Wild Ass Rumor of the Day: Big GM Announcement Monday
These are turbulent times. Over the course of the last week, we’ve watched GM PR (a.k.a. “unnamed sources”) pimp a nonsensical merger between The General and Chrysler. Then, at the eleventh hour, the “deal” was retracted without comment (thanks to the U.S. Treasury Department’s refusal to bankroll the pre-bailout orgy). As regular readers will know, Friday afternoon is the witching hour for GM’s bad news, so that the markets can chill-out before dumping yet more GM stock and downgrading GM’s credit [even further] into irrelevance. So now we have an info limbo. Will the deal go ahead anyway? If not, when will Chrysler file the resulting, inevitable Chapter 7 liquidation? Into this void some tipsters step. Deep Throat tells us GM’s putting its research and development facilities on ice– and not just to save a few bob. Nope. It appears that The General is about to kill– as in starve to death HUMMER-style– Saab and GMC. Oh, and commercial trucks. That would leave Chevrolet, Cadillac, Pontiac, Saturn and Buick. (I know: Buick?). Anyway, something’s going down on Monday. The leakage should start tomorrow.
How they can continue to gush red ink for two decades with Saab and Saturn is beyond me. GM has never made a dime from either one. Remakes Saab as Opel Sweden and Saturn as Opel US and still can't sell any cars. Saab has never cracked 140,000 sales worldwide with GM.Saturn sales keep falling even with all new product. GM just rebuilt Saturn's entire line with two cars [Astra & Sky] that lose money every time one is sold.A double loser brand.[Wasn't the 10,000 per unit loss on the Sky & Solstice reported here on TTAC?] The Astra was another "stopgap" till a NA version could be built here. That ain't gonna happen obviously.No money for it. Another of those "We have to have something to offer in the segment till the "real" small car arrives " things Even if they sell it at who knows how much of a loss. With the Astra bombing as it has at sales less than half the projected 40-50,000 units [ION did over 100,000 every year For all the slagging it's gotten it sold better than the VUE], why would GM continue this charade. Maybe the big announcement will be they've finally gotten the juevos to cut the dead weight. [And start the Christmas "red tag sale" early......]
@ DweezilSFV : I think its time to start calling it a Christmas "toe tag sale".