DEC 03

In a very real way, GM is putting it's future on the Volt. They have invested a billion dollars in the project and are hoping that the car will help them regain the technological advantage over Japanese auto companies.

But it's bigger than that. In a very real example of how much GM needs the Volt (and why) CEO Rick Wagoner is driving one to Capitol Hill tomorrow morning. He'll park it out front of Congress, walk in, and ask them for an $18 B loan.

The loan request comes on the heels of absolute dismal numbers for GM and the auto industry in general. GM sales are down 41% compared to last year, not as bad as Chrysler's 47$ (or Nissan's 42%.) No one is immune. Honda has faired the best of the major manufacturers dropping 32%.

GM is going all-in on the Volt. They want to show congress that they are not a victim of their own idiocy. That they're a victim of foreign car companies who don't have to pay union wages, and of pension plans that are great for workers, but are bankrupting one of America's largest and most important industries.

I'm not sure if I buy it. After all, GM did miss the hybrid boat completely, and their treatment of electric vehicle technology was deplorable before the last five years. But if they want to survive, they have to convince the world that they are moving forward, not a telegraph operator trying to stay in business in 1992.

Without congress, they will default. There's no question of that. In the next weeks, GM will discover whether or not they will get to celebrate their 101st birthday. And we'll all find out whether or not we'll get to drive a Chevy Volt.

Comments (11)

Subscribe to this comment's feed

Reverse 360
written by Red HHR, December 03, 2008

I want to see a smoky doughnut! OK, with front wheel drive that may not be possible. Probably would be bad form too when looking for a handout. Remember when they introduced the Boeing 707 Tex did a barrel roll with the aircraft in front of everybody? Spectacular.

http://www.youtube.com/watch?v=Ra_khhzuFlE

I say give the car to some Red Bull drifter…
Watch the fun. Better than some corporate bonfire.
I say a reverse 360 into a staged parking place would work nicely!

Red HHR (tongue planted firmly in cheek)

• 
• +0
• 
• 

...
written by EV, December 03, 2008

I'd also add the CAFE disproportionately penalizes anyone who sells larger sedans, vans and trucks. All three are included under the same CAFE group. The Japanese don't sell anywhere near the number of pickups that the Big 3 does and so it lowers their fuel average and increases the Federal penalty taxes on all their vehicles.

Whenever we go camping, we either take SUVs or Vans to carry our gear. You can't fit four people's gear, tents, food and cooking supplies for a weekend in a car trunk. Even with that, the SUVs and Vans always have at least four people in them.

• 
• +0
• 
• 

no welfare
written by IamIan, December 03, 2008

one of the 3 is going under anyway... any money loaned to them will be lost.

even if we give GM all the $ Billions they are asking for... they are going to fire 10,000 of their employees ... and that only gives them enough money to get through 2009...

In 2010 they will be out of money again... and by 2011 or 2012 they will be begging for more welfare.

Let them fall... it is the result of their own choices... a smaller auto market means someone has to go... survival of the fittest ... and right now of the 3 that looks like Ford.

• 
• +0
• 
• 

GM to sell out
written by Aneshka Svobodina, December 03, 2008

Quite picturesque explanation of the current situation at GM. I do agree on the whole, but the misleading facts about foreign auto makers are too wrong in my opinion.

Strict regulations, strong unions and pension plans do exist in Europe as well as in Japan. It did not harm foreign car companies to win more customers in the US and elsewhere.

The problems of GM are home made. They will have to reinvent their business or sell it to the more competitive thinkers.

• 
• +0
• 
• 

I hope GM fails
written by Mike, December 04, 2008

The quality of the US made automobiles is very poor by world standards and the export market for them is quite limited as result. Unless US auto manufacturers can produce high quality fuel efficient cars then the writing is on the wall.

I doubt that a GM electric vehicle will succeed long term. I think it is likely that China will end up owning the EV market eventually. The Chinese can produce high quality manufactured items, but they are prevented from doing so because they get screwed down to supply at lowest possible cost.

The world has seen enough crap from the US. It is time for the US auto industry to fold.

• 
• +0
• 
• 

GM is quality
written by Bill Cosworth, December 04, 2008

What a total ass.

I cant stand cheap toyota cars

Toyota PR people go all over the web and place very bad articles against GM.

Its sick they do this.
I hope GM makes it and gets the money.

The volt will be a success.


Also GM cars now are more fuel efficient and better quality than Japanese cars.

• 
• +0
• 
• 

...
written by sushi, December 04, 2008

Another corporate bailout. Yay! my tax money once will help secure rich CEO's pension.

• 
• +0
• 
• 

Automakers are dumb, but are they dumber
written by Joel, December 04, 2008

Everyone's down on the automakers right now because they showed up in DC in private jets without a clue to how to reform their industry. Yeah that's dumb. But how about the heads of the financial industry? They're asking for FAR MORE than 34 billion: they've already gotten 700. No one is calling them stupid, yet they allowed these ridiculous instruments like "credit default swaps" to spread rot throughout the entire world economy.

• 
• +0
• 
• 

Watch the Movie
written by Taylor, December 05, 2008

Watch "Who Killed The Electric Car" THEN try and argue why they deserve a bailout.

They made their bed now they should be forced to lay in it wether it hurts america as bad as they say or not. GM deserves to go belly up. They earned it with the destruction of the EV1 and the hyper marketing of the Hummer.

• 
• +0
• 
• 

Can someone please explain
written by gianni, December 05, 2008

Why Ford and GM (Opel, Vauxhall, Lotus, Saab ... ), who produce really, really good cars overseas (peppy, stylist, economical ... crazy economical) as anyone who's driven a Ka, or a Focus in Europe can attest CAN'T produce the damn things here. Please explain

• 
• +0
• 
• 

...
written by Daniel D Martin, January 11, 2011

OH Well
Good turn around for GM and our tax money
Not only the VOLT is a great success but the whole companny situation changed over 2010 ,probably going back to be the largest in the World!

• 
• +0
• 
• 

Name

Email

Website

Title

Comment

smaller | bigger

Subscribe via email (registered users only)

Write the displayed characters

Add Comment