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Discussion Starter #1 (Edited)
I read in the paper today that our president is going to guarantee the warranty's on GM and Chrysler products purchased during the government guided restructuring if either company is forced into bankruptcy.

That's fine and dandy but the crappy part is they will only guarantee warranty's on cars purchased on or after 3/30/09. What the hell is that. I do my part to try and help save GM by buying their product, the government tells me if GM is forced into bankruptcy I wont get my warranty because I bought in January and the guy walking into the dealer next week will.

This is gonna suck if GM goes under.
 

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What you say makes sense, but seriously if GM does go under the government will have a lot more to worry about than warranties.

Know the number of people that rely on the auto industry? It's huge! and would create huge unemployment issues, so for some reason the last thing the government will want to do is allow GM to go under.

My 0.02c worth
 

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I theorize, that if there were no domestic car market anymore, the imports will become much more expensive; they can only make so many cars in a year, and supply and demand would drive up prices.
 

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You should read the article about this and what was mentioned in it. Towards the end it states that the government will direct GM and Chrysler into a bankruptcy proceeding under their guidance only to clear all the debts that GM and Chrysler have and for them to completely reorganize and restructure into a leaner company for both. They don't want GM or Chrysler to fail and close up completely.
 

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I agree with Glow regarding the Obama administration not wanting GM to go down. Some think the best thing that can happen for GM is to let it go into a controlled bankruptcy to clear some old debt and emerge a stronger company than otherwise possible. I'd rather see it negotiate it's way out on it's own though. As to backing the warranty, that is just being done to make new buyers feel safer about buying a new car from GM. The chance of GM being scrapped is almost nil in my opinion so I feel pretty safe with my existing warranty. Now my 401k, that's another thing....
 

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Discussion Starter #6
In a different article I read, the advisers that will be monitoring the restructuring are strongly suggesting that GM scrap all brands except Chevy and Cadillac as soon as possible. Imagine what this will do to the dealer network. If your a Chevy/Cadillac dealer you'll survive, for all the Pontiac, Buick, GMC and Saturn dealers...Buh Bye. Look at all the money GM has dumped into the new LaCross. New Platform, new engine, new all wheel drive. If they are forced to ditch these brands the LaCross may get a new fascia with a Bow Tie on the front and the words MALIBU across the back.
 

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The government guarantee is to encourage people to continue to buy GM products. If the company stays in business, the warantees of existing customers will be honored by the company. If nobody buys any more cars then the company is toast. The point is to reassure new buyers, which will in turn have an impact on existing buyers who simply need the company to stay in business. The point is not for the government to step in and pay for all warranty repairs, but to instill confidence in new buyers.
 

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Would it really matter if the Buick Enclave became the Chevy Enclave? And if they dropped the Acadia version of the same car? There is a lot to be said for eliminating the redundant overlapping products. And if you're tearing up the company who cares about the traditional branding schemes. They should figure out the best products that sell the best and keep those, then cut the rest. We're talking about survival here.

Unfortunately the dealers are going to have a problem because there are too many of them to support the number of cars being sold now.
 

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There is a lot to be said about removing some of the redundancies. Competing against yourself really isn't as necessary as it used to be, as the import segment of the auto market within America has changed a great deal. Removing of some of the overlapping models would be prudent, as would jetisoning some of the brands all together, but not Buick, and likely not GMC. The reason is money. Believe it or not, GM sells a lot under the Buick name. Buick is HUGE in China, and sales in China are only going to grow. GMC has a niche in truck sales, and is thought of as a quality brand name in trucks. Dumping it would likely alienate a lot of business customers. Chevy would be more likely to be dumped, as it is considered more of the economy line, but that just would never happen. I could see a GM umbrella covering Chevrolet, GMC and Caddilac, Buick, though. Goodbye Saturn, Pontiac, Saab, and possibly Opel. Perhaps a meger of some of those remaining lines could be considered as well, but it would be hard to sell Caddy owners on their new brand being called Buick, or the Buick market being conviced to get a Caddy instead. Perhaps GMC and Chevy could become one line.
 

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It was rumored at one time that Pontiac was the next manufacturer under GM that would get the axe. GM is definitely gonna dump off Saturn and Hummer, and if they can't find buyers for those two then they'll stop making them and close the Saturn plant. Since the Hummer is built on the same production lines as some of the other SUV's GM will just eliminate it from those plants. Now GM's bread and butter has always been Chevrolet, but the ones doing decently would be Buick and Cadillac in other countries, China has a growing demand for Buicks. But the main point would be that GM needs to trim the model lines down to better compete with others, not complete elimination of several brands. GM could do away with GMC since they are the same trucks as a Chevrolet. Since across the board almost every brand has it's own versions of the same models, eliminating some of the models that share platforms would be a help but then you alienate the people who bought a certain model because of what they like. No matter what customers are gonna have to get use to part of GM being eliminated and either look at similar models within GM that would be suitable to their tastes.
Saab was a mistake for GM to buy, that company should've just closed it's doors when ti was hunting for help, they just don't have the sales volume out there. Opel pretty much is only found in European countries for the most part and they seem to be doing OK.
 

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It was rumored at one time that Pontiac was the next manufacturer under GM that would get the axe. GM is definitely gonna dump off Saturn and Hummer, and if they can't find buyers for those two then they'll stop making them and close the Saturn plant. Since the Hummer is built on the same production lines as some of the other SUV's GM will just eliminate it from those plants. Now GM's bread and butter has always been Chevrolet, but the ones doing decently would be Buick and Cadillac in other countries, China has a growing demand for Buicks. But the main point would be that GM needs to trim the model lines down to better compete with others, not complete elimination of several brands. GM could do away with GMC since they are the same trucks as a Chevrolet. Since across the board almost every brand has it's own versions of the same models, eliminating some of the models that share platforms would be a help but then you alienate the people who bought a certain model because of what they like. No matter what customers are gonna have to get use to part of GM being eliminated and either look at similar models within GM that would be suitable to their tastes.
Saab was a mistake for GM to buy, that company should've just closed it's doors when ti was hunting for help, they just don't have the sales volume out there. Opel pretty much is only found in European countries for the most part and they seem to be doing OK.

Well there are some differences with GMC. They make more heavy duty trucks and versions of trucks on the Chevy line. It has a different perception because of this as well.

I hope Opel stays put. Opel as a huge influence of the redesign of the G6/Aura and then the Malibu.

Hummer, Satrun, Saab and likely Pontiac are done though.
 

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Discussion Starter #13
The major reason GMC truck exist now is for dealer support. Almost every Pontiac and Buick dealership is paired with a GMC. This allows dealers who have built a relationship with owners of GM cars other than Chevy to offer trucks to their customers. If the dealer network is cut back to Chevy and Cadillac alone then there wont be a GMC, there is no need. Every product GMC has is available as a Chevy and any trim options that set GMC apart would then be offered on all new Chevy trucks.

I agree with most other people. The overlapping product and competing against yourself needs to end. GM doesnt need 4 or 5 mid sized sedans. All that does is increase marketing, R&D and Production costs. Cut that back to 1 car but instead or 2 or 3 trim packages give it 4. An LS for the lower budget, LT middle budget, LTZ for the sportier version and a top of the line luxury version. Think of a Malibu LTZ mixed with a CTS and the new LaCross. One Plant, one platform one car with a $15,000-$20,000 spread between LS and Luxury. Do this for every class of car and this alone would save the company billions.
 
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