Fuel efficient technologies, vehicles losing out to financial crisis at GM
Development of the Chevrolet Volt may be continuing full-speed for now at GM but that program is the exception rather than the rule at the General. Everywhere else in the company, programs and introductions have been delayed. The combination of excess inventories of existing vehicles resulting from slow sales and cash flow issues have caused vehicles such as the Saturn Vue and Two-Mode hybrid and the plug-in version to be delayed. If GM were to start building the new strong hybrid Vue they would have to pay suppliers for the parts, something they are trying to avoid right now.
Similarly, the plug-in requires engineering hours that would have to be paid for. It's ironic that politicians want to force the Detroit automakers to build greener vehicles but, until the Big Three get a cash infusion, it can't happen. Similarly, even more efficient versions of conventional drivetrains are being pushed back. GM has two new engines coming that were supposed to be shown to media this coming week. In light of the current situation that briefing has been canceled. It's not clear if the introduction of the engines themselves has been delayed, but odds are that that will be the case.
Reader Comments (Page 1 of 1)
jharlan 11:42AM (12/14/2008)
If what you are saying is true, GM is dead, but just hasn't fell over yet, killed by the overburden of shorsighted management and the extreme weight of the greedy UAW, who think they are entitled to higher wages and more elaborate benefits than the rest of us could have ever hoped for. And they wan't my tax money to resubsidize them?
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Mike!!ekiM 8:47PM (12/15/2008)
First UAW wages: Comparing UAW wages from the Detroit area to lower cost of living area such as Mississippi is going to give you what looks like UAW wage gouging. However, Mississippi is one of the Poorest States in the Nation. Why don't we bring up Mississippi wages!
Then, there's this explanation from the UAW's site:
In addition to regular hourly pay, the labor cost figures cited by the companies include other expenses associated with having a person on payroll. This includes >> overtime, shift premiums and the costs of negotiated benefits such as holidays, vacations, health care, pensions and education and training.
noz 11:40PM (12/14/2008)
UAW? Give it a break already blaming the UAW.
GM fked up in choosing what to make based on greed....PERIOD. They chose short term gains over long term strategy. THE END.
harlanx6 11:49PM (12/14/2008)
The point is regardless of whoever caused GM's downfall, will allowing them to fail, which they deserve, cause a national economic breakdown with millions of innocent people losing their jobs and the subsequent ripple effect throughout the economy. It Might!
noz 2:18AM (12/15/2008)
I don't think so. It's a scare tactic. Sure...people will get affected....but for the most part it's fear mongering.
The survival of people isn't the issue...the survival of this auto empire that's outdated, wasteful, and bloated is what they are trying to save because it's been a cash cow for a few. Care for the people? Let's get real...since when has that ever been an issue.
jharlan 10:09PM (12/15/2008)
You are right, it is a scare tactic, but we have good reason to be scared. This economy really is precarious because as incomes fall it leaves all government without necessary funding, and the government has become too large a part of the economy. It is always the unintended consequences that get you.
GoodCheer 12:11PM (12/14/2008)
An ideal for your consideration:
If we want to
a) support a domestic auto industry
b) reduce our oil consumption
How about
A $0.02/gal tax (a dirty word I know) on gas sales, with the proceeds going directly to any domestic vehicle manufacturing facility, proportional to the number of vehicles that come out the door (including Tesla, Factory 5, Aptera, Beck, EVERYBODY).
The total revenue would have been $4.4 billion in 2007 (from EIA data). About 10.8 million vehicles are built each year in the US (en.wikipedia.org/wiki/Automotive_industry), so that would be in effect a subsidy of ~$405 for each vehicle built in the US.
This would increase the ability of the auto makers to make a profit building the small vehicles that so many people on this site want, it would increase the price of gas, which would encourage the market for efficient vehicles, and it would encourage investment in American manufacturing facilities for foreign (and Detroit) OEMs.
Your thoughts?
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Mike!!ekiM 8:46PM (12/15/2008)
I like your idea.
Also,
An IRAQ WAR Gas Tax is a good idea.
A Global Warming Oil Penalty Tax for the Oil Industry funding Bogus Science about Global warming would be welcome.
A Cheap Junk from China transport tax on shipping diesel.
A parity with foreign government auto import taxes as well. Doesn't China have an import duty of 30% on US auto imports? Match it.
noz 11:42PM (12/14/2008)
I have even a better idea.....the people who want war should NOT ONLY go to war, but they should also pay for their guns, ammo, costs, gear, fuel, etc...and then go to war.
And then they should stay there indefinitely until they are done.
OH...and they can also pay for my share of war taxes since I couldn't give a rat's a$$ about the military.
roz 11:54PM (12/15/2008)
Why should we use gas taxes to subsidize the production of cars?
GoodCheer 10:04AM (12/16/2008)
roz... yeah, it sounds funny doesn't it. If you read though my post carefully, you'll see that I gave reasons:
"This would increase the ability of the auto makers to make a profit building the small vehicles that so many people on this site want, it would increase the price of gas, which would encourage the market for efficient vehicles, and it would encourage investment in American manufacturing facilities for foreign (and Detroit) OEMs."
What do you think of those reasons?
1985 Gripen 4:30PM (12/14/2008)
A few years back the reason GM gave for not investing in hybrid technologies is that they were going to skip right over that stage and invest all their resources in hydrogen fuel cells.
When GM stopped leasing the EV-1 and started the HUMMER brand (1998) we were promised that the hydrogen highway is only 15 years away. So I'm guessing that GM fuel cell cars will begin hitting dealer lots in 2013, right?
Hey GM, where's my hydrogen fuel cell car? GREENWASH.
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TX CHL Instructor 4:48PM (12/14/2008)
I'll drop my opposition to a GM bailout as soon as all of the members of the board and all of the senior management invest a minimum of 80% of their net worth in GM common stock.
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John Morgan 9:14AM (12/15/2008)
Well GM was hurt by the finacal crisis just like all other automotive compaines. They should have kept the technology of the GM EV-1 , and the chevy s10 EV. GM needs to be saved yes they have done green washing and they have showed ignorence and underestimation to the Japanese hybrids and small car. But iff you want a American bulit Chevy Volt , Cruze , or Vue hybrid . Then lets save GM so the prius can have some competion.
Volts Velicoty Victory
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Zebracat 8:23PM (12/16/2008)
The Big 3 get to make all the mistakes and you the tax payer get the honor of paying for it! Like the terrorists of banking that demanded your tax dollars or they would collapse the economy, so now the Big 3 hold us hostage. Looking at the collapsing economy, despite paying the ransom to banking, I guess we all learn the hard lesson "you can't negotiate with terrorists!" I like GoodChear's idea about the added fuel tax to help bail out anybody actually building cars in the USA. Just don't expect much from the quality or to see a dime in the way of a lower price for you patriotism. Mike!!ekiM's idea about matching China's import tariff strikes me as a good safety net for our domestic industry just like it is for theirs, so why not? What's good for the pressed duck is good for the stuffed turkey. I propose one other measure to aid the Big 3 by helping them sell off their dead inventory. The government can give the Big 3 a tax credit or stipend to eveyone of their not selling gas vehicles that they factory recall and convert to EV, Natural gas, or a high milage euro-diesel. Saves the planet and helps with their bottom line!
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PPLHRT1991 5:49PM (12/22/2008)
How honoring it is to see that the lives and limbs given to insure that the rights and freedoms of all americans are defended are appreciated. Noz, I understand that you dont give a rat's @$$ about the military, but did you ever stop to think about what the military has done for you, even though you are mouthy, disrespectful, and social obscenities flow from your orphaces, just as the waste does down the leg of the cowardance when faced with standing for a more honorable and noble cause than himself. I will remove myself from the proverbial soap box and leave you with this one thought. Those that have fought or are fighting the war, and or wars of this great nation have done so to insure that even the most simple minded, would have the right to think and speak what they may. While your views offend me, it does bring honor to know that the deaths of my friends, and wounds sustained in the face of the enemy have been worth while. For even a self centered individual deserves the right to be an individual. God Bless you Noz, and may God Bless this Great Nation for all time.
USARMY former combatant
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MotorTrendYesUSA 9:56PM (12/20/2008)
Worth repeating: News Flash: if it weren't for unions our middle class would be far smaller than it is and we would not be the economic power we've been to date...
...A great majority of the benefits you bloated, loud mouth, anti-union ignoramus have (like weekends or 2 days off a week, 40-hour work weeks, paid vacation, benefits) would not have been possible without the pioneering efforts of unions. …Our constitution supports unions. They have been over-bearing and they're not perfect but we do need them.
….You think the man will be giving you holiday pay or OT pay if you did not have a union effort in the 1930s going forward to pass laws mandating OT pay and other benefits you never thought about did you???
;;;; One other thing, every factory in Japan and Korea is unionized, same for Germany and most of old Europe: any answer to that you miserable anti union parrots.
…..We cannot be truly competitive with the other companies unless we have universal healthcare and government subsidized benefits. Therefore the government is to blame as well for the industry's woes too.
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