, 30% by GM and 10% by its employees, builds light and heavy trucks and buses. GM has a vehicle-building joint venture, PT General Motors Buan, in Indonesia. GM has a 25% stake in ELAZ-GM, a venture with Elabuga Automotive Works that produces SUVs from knock-down kits in the Republic of Tartarstan. GM has a 49% stake in South Africa’s Delta Motor Corp. France’s Groupe Henri Heuliez S.A. will build a new 2-seat roadster for Opel beginning in 2004. India’s Hindustan Motors Ltd. supplies engines to GM for use in locally built vehicles.
Fast05 wrote:Does the world need General Motors?
FUJI Heavy Industries/ Subaru
GM owns a 20% stake in Fuji Heavy and the two are co-developing vehicle technology and complete vehicle platforms for use by Subaru, Saab and other GM brands. GM, Fuji and Suzuki are working together on recycling initiatives in Europe to meet end-of-life regulations there. GM’s purchasing joint venture with Fiat performs some purchasing for Fuji. GM sells Saabs through Fuji dealers in Japan.
That is not true anymore.^
&
Q: Does the World Need GM?
A: If GM was not here, who else would every one poke fun of?
Seriously, yes it is needed. Even though the 85% cars in N-A are still lacking (not the trucks), GM still provides good products for the rest of the world, with it in some cases-- jobs.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
They forgot to add another major part of GM that nobody knows about (yet you probably see at least once a day), is EMD "Electo-Motive-Division"....Railroad Engines. Yup GM builds over 40% of the worlds railroad engines.... and almost 50% of them in the US, the other roughly 50% being GE.
Later
Skinny J
Tara, I will love and miss you forever, you will never be forgotten
http://tara-nagel.memory-of.com/
Yes the world needs GM U drive a Cavy right? U obviously like ur Car hence where would u be if U or we didn't have GM? I know I don't wanna see GM leave the industry I'm 98% of the other people on here do not either.
I'm pretty sure GM sold its shares in Fuji Heavy Industries. It was all over the NASIOC boards.
Yes the world NEEDS GM, however GM needs a major restructuring. Currently they are too large and as anything that gets to tall, it's starting to sway.
It would be better if the company actual ran like independent companies instead of just branding everything different. GMC, Pontiac, Saturn, Chevy.
-Chris
All very interesting information.
PRND321 Till I DIE
Old Motor: 160whp & 152ft/lbs, 1/4 Mile 15.4 @88.2
M45 + LD9 + 4T40-E, GO GO GO
Yeah we need GM....I would hate to work on fords and other crap all day
the biggest problem GM has is the union right now, I'm pro union, but not if they won't make concessions for the good of the company.
._____________________________.
Causa latet vis est notissima
DIY Clear 03+ Headlights
I must say, I still hate GM for killing the F-Body cars. A sad day for the F-Body drivers/collectors. And yet, Ford just took the cake with the 05' Mustang's look of the old versions just to rub it all in GM's face as if to say we were first, and we allways will be. Oh freakin well.... -Josh
Grimor is a P.I.M.P^^^^^^^^^ LOL
Custom97sunfire wrote:Yes the world needs GM U drive a Cavy right? U obviously like ur Car hence where would u be if U or we didn't have GM? I know I don't wanna see GM leave the industry I'm 98% of the other people on here do not either.
I mainly started this topic to see what other peoples opinion was. I have and probably always will own GM vehicles. I know they have their problems (electricle systems, ball joints on S10's, brake sensors on silverados) but it's still a better product than anything FOMOCO builds.
GM is the auto industry
1989 Turbo Trans Am #82, 2007 Cobalt SS G85
Rodimus Prime wrote:GM is the auto industry
why is that? you honestly believethat if GM went away automobiles would just disappear
Sizzy's Security (NauticaZ) wrote:Rodimus Prime wrote:GM is the auto industry
why is that? you honestly believethat if GM went away automobiles would just disappear
Of course automobiles wouldn't go away. But no one will disagree when I say that GM is a leader in the automobile industry, and always will be. Yes, they're having a hard time right now, but even in their hard times, they're still the number one automobile manufacturer in the world. GM will never go away...ever....
And GM is a leader in the industry because GM is often times the first in the industry for alot of technological advancements. The GMC Envoy was the first SUV in it's class with a DVD player option. GM's are still the only manufacturer to have OnStar, and yes I realize that this is because of a contract, but there's nothing even close to OnStar in any other vehicles.
GM sells more trucks than any other company. And all those Ford commercials saying they have the number one selling truck, is merely a loop hole. If you add the GMC sales and the Chevrolet Truck sales together, it's imensely higher than Ford.
I'm not going to say that GM never makes mistakes, because sometimes it takes them too long to get with the program, such as building the Cavaliers and Sunfires on the same dated platform for almost 20 years. Not saying that I don't love my Cavalier, but we all know they could have upgraded it to make it more competitive with the Civic and other foreign cars.
Yes, we need GM. I, as well as the rest of my family, all own GM's. And I will probably always own them, unless they start making cars that are not up to quality. But until then, I'll promise you that GM is not going anywhere.
I don't need GM but they pay me a great Pay Check and I will always buy GM. I have always liked the style that GM has. But hey that is me and that is what puts Food on the table and roof over my head.
Hey Guys gas prices are going back down. That means it is alright to buy a Trailblazer and Envoy. LMAO 22mpg
Of coruse the world needs the General. Think of the economic implications if they were to go under. The body of people who would lose their jobs. The loss of technological breakthroughs. The loss of one of the greatest American companies out there. I won't go into specifics, but the loss of GM would really hit the automarket hard and world economy as well. When you go global, you affect just that, the globe.
I'll have a sig someday....................
Nissan for sale drop me a line!
I love my gm cavalier,its only 20 years old but,LOVE THE HELL out of it,even if its real,real old.
Of course the world needs GM.
I think you would have to had lost contact with reality to imagine that the other way around.
You don't have to like GM, however. I'm still pissed off about the Roger Smith years (most of the cars were crap! They did everlasting damage to the company!).
Look at that article again and imagine which company could step in to replace GM in those areas. I don't think any other company in the world could.
George (geozinger)
'95 Sunfire GT-my second Pontiac from Hell!
'97 Cavy Beater-still running like a champ!
'04 Sunfire - my kid's car, but I get the bills...
'09 Pontiac G6 - Sport Package 1
GM took the Firebird away because it's appeal has gone down, it was getting to the point where everyone owned one.
Don't fret it will comeback, just like the GTO, and the charger.
At least they gave us the GTO, and just wait for the Solstice GT, that's gonna kick ass. 240HP+ or so in that little car
-Chris
the world does need GM, can you imagine the number of people jobless if GM went under? my family owns GM always have always will, my dad has owned nothing but GM's his whole life... he'd honestly drop dead if GM went under...
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Now Blazing: Black Domina
jkhd03cav wrote:
And GM is a leader in the industry because GM is often times the first in the industry for alot of technological advancements. The GMC Envoy was the first SUV in it's class with a DVD player option. GM's are still the only manufacturer to have OnStar, and yes I realize that this is because of a contract, but there's nothing even close to OnStar in any other vehicles.
Honda uses GM’s OnStar communication system in its Acura vehicles. Probably part of the deal for GM getting Motors and Transmissions for the Saturn Vue from Honda.
Sorry, but it's a fact. Unions are killing America. They've out lived their purpose. And are the number one reason why great jobs are leaving America and going to Mexcio, China, and India.
They are a corrupt and useless group. I wish i had a job where i did nothing all day but sit back and collect my share of 30bucks a month from 100's of hard working people. while i drove around in my new car and did nothing. I've never been in a job where the union did anything but screw us into getting paid less than anybody else doing the same job.
we need to either regulate and reform unions or drop them entirely before the only good jobs left in America are burger flipper or Wal-Mart greeter.
"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net
Another interesting fact about GM. When the US was attacked on September 11th, 2001, and the US financial markets were gloom and doom, GM offerred the 0% financing incentive to get Americans out buying new cars which basically "saved" the country from falling into a depression. I am not saying buying GM cars alone did this feat, but it rallied other companies to follow GM's lead and kept the money flowing through the economy.
"...nevermind maneuvers lieutenant, just go straight at them!"
-Admiral Nelson at the Battle of Trafalgar
JAMMIT wrote:Sorry, but it's a fact. Unions are killing America. They've out lived their purpose. And are the number one reason why great jobs are leaving America and going to Mexcio, China, and India.
They are a corrupt and useless group. I wish i had a job where i did nothing all day but sit back and collect my share of 30bucks a month from 100's of hard working people. while i drove around in my new car and did nothing. I've never been in a job where the union did anything but screw us into getting paid less than anybody else doing the same job.
we need to either regulate and reform unions or drop them entirely before the only good jobs left in America are burger flipper or Wal-Mart greeter.
that's typical ignorant anti-union stereotypes.
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Causa latet vis est notissima
DIY Clear 03+ Headlights
^^^ No that is a fact, and what you said is typical ignorant pro-union spin. So tell me union nut swinger? if the union is sooooo good for America, then why are the best "union" jobs going elsewhere?
It's a corrupt organization that bilks hard working people out of money, and has outgrown it's use in modern day America. Show me proof Unions are good for the country and not just for union members and i'll shut up.
"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net
