Obama: General Motors Will "Rise Again and Move Toward Profitability"

Discussion in 'The Coffee Shop ~ Chit Chat' started by ChevyFan, Jun 2, 2009.

  1. ChevyFan

    ChevyFan The Sheriff Staff Member 5+ Years 5000 Posts

    http://www.edmunds.com/insideline/do/News/articleId=149388

    WASHINGTON — President Obama went before the American taxpayers on Monday to explain the government's unprecedented involvement in General Motors' financial affairs, saying that the automaker has "produced a viable, achievable plan that will allow this iconic company to rise again and move toward profitability."

    As a result, the federal government has agreed to funnel a $30 billion investment into GM, entitling the taxpayers to ownership of about 60 percent of the automaker, he said. "This may give some Americans pause," Obama admitted.

    "We are reluctant shareholders," he added. "What I have no interest in doing is running GM. They, not the government, will call the shots. The federal government will refrain from exercising its rights — where to open a new plant or what kind of car to make. The new GM will make that decision."

    The president said that an unprecedented financial crisis "forced us" to get involved with General Motors and Chrysler. He predicted that the GM bankruptcy proceeding will "take more time for GM than it did for Chrysler," explaining that "GM is bigger and more complex."

    "GM will emerge as a stronger and more competitive company," Obama said. "If you are considering buying a GM car, your warranties will be safe. This will mark the beginning of a new GM. Building a leaner GM will come at a cost. It will take a painful toll on many Americans.

    "I know you've seen more than your fair share of hard times. I will not pretend the hard times are over. More jobs will be lost, more plants will close, more dealerships will shut their doors. You are making a sacrifice for the next generation. Your children and all of our children will grow up in an America that still makes things, that still builds cars."

    He ended his noontime speech by saying, "I am absolutely confident a new GM will emerge."
     
  2. Crakums_GT

    Crakums_GT Epic Member 5+ Years 500 Posts

    That's good to hear, but what happened to what I was hearing about the suggestions to companies on seizing the "big car" builds and building more environment friendly cars? I really do hope that GM remains the decision maker for what they build.

    -Greg
     
  3. 5point3

    5point3 Rockstar 100 Posts

    I am glad to see they will survive. My main issue with GM is the pricing on their vehicles. The Camaro for example, yes I understand it is highly anticipated and all that other crap but you are a stuggling company and you mark up the sticker price to try and take advantage of the situation. They have a $5000 mark up on a V6 Camaro for god sakes. If they made their vehicles more affordable they wouldnt have this problem. The Tahoe and Suburban are insanely priced as well, I love the style and comfort of them but the only way Ill own one is if I a used one thats about 3-4 years old. They offer employee pricing once in a great while, if they just made those the sticker price in the first place, they would sell more units. Lets be honest they have to do something to get people to buy American.
     
  4. andz74

    andz74 Member

    all the 1/2 and 3/4 ton are at a isane price from 27 to 34k and i need a new one
     
  5. TRPLXL2

    TRPLXL2 Epic Member 5+ Years 1000 Posts Platinum Contributor

    I was just at the Chevy dealer yesterday and I could not believe the price on the Camaro either, they had a basically stripped down model for $29,000! That's ridiculous I remember looking at a 1999 Camaro Z-28 convertible fully loaded for $29,000 and that was before the rebates and discounts. They did have $7,000 rebates on the NNBS Silverado's for 2009, plus they were adding $1,000 customer loyalty. That was a better deal then I got back in 2005 actually, as far as GM getting people to see them differently I don't see that happening. 99.9% of people I here complaining about GM cars and trucks, have a beef with the DEALERSHIP not the company in general. I think the dealership is a lot to blame for the bad rap on GM vehicles, sometimes you get the vehicle back in worse shape than when you take it in for work. The harassment you get when you try to get warranty work done, especially when you pay a couple thousand extra for the extended warranty. :neutral:
     
  6. ChevyFan

    ChevyFan The Sheriff Staff Member 5+ Years 5000 Posts

    Every car company is having problems, not just GM, Toyota will post a billion $$ quarterly loss soon. Let's not forget that the #1 selling automobile in the US for 2008 was the Chevy Silverado/GMC Sierra. They have to be able to make a margin on these and with all the pension debt bringing the company down, high fuel prices slowing sales, etc .... it's been a rough road.
     
  7. Springthing

    Springthing Epic Member 5+ Years 1000 Posts

    Whenever I think about car pricing it gets me thinking about a car I used to own and how it was born.

    The Plymouth RoadRunner was born from pure "let's give them what they want". They took a cheap car, stuffed a huge motor in it, put no fancy thrills into it and sold it for cheap. Nowadays, it seems if you want to just buy a car for cheap.... well.... you can't! There are POS ones you can buy but they aren't anywhere close to being 'nice' or anything special in the least.

    Once again.. we get back to one of my first posts ever - Cost vs Worth.

    But it will all certainly be interesting to see what the future holds for all the auto makers.
     

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