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GM is definitely going through some hard times with the declining US market and still managing to blow through $1 billion bucks a month.
GM is trying to cut costs across the board, which may lead to a delay in the introduction date of the new Chevy Cruze and the next-generation Chevy Malibu. Last week it was announced that the upcoming Cadillac CTS Coupe and next-gen Buick LaCrosse are being delayed. Now BusinessWeek is reporting that the Chevy Cruze is going to be delayed a year until 2011 (2012 model) and the next-generation Chevy Malibu is going to be delayed 6 months until 2013.
The delays are expected to help GM save some money, but is it smart to delay the introduction of the Cruze? GM needs more quality small cars in its lineup and 2011 is not soon enough.
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Comments (8)
I don't get it, the cars they need to market they will delay.
Why let Honda, Toyota, Mazda get furhter ahead.
Stick a fork in em.
Posted by zippy | October 27, 2008 2:34 PM
Posted on October 27, 2008 14:34
I completely agree. Please stick a fork in em! They created their own problem, now they get to wallow in their own mess. Good riddance to GM / Ford / Chrysler. I'm sure there is another venture capitalist waiting in the background to start up an American car company that might actually succeed.
-jOSH
Posted by Josh | October 27, 2008 3:45 PM
Posted on October 27, 2008 15:45
I must point out that unions and their burdens are what is killing them not the cars they make. I believe GM is still the number 2 car manufacture in the World. Their profit are siphoned off by employees that haven't worked for them for two decades.
Posted by RX-7 Guy | October 27, 2008 4:29 PM
Posted on October 27, 2008 16:29
the question of if it's smart to delay the cruze introduction is little more than theoretical. gm doesn't have a choice. they've suspended 401k contributions for their white collar workers, they're examining every utility bill for places to cut costs, and they announce new plants to idle faster than new model designs.
is it smart to delay the cruze? of course not - because who (really) wants a cobalt? but if you're a broke college grad who chose the wrong career path and spent all his savings buying friends drinks, you're gonna wind up eating ramen noodles even if your dieticians insist it's not a healthy diet. what choice do you have?
but after so many bad decisions, what did you think you would wind up eating? healthy profits from a healthy line-up of world-class cars purchased by happy consumers based on the advice of glowing consumer reports?
seriously.
Posted by javelinwarrior | October 27, 2008 4:48 PM
Posted on October 27, 2008 16:48
@ javelinwarrior:
Your statement about that college student(s) sounded somewhat surreal, and if you were actually describing your current predicament, fear not my friend. A cobalt will certainly get you to point A and to point B and back. As far as the noodles go, add a little chili or some other like filler and you should be fine. At least you will have your spending under control, cheers!!
Posted by worldbfree4me | October 27, 2008 5:43 PM
Posted on October 27, 2008 17:43
Ford is the only American car company being smart about the downturn. They have sold off a lot of their dead weight divisions in which for some god knows reason GM still hasn't. Ford is going to a global platform with all of their cars very soon which will cut cost by a lot and will bring a lot of popular Euro Ford to the U.S. finally. GM and Chrysler on the other hand only have a couple cars in their lineup that use a global platform.
Ford is in the best shape to rebound out of 3 american car companies and they will. GM and Chrysler on the other hand are in deep trouble and are showing no signs of rebounding anytime soon.
Posted by SteelCity1981 | October 27, 2008 5:58 PM
Posted on October 27, 2008 17:58
@ SteelCity1981,
Yeah, unfortunately Ford has has stuck the fork in Lincoln. Their new commercials for the MK whatever are kind of cool, but the car is a joke. 0-60 in 7.5-7.8s for a $35-40k luxury car when a $25k Accords/Camrys/Altimas are nipping at high 5's. Not to mention the interior is still designed for old people that don't exist anymore.
Posted by Noya | October 27, 2008 8:26 PM
Posted on October 27, 2008 20:26
@SteelCity1981:
Ford is the only American car company being smart about the downturn. Agreed!
Well they started to rot earlier and have better management.
GM should get its head out of it a..:
1. Sell Saab to Hyundai, they are practically waiting.....
2. Secure the overseas companies in independent units, let the US part rot-out.
3. Get a pension bailout from the state, and
4. restart with VC and shareholding from your overseas subs and some large dealers...
If not, well China Inc might offer US50m for the lot....
Posted by lowest iq | October 28, 2008 3:54 AM
Posted on October 28, 2008 03:54