AND 
Geithner Says GM Will be Part of Country’s Future, and 2010 GMC Terrain Previewed
If at this point any doubts remain, US Treasury Secretory Timothy Geithner went on CBS’ Meet the Press on Sunday and proclaimed “GM is going to be part of this country’s future.”
“We want to see a strong automotive industry emerge from this recession,” he said, also indicating the government needs to assure that GM “can emerge strong enough without having to have government help on an ongoing basis.”
Currently a quick-rinse bankruptcy is not ruled out and CEO Henderson said of the company’s required restructuring “If it can’t be done outside of a bankruptcy process, it will be done within it.”
Some pundits are reporting that all this bankruptcy talk may actually be a high-stakes game of chicken noting Obama to be an avid poker player. The idea is that bondholders and the union will wither to accept concessions in the remaining weeks rather than face the prospect of greater losses in bankruptcy court.
Meanwhile GM presses on with the preview today of a new upcoming vehicle, the 2010 GMC Terrain. The bold radically-styled new truck is based on the same platform as the upcoming Chevy Equinox. Impressively it uses a 2.4 L 4-cylinder gas engine delivering 182 horsepower and achieving a remarkable 30 mpg highway. The sister-car Equinox has already been value-priced at a $23,185. I know, no plug no sale.
66 Responses to “Geithner Says GM Will be Part of Country’s Future, and 2010 GMC Terrain Previewed”
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April 5th, 2009 at 2:09 pm
Nice looking vehicle. I would still buy it even w/o a plug. These are the cars that will pull GM back in the black. Everyone who wants the Volt must realize until a profit can be had from the Volt, GM needs gas/diesel vehicles to not only sell but beat the competition.
So root for the Volt, but also root for gas powered cars, SUVs and trucks from GM. The former can’t be realized without the latter.
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April 5th, 2009 at 2:10 pm
Any word if this will be a hybrid as well?
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April 5th, 2009 at 2:21 pm
Adrian
Totally agree with you. I hope the buyers will look at the U S manufactured autos with an open mind as there is now no reason not to consider them.
It will be a rather long time before E-REV or BEV autos are the highest percentage of sales and until then we need to do our part.
I think the U S auto industry has learned the lesson of quality and do now, and will in the future, build world class vehicles.
If my old Buick dies prior to the Volt being available in my area then I will buy a domestic gas or hybred.
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April 5th, 2009 at 2:27 pm
Meanwhile the Ford/Mercury SUV hybrid gets 41 city, 36 highway and CR recommends it. No GM SUV is recommended and the Vue gets a black dot for reliability. Enough with covering outdated technology with simulated bling.
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April 5th, 2009 at 2:33 pm
The idea of having the US President and Secretary of the Treasury acting as the de facto owners and chief executives of a major auto maker is an idea that is a new one. It is change, but not change I believe in, as to me it seems filled with pitfalls. I hope it works out well.
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April 5th, 2009 at 2:35 pm
This SUV getting 30 mpg is obviously a hybrid, but that isn’t
very impressive. I’d rather have a fuel cell SUV. 68
mpge hydrogen and no gasoline use. Nobody wants
gas guzzling SUVs. They are a necessary evil that
could be addressed by commercialization of the Sequel.
Say nitrogen doped carbon nanotubes and hydrnol
reformation on board and badda bing, the Sequel
becomes production ready.
If GM doesn’t mass produce an electric car soon, it doesn’t
deserve the green car company label. Honda at least has a dedicated factory for fuel cell cars and the will to produce them.
The question isn’t will fuel cell technology replace ICEs, it is
when will fuel cell technology replace ICE technology.
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April 5th, 2009 at 2:44 pm
Michael,
You voice a very real concern that the Asian auto makers will leapfrog us with fuel cells, if we don’t keep pushing.
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April 5th, 2009 at 2:45 pm
#6 Micheal
I do hope you are right about fuel cells being the answer to our auto needs in the future. But as of now I can assure you that the only hydrogen fuel cell Honda that will be sold near me will need to come with a trailer so it can be hauled somewhere that sells hydrogen. So maybe the present tow vehicle should be an E-REV, either gas or diesel.
If and when hydrogen is a viable energy repacement to fossil fuel I will gladly buy such a vehicle!
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April 5th, 2009 at 2:50 pm
Seeing as how Geithner has promised Wall Street an amount almost equal to the enitre 2008 GDP of the United States, $12.8 Trillion in all, he better go on record to state that GM will be part of the Country’s future.
Otherwise, people, voters especially, will start asking questions like “Why everything for the bankers, while the true wealth creators, the middle class are hung out ot dry?”
Be careful, the American people may realize at some point that they’re being looted.
Interesting times we’re living in.
http://www.bloomberg.com/apps/news?pid=20601087&sid=armOzfkwtCA4&refer=home
_-=
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April 5th, 2009 at 2:53 pm
Must we re-hash the fool sells again? It’s a nice dream, but won’t be commercially viable for at least another decade. My old car won’t last that long. We need viable options today! I’ll drive my new Volt in the mean time while I’m waiting for hydrogen technology to mature.
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April 5th, 2009 at 3:05 pm
A shot of the ‘Terrrain’s’ interior…you can see next generation/Volt-ish styling:
http://gm.wieck.com/forms/gm/X10GM_TR008.jpg?download=051150
————————-
I’m going to say that the ‘Terrain’, although eloquently coined a “bold radically-styled new truck ” by Lyle (although I’m guessing that was C&P from a presser somewhere)…is not exactly what GM needs to be bringing to market right now,
Another truck…on this platform? c’mon
I’m guessing this is something that has been clogging up the R&D pipeline for awhile and they figured they were past the point of no return, so they might as well release it.
So on the same Theta platform, we have:
Chevrolet Equinox
GMC Terrain
Saturn Vue
Pontiac Torrent
and the Suzuki XL7
/5 times a charm
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April 5th, 2009 at 3:10 pm
#11, statik
This IS what GM needs–bread and butter vehicles that sell in high numbers so that they can finance all of the costly new technologies such as the Volt and fuel cells.
Also, the Pontiac Torrent is no more and the Suzuki XL7 is riding on the last-gen Theta platform. On the new platform, all you have is the Equinox, the Terrain, and the Caddy SRX. But the SRX will be at a price/content point significantly above the Equinox and Terrain.
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April 5th, 2009 at 3:11 pm
It’s interesting to see how quickly Volt is being re-categorized as a long-term solution. What was once just beyond the horizon is now getting pushed out further for the sake of becoming a competitive platform and no longer part of the recovery effort.
2015 seems to be when expectations are being set for achieving mainstream status.
Question is, what will be sold at high-volume to typical consumers in the meantime?
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April 5th, 2009 at 3:16 pm
Micheal robinson @ 6 says: “This SUV getting 30 mpg is obviously a hybrid,”
——————————————-
No, it’s not a hybrid. It uses GM’s new Direct Injection 2.4 four cylinder engine coupled to a six-speed auto transmission.
Believe it. It will get 30 mpg highway, without any hybrid technology. It beats out Toyota and Honda in hwy mpg AND comes with a much better warranty.
The all new 2010 Chevy Equinox is its sister vehicle as the article above states. I am seriously considering buying one after a tough winter here where my wife and I spent a lot of time UNDER our vehicles putting chains on and off the wheels. Getting too old for that nonsense.
Here’s a link for the details:
http://www.autoblog.com/2008/12/21/detroit-preview-2010-chevrolet-equinox-debuts-with-direct-injec/
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April 5th, 2009 at 3:17 pm
A new big SUV? Wow, I guess GM will never learn their lesson, even with all the crap they have gone through. No one is fooled by quoting a high highway MPG, while the city/combined is still very low MPG. Another fail GM.
Build an Insight replica!
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April 5th, 2009 at 3:24 pm
#12 Matt said:
#11, statik
This IS what GM needs–bread and butter vehicles that sell in high numbers so that they can finance all of the costly new technologies such as the Volt and fuel cells.
Also, the Pontiac Torrent is no more and the Suzuki XL7 is riding on the last-gen Theta platform. On the new platform, all you have is the Equinox, the Terrain, and the Caddy SRX. But the SRX will be at a price/content point significantly above the Equinox and Terrain.
===========================
It is true the Pontiac badge is no longer supported in 2010, which is a good point.
However, the Saturn Vue has yet to be scrapped (like the Saab 9-4x was), and is unlikely to be until/when/if Saturn itself is discarded (which is Q4 2010 at the earliest, according to GM’s ‘progess report filed last week), because until the Aura hit the market, the Vue was the best seller for them. So that still leaves us with 4 going forward.
Anywhoo, my point is that last month GM sold 33 different trucks…under various names/badges. I’m thinking that is just a ‘touch’ high.
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April 5th, 2009 at 4:08 pm
I’ve got another idea that ought to greatly help in getting us LOTS more EREV’s. I really have to have a small SUV like the Transverse for my business. How can we get more bucks to GM, and, to make one of those EREV designs “front and center”, yet, take most of the business risk and consumer risk and profitability risk entirely out of the equation (and also with all the other Voltec platforms)?
I really need something about the size of the Transverse for all of my business equipment (where I go to auto repair shops and train the best techs for advanced L-1 systems diagnostics with the Genisys scan systems).
**************************
SOLUTIONS
**************************
We could have an additional optional battery that lets us get an additional 10 or 20 more miles on top of the original EREV 40 mile range battery. It could be a “plug ‘n play” “stack-your-pack” option that will most certainly do many great things.
1. It could be leased with “transferability”, so, if you don’t use it, you could find someone else who would need it. (It would have a “capacity monitor” which would be an exact measure of residual value, and, be proof you hardly ever needed it, keeping most or all of it’s value back to you!!)
2. If you don’t need it (and you bought it), you could just resell it.
3. It could serve as a “loaner” if your original array had a fault, and, you could not make an appointment right away.
4. It could be a performance option in areas where the AC is needed most of the time,
5. It could be a performance option in cases where the driver needs to go at highway speeds for very high percentages of the driving. This could help assure that the original array is kept at average demand-rate-of-discharge for maintenance of expected longevity.
6. It could be made to be V2G in cases where utilities would be interested in participating in V2G.
7. A lease could make it financially-available to anyone at any time.
8. That extra block of cash (but not a large “out-of-pocket” amount for me), would go the farthest way in helping GM get “recharged”.
Dan Petit Austin TX.
(just got back from my semi-annual 3-day vacation).
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April 5th, 2009 at 4:09 pm
Detailed article on the Bolivian lithium supply.
http://www.dailymail.co.uk/home/moslive/article-1166387/In-search-Lithium-The-battle-3rd-element.html
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April 5th, 2009 at 4:19 pm
#16 statik says “I’m thinking that is just a ‘touch’ high.”
Yeah, no kidding. I’m thinking this is what the PTF meant by too many brands and too many nameplates. Ford has figured it out. Why I the concept so hard for GM? (Plus the styling is a little too Mad Max for me, the Equinox seems preferable).
#13 john1710a says “It’s interesting to see how quickly Volt is being re-categorized as a long-term solution.”
This is just plain false. The numbers have been 10K and 60K with an introduction in November of 2010. If anyone thought selling this number of cars would have a serious impact on the bottom line of GM they were delusional. When they get to 250K a year, which they will, then we’re talking about an impact.
GM is becoming competitive in the sedan marketplace and has a chance to do well. The Malibu can hold its own against the Camry and the Accord. Assuming the 1.4 turbocharged engine does its job, the Cruze will compete well against the Corolla and the Civic. That leaves the Volt to compete head to head against the Insight and (your beloved) Prius — and that has to be something of a blowout.
So GM will win one of the three. What it has to do is stay competitive in the other two categories.
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April 5th, 2009 at 4:29 pm
#18 Cautious Fan –> Thanks for the interesting link to the article about lithium from Bolivia. I’m not sure that lithium is going to be as hard to get as the article suggets, but it was interesting to read.
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April 5th, 2009 at 4:35 pm
statik @16 said
…my point is that last month GM sold 33 different trucks…under various names/badges. I’m thinking that is just a ‘touch’ high.
————————————-
Another way to look at it is that GM sold 3 (?) different trucks as 33 differently badged and styled models Arguably, that’s a good thing, not a bad thing. It allows the development time for 1 truck to be multiplied into 11 variations, on the average. That means the total sales associated with the major costs are increased substantially, while total costs are increased only slightly and some unit costs actually decrease because of higher volume.
At least that’s supposed to be how it works
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April 5th, 2009 at 4:42 pm
john1701a @13 says
“..2015 seems to be when expectations are being set for [Volt] achieving mainstream status. Question is, what will be sold at high-volume to typical consumers in the meantime?”
———————————————————–
Malibu will and Silverado will, one of the Buicks will, and all will be sold with significant margins.
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April 5th, 2009 at 4:43 pm
Need help understanding the issue I keep hearing about the “bond-holders”.
So, why do the bond-holders, just not sell the bonds? I obviously, am not a financial guy, but this seems even to simple.
Sorry if this is a really dumb question, but it won’t be my last, I am sure.
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April 5th, 2009 at 4:43 pm
The fact remains the Terrain is just old terrain, when it should sport numbers better than the Ford Escape (Mariner) Hybrid. Compare an estimated 21 city for the Gimmy with 41 city for the Escape. And then on the highway, compare 30 for the Gimmy with 36 with the Ford. Too little, too late.
The “quick rinse” might cut the overhead for new cars, but where is the vision? In five years, what will be the line-up of high quality cars and trucks? A half dozen Voltec drive vehicles will not get it done.
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April 5th, 2009 at 4:48 pm
Some pundits are reporting that all this bankruptcy talk may actually be a high-stakes game of chicken noting Obama to be an avid poker player. The idea is that bondholders and the union will wither to accept concessions in the remaining weeks rather than face the prospect of greater losses in bankruptcy court.
——————————————————–
Yes, including me and DonC, right here on gm-volt
A pundit is someone who offers to mass-media their opinion or commentary on a particular subject area (most typically political analysis) — Wikipedia
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April 5th, 2009 at 4:52 pm
#23 JEC asks “So, why do the bond-holders, just not sell the bonds? I obviously, am not a financial guy, but this seems even to simple.”
————————————
Because they are thinking they can get more by holding on to them than they can by selling them at a deep discount on today’s open market. It’s a risky bet, but one that may pay off.
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April 5th, 2009 at 4:53 pm
#23 JEC
Because the bondholders think that they can get a better price from the US government than they can on the open market. (GM bonds are currently trading at around 15-20 cents on the dollar.)
ETA–Oops. I’m sorry. I obviously should have refreshed before posting. I agree with RB.
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April 5th, 2009 at 5:00 pm
This car is fugly. Just my opinion. I dont like “boxy” designs (think Scion)
Hopefully all the Fritz Blitz bankuptcy talk will win the game of chicken. C11 would be a disaster.
PS: Go MSU Spartans
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April 5th, 2009 at 5:07 pm
RB & LauraM,
Thanks!
That makes sense.
So, the bondholders really could get out, but at a high loss. So if GM goes bankrupt, what would the bondholders payout amount to? (greater than the 15-20 cents, they could get today?)
I feel like I am becoming a financial wizard, from all the great info I get off this site. (well, wizard may be a stretch, but definitely learning a thing or two about markets and how companies operate)
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April 5th, 2009 at 5:07 pm
This is just plain false. The numbers have been 10K and 60K with an introduction in November of 2010. If anyone thought selling this number of cars would have a serious impact on the bottom line of GM they were delusional. When they get to 250K a year, which they will, then we’re talking about an impact.
_________________
I suggest you read the loan request #3. Expectations from Volt as part of the recovery effort are moved over to long-term efforts instead. That addresses the negative cash flow problem.
Remember, Volt was indeed intended to impact the bottom line originally. Now, it won’t even be competing with Prius.
Also, remember that you are better informed and get updates far more frequently. Those that don’t check status as often see a different picture emerging. The rollout in 2010 is still thought to be available at local dealers for everyone. But now, it will take a number of years more before that happens.
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April 5th, 2009 at 5:16 pm
@#4& 24 Van
Umm thanks for pulling numbers out of your ass but the latest Escape Hybrid and Mariner Hybrid both get 34 City/31 Highway, per their own websites – nowhere near 41mpg. And both start at $30,000. Nice try kthx.
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April 5th, 2009 at 5:18 pm
There is much room in the market for a 30 mpg SUV.
Those will sell.
Just keep the concept style for once and do not change it.
It’s very nice. Good work GM
FYI the Prius is very overstocked right now. they are not selling.
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April 5th, 2009 at 5:56 pm
#29 JEC asks
“So if GM goes bankrupt, what would the bondholders payout amount to? (greater than the 15-20 cents, they could get today?”
————————————————-
Most of GM’s bonds, unlike most of Chrysler’s bonds, are unsecured. That means that they do not carry with them the right to own a particular property if the company goes into bankruptcy. The corollary is that what the GM bondholders will get if the company goes into bankruptcy is particularly uncertain. From the bondholders’ perspective, they would like full recovery of $1 return for $1 invested (after all, it was a loan, not a share). They might hope to get half of that, and even 25 cents on the dollar may be more than the present market price. Or, maybe they would get shares in the new GM and those shares would actually be worth something.
Bankruptcy categorically works against bondholders. The good part (from the bondholder point of view) is that in bankruptcy there is an order of payment, and bondholders are paid off before some other people, such as owners of ordinary shares, get anything at all.
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April 5th, 2009 at 5:56 pm
hayley @ 31, oops I used the Fusion numbers but the bottom line remains the same, compare 21 city for the Gimmy with 34 for the Escape, and 30 highway with 31 highway. It is outdated (old terrain) and weighted down with overpriced options will not be all that much cheaper than a reliable vehicle from Ford. Remember, not one GM SUV was recommended by CR, not one. But the Ford Escape Hybrid was recommended.
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April 5th, 2009 at 6:03 pm
Premium gas hit $2.69 today. Just 31 cents short of $3. The latest news from Honda is the release of the efficient Insight. My boss just bought another company car. I had mentioned the Ford Fusion to him. Guess what, it’s a Matrix.
We can’t blame the new GM management for the timing of the release of another truck. This is the momentum from the prior team. I suggest GM redouble the effort for an early Volt release. The energy currently stored in the EV buyer market is near it’s maximum now. The top should be late Summer 09′ when gas prices level off around $3 a gallon. This will be 15 months before the scheduled release of the Volt. Do the math.
=D~
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April 5th, 2009 at 6:03 pm
I am in the market for my next car. My 1996 Altima just turned 200k miles, and beginning to show its age.
So….Here are my current cars in my radar:
1) Honda Insight
2) Honda Fit
3) VW Golf diesel
4) Ford Focus
5) Toyota Corolla
6) Ford Fusion (cost?)
7) GM? Sorry, just cannot find anything that tickles my fancy, while saving my pocketbook. Come on GM, get something worth my time on the market. The Volt is beyond my financial means.
Criteria
Low insurance
1) under $20k
2) Lasts at least 15 years, 200k miles w/o any major repairs
3) I have little need for amentities, such as auto transmission, ac, power brakes, power windows, power steering. I am willing to sacrifice all these for fuel economy and price.
4) The company needs to be around for 20 years.
5) Prefer all wheel disc, and no drums, but will compromise on this.
6) Must be capable of carrying 4 people uncomfortably
7) Prefer 4-door, but willing to look at 2 door
9) Low overall total cost of ownership
10) Must be maintainable by normal person. No special tools required to perform normal maintenance, such as oil, brakes, muffler.
PS: I saw this excellent video comparing the Insight to VW Golf. Makes me think the Golf diesel may be the way to go.
http://www.techeblog.com/index.php/tech-gadget/fifth-gear-honda-insight-hybrid
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April 5th, 2009 at 6:08 pm
#29 JEC comments
“So, the bondholders really could get out, but at a high loss”
—————————————
Keep in mind that the bondholders are a big group. Perhaps some are people who originally loaned GM money at the face value of the bond, in the hope of getting interest and then the principal back. Anyone in this group likely will take a big hit.
There are many other present bondholders who have purchased their bonds at a discount, perhaps a big discount. If they bought bonds for 50 cents on the dollar, they are hoping to get back more than that. The same is true if they bought at 15 cents on the dollar. Many original bondholders have by now sold out and taken losses already. Others have not and will lose a lot of money. Some bought low and are holding on as a speculation. There is no one situation that represents them all, so it is not surprising that it is hard to get agreement among the group.
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April 5th, 2009 at 6:57 pm
To JEC @36
I recommend you take a look at the Chevy Cobalt. I just helped my daughter buy one. She loves it. It is rated at 37 HWY for the 5-speed manual. And it is sweet looking and handles and rides exceptionally well. I’ve driven lots of small cars and this is a gem.
It was $16,000 out the door, tax and everything.
Chevy is making solid vehicles, with excellent warranties too.
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April 5th, 2009 at 7:22 pm
Hopefully, GMC will go away along with Pontiac, Saturn, Hummer, and Saab. If GM wants an Equinox with different styling, they can use their Buick or Cadillac brands.
Cutting down to 3 brands is definitely an area where GM can go deeper. Toyota has 3 brands (Toyota, Lexus, Scion). Most the other big car makers only have 1 or 2 brands. If GM was the still the number 1 car maker in the world, they might be able to justify 4 brands. But now that GM has lost this title to Toyota, and with Toyota having only 3 brands, it’s pretty hard to justify GMC, especially with GMC vehicles being so similar to their Chevy counterparts.
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April 5th, 2009 at 7:54 pm
On a side topic, the President’s main man for GM has been Steven Rattner. Mr Rattner is profiled in an article in the WSJ this evening. It is a long article, entitled “Rattner Rises…”. According to the WSJ article, most of President Obama’s decisions have followed Mr Rattner’s recommendations. The article discusses Mr Rattner’s track record in previous work. Short excerpts from a long article:
Mr. Rattner’s primary experience — making bets on companies at private-equity firm Quadrangle Group LLC, largely in the media industry — has been mixed. Amid a brutal fund-raising climate, Quadrangle recently delayed plans to raise $2 billion to start a buyout fund. Its media hedge fund folded late last year. Several investments are struggling, including ones in Spanish cable operator Ono and the publisher of men’s magazine Maxim.
The firm’s highest-profile loss was a $250 million wrong-way bet on Alpha Media, the publisher of men’s magazine Maxim, made in June 2007 at the market peak. Crushed by the declining advertising market, the company recently shut down its other title, music magazine Blender. …
Alpha presents another awkward issue for Mr. Rattner. One of the main lenders in the deal is Cerberus Capital Management LP, the private-equity firm that owns Chrysler and stands to lose a lot of money as a result of Mr. Rattner’s decisions in his new job. Cerberus controls a large chunk of Alpha Media’s $125 million in senior debt and could end up owning the company. …
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April 5th, 2009 at 8:09 pm
Why would anyone think Geithner knows what he’s talking about? He can’t even run TurboTax or did he just make a deliberate mistake?
If the US is broke, how will it carry GM, the UAW and the warranties?
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April 5th, 2009 at 8:10 pm
RB
“Because they are thinking they can get more by holding on to them than they can by selling them at a deep discount on today’s open market. It’s a risky bet, but one that may pay off.”
___________________________
Or they simply can’t bear to take action when it would only lock in what amounts to terrible actual losses instead of the paper losses they now face. Perhaps the future will bring better opportunities once the deck chairs are re-arranged yet again on the great ship of fate.
__________________________
JEC 29
As GM has no cash, no one is buying surplus auto manufacturing equipment in a shrinking market, fewer still are willing to speculate on buying GM’s surplus industrial land in Michigan, and the government would go to the head of the line to get paid back, followed by holders of some of GM’s largest credit facilities; I don’t see how bondholders would end up with even a few pennies in a bankruptcy. GM’ers can be proud that their company appears to be worth vastly more alive than dead.
Shareholders would wind up with pretty wallpaper unless the shares are in street name with the broker, then they’ll have only a receipt of purchase in lieu of paying a broker a fee to get their newly worthless stock certificates. A pretty poor reward for the investments of hard cash all around.
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April 5th, 2009 at 8:14 pm
“high-stakes game of chicken…… The idea is that bondholders and the union will wither to accept concessions in the remaining weeks rather than face the prospect of greater losses in bankruptcy court.”
This is far from a poker game, it’s a fact they will face greater losses in bankruptcy court.
30 MPG WOW!
Wonder what it would have been if the COD Police had not been on vacation during the design phase. Maybe GM’s trying to use up their Hummer parts.
(COD – coefficient of drag)
NPNS!
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April 5th, 2009 at 8:31 pm
I’ll bet the COD is actually very good on this vehicle, but not quite as good as the Chevy Equinox, which is very slippery looking for a crossover SUV:
http://www.autoblog.com/2008/12/21/detroit-preview-2010-chevrolet-equinox-debuts-with-direct-injec/
I like the looks of the Chevy better, but the Terrain might look better in the flesh than in the photos.
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April 5th, 2009 at 8:47 pm
# 29 JEC/ #37 RB.
I agree, but I’d add one thing. GM’s bonds have been trading at junk status since 2005. So even many of the people who lent GM the face value of the bond knew that they were making a risky investment. And they were compensated for that risk with a higher rate of interest.
There are some bondholders who bought 10 or 20 year bonds in the late 90s when GM had an A rating. Maybe even a few who bought GM 30 year bonds in 1980 when GM still had its AAA rating. And they’ve lost quite a bit. But my guess is that these people are in the minority.
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April 5th, 2009 at 9:50 pm
PLJ @ 44, you can get a little closer to “in the flesh” by checking out the Detroit Free Press article at:
http://www.freep.com/article/20090404/BUSINESS01/304040001/GMC+s+new+Terrain+takes+on+small+SUVs
and watching the video on the right hand side.
And from leftlanenews.com/gmc-terrain.html – GMC Terrain will be produced at the CAMI assembly facility in Ingersoll, Ontario with pricing starting in the low $20,000 range. Maybe Statik can go watch them roll off the line.
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April 5th, 2009 at 10:01 pm
This is what we really need, a sister to the equninox. I would be thrilled to death if it used the VOLTEC drivetrain, so it doesn’t huh… More wasted money, so lets throw more billions to pointless ideas, just like this. We really need more suv’s/crossovers on the road. While were at it, lets jump gas back to $4.00/Gallon so we feel right at home. I don’t like being so sarcastic, but we have the Camaro ready to launch, the Volt sometime next year, GM on the brink of being bankrupt, GM talking about getting rid of Hummer, Saturn, Pontiac, and this is all the better they can do? IMHO, it looks like the Vue anyway, I really don’t see the point. Can they (GM) not come up with anything better to do with the money?
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April 5th, 2009 at 10:26 pm
PLJ #44
I don’t know, that thing looks pretty boxy to me. The front windshield is canted but other than that, it looks like aero is poor. It still gets 30mpg highway, though. If the power is OK and it’s as roomy as it looks in the photo Statik linked, it should sell well to those that like this design and have their desires met. Personally, I think the sleeker Chevy design will have more appeal and better mpg.
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April 5th, 2009 at 10:37 pm
I suppose the COD is not a meaningless number, but it sure seems an indirect measurement of something significant. How about at a steady state speed of 60 MPH, what is the mileage, what is the COD, and how much better and worse would the mileage be if the COD was increased by 15% and decreased by 15%. Now if we had a table for every GM vehicle, we could assess how well GM is doing at putting efficiency before styling. Maybe a difference between .27 and .31 is insignificant. I do not think too many of us know.
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April 5th, 2009 at 10:46 pm
#21 RB says “At least that’s supposed to be how it works”
As one pundit to another (LOL), the problem is that you can’t concentrate on selling the best one if you have a lot of nameplates. Yes more nameplates will let you sell more overall, but the overhead kills the margin. As for development time, the time spent on all the variations would be better put to use more frequently refreshing the nameplate, ensuring that the design didn’t go stale, rather than creating slightly different nameplates.
The thinking has changed. It used to be the P&G method of brand proliferation was thought to be the better practice. Now it’s thought that simplifying the product line and concentrating on the better products will give you better returns. This is what Ford is doing, and it seems to be working. IMPO aka In My Pundit Opinion.
Dealers are basically the same. With so many dealers in a given market — a few strong and most not so — no single one can afford to spend the money needed for the incremental sales.
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April 5th, 2009 at 10:50 pm
#30 john1710a says “I suggest you read the loan request #3″
I’m not sure what you’re referring to. Can you give me a cite?
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April 5th, 2009 at 10:57 pm
The same day I see an actual, sold-for-real-revenue Honda Insight out on the road, I hear GM’s building yet another badge-engineered trucklet.
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April 5th, 2009 at 11:13 pm
Imagine if they gave this car the GM two mode hybrid system… it would be an SUV (or crossover, whatever it is) with city and highway MPG both north of 30, probably mid 30’s, and the car would be like $25,000 (starting) if guessing 2k over normal sticker.
solid decent looking car!
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April 5th, 2009 at 11:37 pm
So what is so different about this from the Equinox? Statik’s link to a picture of the GMC Terrain’s interior looks to me just like this interior shot of the Chevy:
http://www.autoblog.com/photos/live-2010-chevrolet-equinox/1237885/
Or is this just to try to bolster the GMC division, to try to keep it alive? IMHO, I think it is time for GM to realize that three divisions, Chevy, Buick, and Caddy, is more than enough in today’s world.
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April 5th, 2009 at 11:38 pm
Nice, and must be a hybrid for 30 MPG.
Good luck GM.
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April 6th, 2009 at 1:33 am
@#34 Van
Apologies for the bitchy post, I could have worded that better.
Anyways, this is a good option for those who only have $23k to spend. However this may be the bare bones version, so when details come out about standard equipment and such we will find out which is a better deal. Even though better fuel efficiency is good for the environment, sadly for most people the deciding factor comes down to money. If fuel savings don’t amount to the $7000 difference in price, many people won’t care about the better mpg.
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April 6th, 2009 at 4:17 am
I have no problem with a hybrid SUV.
Its not what I want – I want something with a plug – but I would take that plug-in Jeep Wrangler EV we’ve seen like NOW.
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April 6th, 2009 at 7:19 am
I see poker I do not play poker and will not say what I do play .
But as I see it the union needs to cut its dues by half and thus cutting payroll + taxes the take home pay of the membership will go UP . The cost to GM will be less and the UNION will reap the bennies of acualy doing some thing .
Plus if the Bosses want security they can pay for it from their own pockets not from the union .
Saterday is comming .
God Bless
Tiger
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April 6th, 2009 at 7:20 am
P.S.
I do not bluff .
God Bless
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April 6th, 2009 at 2:09 pm
#36 JEC
With TCO evidently so high on your list of priorities, you should consider buying a top-quality used car–couple yrs old, 30k-ish miles. I’ve done so, time and again, and with the better and better quality over the years, it’s become an easier and easier decision. You typically pay a huge premium for the emotional benefit of a new car.
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April 6th, 2009 at 2:12 pm
I am quite impressed by the stats for this SUV. I can’t believe they can use such a small fuel-efficient engine and provide sufficient power. That said, obviously, the ICE car is reaching its limits of efficiency. GM engineers have done amazing things with an inherently crappy engine design- imagine what they can do w/ electric motors! This is hopefully only a temporary stopgap until GM EREVs their SUVs. I know, many people hate SUVs, but until everyone stops buying them at least they should be electric!
in other posts….
Okay everyone, I’ll not go on another tirade about fuel cells, just this: please study them! They are a looong ways off, if they ever become viable at all. We just had a poll in a class entitled “Future of the Automobile” that I am taking and a large majority of the engineers in the class predicted fuel cells would *never* become the primary means of automotive propulsion!
And if we’re wrong…
The great thing about EREV, as GM has pointed out, is that it is compatible with any future fuels. Want to use ethanol or H2 in the range extender- go ahead! If you want to go full EV, just add more batteries! GM will surely make fuel cell versions of the Volt, since it lends itself beautifully to such extensions. That is the beauty of Voltec, we can stop arguing about what future fuels will be and instead be able to adapt when they come!*
*That said, I’ll bet you they won’t be hydrogen anytime in the near future
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April 6th, 2009 at 3:21 pm
The GMC Terrain looks really good. I guess this answers any question we may have had about GM rolling GMC into the Chevrolet division. Good design, GM. Not sure about GMC, though.
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April 6th, 2009 at 3:35 pm
Put the volt system in this …. get me at least 30 miles on a charge and sign me up.
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April 6th, 2009 at 4:48 pm
Wow, I have no use for this vehicle. I’m 30-ish, in a committed relationship, and I live in a suburban neighborhood that was built in the 1950s, and I work at a university. You’d think I’d be in the demographic that they’re targeting with a somewhat-bigger-than-a-CUV vehicle. But it won’t do what I need.
Here are the problems for me:
* Will it be extra work to put it into a tight parking spot in the parking garage at work? (My Ford Ranger takes a lot more care to park than her Prius.)
* For any vehicle that isn’t a pickup truck, I’ll need to make extensive use of home-made roof-racks to haul materials for home-improvement, gardening, and woodworking projects. I’m short, so, accessing a roof-rack on this thing would be tricky. Both the Saturn Vue and the Ford Escape Hybrid are a little too tall to make accessing the roof-rack comfortable for me — especially while maneuvering a sheet of cabinet-grade plywood over my head.
* This thing is appears to be too long to share my side of the driveway with a 4′x8′ utility trailer. So, even if it can tow, the towing-capacity is mostly-irrelevant to me.
I should probably wait until my Ranger dies and replace it with a Subaru Impreza wagon, then get on with life — but that doesn’t decrease my use of foreign oil, or my CO2 footprint… No plug, no sale.
So I’m hoping for a Volt Wagon or a Ford Focus BEV wagon. And, yes, I realize a monstrous roof-rack with a sheet of plywood will destroy the AER on any vehicle — but I plan to take the roof-rack off when I’m not using it. That means that the details of how I connect my stuff to the factory-roof-rack are quite important. The hardware store is close by, so if my AER is cut by 2/3rds, I’ll still be able to make it there and back.
Anyway, I realize that this may be a “different strokes for different folks” type of situation, but this vehicle certainly won’t convince me to open my wallet. No plug, no sale. I hope that GM can find it’s way back to viability, though, so that the Volt can make it into production!
P.S. I may be able to convince her that we can upgrade her Prius to a Volt hatchback/sedan — but the Prius has to start wearing out before that happens. And the Prius is still going strong at 100k-miles.
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April 6th, 2009 at 6:49 pm
Ron: We all know you loathe fuel cells with your disparaging ‘fool cells’ remark. I’m sure some distant great-great relative of yours said the same thing about the gasoline powered horseless carriage. ‘Oh where oh where will we purchase this horribly explosive gasoline?’
Enough.
The technology needs to start somewhere.
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April 7th, 2009 at 7:20 am
Man you guys are grumpy. An SUV that gets 30mpg on the highway w/o hybrid tech is incredible! That’s very nearly as good of mileage as my wife’s ‘05 Camry – and it’s a car!
Maybe we don’t need more SUVs, but I’d sure be tempted by an SUV that’s cheaper to drive than many sedans that are on the road. I have a Jeep Cherokee and I use is capabilities everyday, but on a good day it only gets 19 mpg or so.
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