By on May 12, 2009

Folks, we’re well into headless chicken territory here, as GM slides towards an end-of-the-month bankruptcy filing, pretending that it has clue one what to do next. Automotive News [sub] reports the latest End of Days delusion. GM’s circulating a “plan” amongst its legislative sponsors announcing its intention to sell 17,335 Chinese made somethingorothers in the US by 2011, and triple that number (51,546) by 2014. “The gains would come,” the document says, “as GM’s total US sales surge 50 percent in the next five years.” From current levels? Bullshit. Also, batshit. Why would GM seek to antagonize the United Auto Workers with all this import folderol? Surely the GM that I know and love would want to tell the world that the new GM will be an all-American carmaker, building American cars in American factories with American labor for American consumers taking full advantage of American subsidies and American incentives, with a warranty backed by the American government. Even—no, especially—as it’s not true.

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28 Comments on “Bailout Watch 528: GM to Sell Chinese Vehicles in the U.S....”


  • avatar
    Stingray

    Been reading this site for at least 3 years now.

    Read about your arguments for an early GM C11. I objected every single article about it saying the government should help.

    Seeing what’s going on, I regret non supporting the C11 option before.

    Folks, we’re well and deep into headless chicken territory here

    This summarizes pretty well their current situation. The bold text is mine.

    I only hope this doesn’t end in a C7. Or better yet, the way things are now, it would be better they close.

  • avatar
    jpcavanaugh

    Remember that 6 months ago, these same people were trying to engineer a merger with Chrysler. GM has no plan. Well, I guess they do – GM’s only plan is to react. It is the only thing they can do. In their DNA. And if a regular reaction does not work, then add panic.

    One more thing. I love the ability to take a “plan” that is complete guess with no factual basis and make it look precise. How many Chinese built cars? 17335. I say reach for the sky and sell 17,340.

  • avatar
    NickR

    pretending that it has clue one what to do next

    It’s pathetic really. An embarassment to hear what comes out of these people’s mouths. Captains of industry my ass. Go Ch 11 already.

    “How many Chinese built cars? 17335. I say reach for the sky and sell 17,340.”

    That’s hilarious, and oh so true. Perhaps they can give us a state by state breakdown, my model.

  • avatar
    superbadd75

    That dude sure has a lot of attitude for what he’s standing next to.

    I can’t imagine that many people are going to be interested in Chinese Buicks. GM’s really going to make sure C11 doesn’t work, aren’t they? It sure sucks to see a once great American car company get run into the ground by a bunch of morons with no clue.

  • avatar
    Redbarchetta

    GM has plans for selling Chinese cars here, and not very many of them, in 2011 and 2014. BUT doesn’t have a plan to survive the next 60 days, classic.

    Like I said before this company has a better chance if all the upper management were let go(or better yet brought out back and shot) and no one was put in to replace them. They have a better chance at actually doing something anything right without these f*ck ups running the show.

  • avatar

    And how is this company American? Oh yeah, in tax dollars, that’s how. Pathetic.

    John

  • avatar
    Hank

    The guy who creates the Dilbert cartoon should be really hacked off about now. They’re doing live performances of his material in the park, and not only does he not get royalties, he’s not even in the credits!

  • avatar
    Redbarchetta

    I have a serious question here, all you experts please chime in. Exactly how is GM going to come out of bankruptcy and have any success with people like this running the show. I know the government can make their exit from bankruptcy happen and paint roses on the situation using the media but that doesn’t mean they won’t be right back here in a very short time.

    The competition isn’t going to suddenly vanish and people aren’t going to start buying cars like the good old days, not for a while. Even if the government guts the upper management(and they won’t) and puts new people to run the show that doesn’t fix the people below them that don’t know what they are doing. GM’s huge buracracy and screwed up corperate culture isn’t going to vanish in a Ch. 11 filing.

    Any upper management changes that try to change the culture will take YEARS to accompish that. Just look at how long it has taken Mullaly and he still has a long road a head of him. Plus Ford as a history of luck on it’s side. Does anyone seriously think they have years left to fix their inner problems, even with the goverment paying the bills.

    We already know their product planning is directionless, too many hail mary’s not enough bread and butter. Their hopes for the market recovering are very wishful. They look to be hoping for over production to come back to the norm. Stack them high and sell them cheap doesn’t look to be out of their heads. They keep trying to cut their way to profit.

    So exactly how is GM going to survive it’s poisonous culture over next 2 years?

  • avatar
    heeeheee

    I have been reading this site daily, sometimes more than once a day, for years…

    I have a good friend that is the Finance Manager for a local, very big statewide, GM dealer. He is clueless to the world unfolding – or acts like it – and every time I see him, he insists that business is picking up and people are frenzy-ing over the new cars. I am not sure if he is trying to convince me or himself…

    I have said from the start, that it would be a cold day in hell before I would consider a new GM car, just because of all this drama surrounding their failed business model. Imagine dropping $40K on a car and it be faulty or have a loose screw dropped somewhere the consumer cannot get to it. My Daddy was a GM man, always will be. Not me, I don’t have any in my stable today.

    Now I read that GM is going to export the labor and probably materials sourcing, and expect us lemmings to purchase their cars even yet. No way, not me.

    And the used world is where I go now. There is no way I would buy any new car, in the current economic times, I would get a used one, at least the warranty items (where remanufactured parts are the norm) are ironed out.

    Its a sad day for American made…. Truly.

  • avatar
    Pch101

    Exactly how is GM going to come out of bankruptcy and have any success with people like this running the show.

    It’s not (or so I hope.) https://www.thetruthaboutcars.com/wild-ass-rumor-of-the-day-nissan-to-buy-gm/

    This sounds like a plausible objective. I would assume that a sale is the goal of the presidential task force, and that Henderson and the current senior management are all just place holders until a new operator takes over. The current management can plan all they want; they won’t be around to do any of it, and a new owner would be making its own choices.

  • avatar
    John Horner

    Food for thought in the midst of all the madness:

    http://www.storyofstuff.com/

  • avatar
    jrlombard

    “Food for thought in the midst of all the madness: http://www.storyofstuff.com/“

    Wow, that was quite the piece of sensationalized propaganda. No doubt some of the facts were true, but the delivery was sickeningly patronizing.

  • avatar
    "scarey"

    It’s one thing to buy a captive import. It is quite another to buy anything from the folks who took YOUR tax money, closed American factories, and try to pass off Chinese cars as American. I’d rather deal with a Japanese or Korean automaker who builds some cars here. More evidence that GM knows neither manufacturing nor marketing anymore.
    And Redbarchetta- I read a Wall Street Journal article from October 1969 about a Chinese refrigerator factory where the government was dissatisfied with the quality of the products. One day, the employees were led outside, where they watched the department heads and their number twos (12 men and 6 women) get shot in the head. Now that’s quality control. Why didn’t we do that with the bankers instead of giving them trillion-dollar bailouts ?

  • avatar
    crackers

    Could this be a crude and cynical attempt to stir up patriotic feelings in the Government and among the UAW? Perhaps they are trying to get the Government to back off by tossing this out as a worst case plan to profitability.

  • avatar
    wytshus

    Wow, that was quite the piece of sensationalized propaganda. No doubt some of the facts were true, but the delivery was sickeningly patronizing.

    Also ironic, seeing as how that video couldn’t be made without the products produced by that system…

  • avatar
    jkross22

    Wow, that was quite the piece of sensationalized propaganda. No doubt some of the facts were true, but the delivery was sickeningly patronizing.

    Also ironic, seeing as how that video couldn’t be made without the products produced by that system…

    “Gov’t is here to take care of us.”

    Well, at least the video made it clear where their priorities are.

  • avatar
    Robert Schwartz

    Redbarchetta: “Exactly how is GM going to come out of bankruptcy and have any success with people like this running the show.”

    C11 does not make management smarter. I say wait for the GoB sale.

  • avatar
    wsn

    Hank :
    May 12th, 2009 at 9:15 am

    The guy who creates the Dilbert cartoon should be really hacked off about now. They’re doing live performances of his material in the park, and not only does he not get royalties, he’s not even in the credits!

    ——————————————–

    LOL. I guess that’s because of GM adopting the Chinese way of doing business.

  • avatar

    Hank :

    The guy who creates the Dilbert cartoon should be really hacked off about now. They’re doing live performances of his material in the park, and not only does he not get royalties, he’s not even in the credits!

    On the contrary, Scott Adams freely admits that most of the story lines for Dilbert come from emails he gets from people inside such corporations, incredulous of what’s going on around them. It looks like he’ll have years of material from insiders stored up after the Bank and Automotive fiascos.

  • avatar
    Robstar

    Just don’t forget — Headless chickens can live 18 months

  • avatar
    adonasetb

    why so much joy seeing a major U S industry going belly-up? I don’t get it – i see nothing good in the lose of jobs – stockholders losing investments – sorry but none of that strikes a happy cord for me

  • avatar
    Hippo

    How many are already driving GM’s with Chinese power trains?

  • avatar
    "scarey"

    adonasetb :
    May 12th, 2009 at 1:24 pm

    “why so much joy seeing a major U S industry going belly-up? I don’t get it – i see nothing good in the lose of jobs – stockholders losing investments – sorry but none of that strikes a happy cord for me”…
    Why ? The MARKET has spoken. I will miss GM and Chrysler. They make some fine cars. But apparently you must piss away hundreds of billions of dollars in order to produce 4 or 5 good car models, then stick the taxpayers for the bill. Inept companies, banks, and governments should disappear and be replaced. It’s nature’s way.

  • avatar
    Robert Schwartz

    Robstar: “Just don’t forget — Headless chickens can live 18 months”

    But GM has been doing this for years.

  • avatar
    agenthex

    Also ironic, seeing as how that video couldn’t be made without the products produced by that system…

    “Gov’t is here to take care of us.”

    Well, at least the video made it clear where their priorities are.

    I’d like to point out that the priority of the folks who believe differently seem to be littering their failed ideology elsewhere after losing any and all debates on the issues when confronted.

    For example, even if these numbers turn out to be true, it’s a tiny portion of the overall sales. But I guess being bad at numbers is no surprise when competence has shown to be generally lacking.

  • avatar
    wsn

    # adonasetb :
    May 12th, 2009 at 1:24 pm

    why so much joy seeing a major U S industry going belly-up? I don’t get it – i see nothing good in the lose of jobs – stockholders losing investments – sorry but none of that strikes a happy cord for me

    ——————————————-

    Some jobs deserve to be lost.

    The only jobs worth saving are ones that are earned instead of given as welfare. But they don’t need to be saved in the first place.

  • avatar
    wsn

    agenthex :
    May 12th, 2009 at 5:51 pm

    For example, even if these numbers turn out to be true, it’s a tiny portion of the overall sales. But I guess being bad at numbers is no surprise when competence has shown to be generally lacking.

    ——————————————–

    GM lost only $6B in the first quarter and yet burned through $10B in cash. Even I cannot believe Obama and Co. are that bad at numbers. But they are.

    (I know, I know, the $4B difference is unsold inventories. But trust me that’s only creative accounting and will officially become loss very soon.)

  • avatar
    ohsnapback

    That’s odd. That model in the ad doesn’t look Asian.

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