Moneybags GM to Buy Cobasys
That RenCen money tree must be producing a bumper crop this spring. The custody battle over Cobasys between parents Chevron and Energy Conservation Devices (the loser gets custody) has reached the point where GM feels obliged to intercede (i.e. throw money at it). Cobasys makes the batteries for GM's mild hybrids. No other batteries will work in the vehicles, at least until they're redesigned in (all together now) 2010. Automotive News reports "three sources" told them GM is preparing to buy the floundering battery company. The irony: GM helped found Cobasys, then sold its share to Texaco (which later merged with Chevron). Just as spin-offs Delphi and American Axle continue to sap GM's waning resources, Cobasys now returns to haunt them. No one's saying what this acquisition will cost The General, but not to worry… they have plenty of money to get them to the end of the year.
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Subaru also now makes Camrys for Toyota at their previously underused Indiana plant (the plant was built as a 50/50 joint venture plant with Isuzu (another GM disaster area, come to think of it), which imploded and sold it's share to Subaru for a buck). GM managed to not screw up Subaru much, amazingly. The main problem was that they didn't do a damned thing with it when it was in their orbit, other than the Saabaru. As for Daewoo, that actually is working out for GM (amazingly, considering how much of a low-mileage penalty box bag of dog turds their products are). Basically, they build cheap cars for poor people. This is a viable business model (see the Tata Nano for another example), provided you can keep costs low to match.
How about those Suzuki Swifts? Remember the Geo Metro? Remember Geo?
Y'all forgot GMAC as one of the spinoffs that got GM's midas touch.
Daewoos are cheap and pretty basic, and the 2 litre GM Holden Australia engine is well out of date and has those crummy now obsolete cam belts that anyone with an ounce of automotive intelligence is leaving behind when engineering new engines. But if you are at least aware of the fact that their stuff is basic enough, and willing to have a "modern day Model A" so to speak, then there is something to be said for the cars. Or perhaps we just got very lucky. As mentioned elsewhere, we did buy a "new" (used - only because Daewoo USA had gone bust/the car was sold as "used" because it was not a franchised dealer) 2002 Daewoo Nubira for nearly 1/2 of MSRP, and it worked out fairly well. Interestingly enough, GMDaewoo seems to be about the only thing other than SAIC-GM of China (50% owned by GM) that makes any money worldwide, in nations with any growth prospects. So it would be highly ironic if GMDaewoo is the only thing left if GM goes Tango Uniform/chapter 7. I think GM-Holden (a wholly owned subsidiary of GM USA) holds 40% of GMDaewoo, Suzuki holds a little bit (even though GM has virtually sold out of Suzuki). GM has the anti-midas touch. Nearly everything GM has touched in the past 35 years has turned into a turd. Isuzu. Suzuki (which managed to stop the full transmorgafication into turdiness by getting out of GM's orbit "jut in time"). Saab. The FIAT deal. Subaru (see Suzuki). Melding Saturn back into the mother company (mistake).