And it gets worse for GM.
 

GM announced this morning they will be closing the OKC, OK plant sometime early '06. The Trailblazer and Envoy is built here. 2400 people will be on the streets in early '06. Another strike against the general if you ask me.

Mike

GM is laying off 30,000 people and closing nine plants. They need to build something that people will buy. They better hit the Camaro design out of the park or turn the lights out. Nothing they build excites me beyond the Z06 and I dont think i will be buying one anytime soon.

Guys, you really need to look at the bigger picture, GM HAS to downsize, foreign competition is at an all time high, and the market share is smaller. You should look at this as a step in the right direction for a return to profitability. Many of those plants closing are products being phased out anyway, or being replaced with another built elsewhere. GM could build the best car in the world, and it will still not sway many people to a domestic product they are set that foreign is better, period. The Camaro is NOT the answer, just ask Ford, they sell a ton of them, and they are in the crapper as well right now....While I do feel for the displaced workers, this IS the right thing to do.....

I do get the impression that no matter what GM does it is perceived as "wrong".....We are losing tons of money each quarter, and people say "GM is in trouble", so GM takes major step to return to profitablility, and people say "GM is in deeper trouble"....No win situation.

For the record, The Impala, G6 (depite what you read), the Solstice, DTS, Cobalt among others are selling very well. The overhead and excess capacity are the problems...which they are trying to correct.

Yep. What he said. :yes:

No matter what we do, the media (and people in general) will always take it with a grain of salt. This is essentially why GM could have NEVER built cars like the Honda Element or Scion XB. If they had been badged as Pontiac's or Buicks, the press would have eaten them alive. But because they're Japanese cars...well now...they're the greatest thing since sliced bread!

I gotta admit. I'm getting a little nervous about "the unveiling" in January. With so many cynics nowadays, I wonder if it'll even be worth it. :(

Here's a Forbes article that brings up a few points.

I only buy GM cars and trucks,but that's just me and my family. :patriot:

Jeff I have to agree with you some people think import's are just better.They won't even go look at domestic cars.

Does ANYONE remember Pearl Harbor?

No. Apparently not enough. :rolleyes:

I will NEVER buy an oriental car. EVER.

I do..
And if you don't think we are still at war you better open your eyes.
Some of you may accuse me of being narrow minded but I would NEVER
buy a foriegn made car...
Especially cars built in Japan (or China. They will be selling cars here soon). We as Americans need to support the American worker.. Over "there" it is not a level playing field in regards selling U.S. made cars over seas.
They screw the American manufacturers with unreasonable tarrifs so our cars cannot be sold at a competitive price.
Please do not play the:
"did you know that Honda's/Toyota's are built in America" card.
Where do you think most of the profits from these Japanese cars that are "built in the U.S." go?
Thats right over seas.
End of rant.. I feel better now.
Scott

I have been watching the GM situation fluxuate for over a year now and I have stood by and will continue to stand by some simple business rules. First and foremost is the business cycle on the firm level. We just need to remember that this is General Motors. You may not currently have much confidence, or see much growth in the short run, but this is a huge company that has been around for a long time. They are not going anywhere!

Economically the US is hitting its Post-WWII low as far as the Trade defecit, but its all a cycle and we will start to come back the other way soon. When we do, GM and other US manufacturers will begin to reclaim some ground. As a small example of what could happen: The Chinese have SERIOUSLY undervalued their Yaun for the purpose of staying competetive vs. the US dollar. Right now two things are beginning to happen, the Dollar is dropping in value, and the Yaun is beginning to be unrestricted, and hopefully will soon lose more restriction and explode. If this happens then from a countries point of view, to buy from China is more expensive, and to buy from the US is cheaper. The trade balance would change, and we would benefit. Other things that might change and help, Tarriffs, Union and Pension plans, Healthcare reform in the US...those are all big factors that could help companies like GM and Ford.

That is on a global economic level, but on the Market level. Right now GM is extremely weighted in the SUV market because they get a high return when they sell an SUV vs. selling a compact car. So as energy costs have risen they have taken a beating from the early 2000 SUV boom, which remember...they were doing great back then. Anyway in time they will completely move their market strategy and hybrids and small cars will take over again. But they need time, real time.

Its a cycle, and they will eventually come back around. So, since we don't really want to buy their cars right now, and we just dont see them as too appealing at the moment, what can we do?

Buy their stock. Its at record lows, I own shares, and bought more as it dropped during the summer. You just dont know what 5 or 10 years might do for this company. Just remember the first thing I said. It is General Motors!


Sorry for the Ramble.
Tim