AND 
Op-Ed: GM Reviews its ‘First 90 Days of Progress,’ and Mark LaNeve has Left the Building!
CEO Fritz Henderson took to the airwaves this week to give us a first 90 days update on the happenings at ‘new’ GM.
Mr. Henderson confirmed that the majority of the restructuring plan that was put in place in July was still on track, and that the four remaining core brands were performing to expectations, and retaining the market share expected of them.
He further announced that through the first three quarters of the year, GM has trimmed the number of dealers to around 5,800 (from 6,575-with many more still to come), reduced the total workforce by more than 18,000, and eliminated three more nameplates on their journey down to 34 for 2010.
Throughout the conference call, GM’s CEO stressed the need for improved business results, good cash flow and profitability in the very near future. The success of those three items being paramount to launching a successful IPO next summer.
In a related matter, ‘new GM’ has yet to release any financial reports at all, and this conference call itself was prefaced by Randy Erics, Executive Director of Investor Relations, with the statement: “…as we review the first 90 days, I would like to point out we will not be discussing our financial results today.”
GM is under no obligation to release financials to the public as it is currently a private company, however Fritz Henderson later suggested that more financial clarity will come at some point in November. The cynic in me now expects a announcement on the DoE ATVM loans to GM to manufacture more Voltec-based vehicles just before this November fiscal update.
While the 90 day update did provide some good prospective on the overall picture at GM, inventory levels and future predictions, the CEO failed to address the costs associated with the failure to close deals on three of the four major brands slotted for sale (Saturn, Saab and Opel-GM did finalize the deal to sell Hummer just this past Friday). As a example of such a problem would be that Saturn was not included in ‘old GM,’ and with the failure of deal with Penske, the 371 existing dealers will now be due compensation under state franchise laws…not to mention the lost revenue stream of not building product for Penske’s Saturn.
Also, Mr. Henderson did not comment on the costs/future commitments that GM is taking on with the reintegration of Delphi components into the mothership (about 2.85 billion-ish), as it exited bankruptcy on Tuesday.
Fortunately for those of us primarily interested in the Chevy Volt, all the news was good. Mr. Henderson stated once again that the Volt project was still on track, while reminding us that the Brownstown Township facility will produce lithium-ion battery packs for extended range vehicles in 2010, and that over 80 pre-production Volts have been produced to date.
Looking past the first 90 days, it seems that the first job for day 91 at GM was to show the door to accept the resignation of Mark LaNeve, VP of US Sales, and former VP of Sales & Marketing. On the conference call Mr. Henderson stated the following in regard to Mr.LaNeve’s dismissal resignation and future plans:
“Mark LaNeve has elected to leave General Motors on October 15 to pursue another opportunity with a non-automotive company.” On a personal note, I will miss Mark’s optimistic wordsmithing on monthly sales reports. Also, that ‘non-automotive opportunity’ is at Allstate, where he is said to be heading up the marketing. It doesn’t seem possible, but Mark will have a even more daunting task at Allstate than GM, trying to make people forget their ‘three D’ mantra for handling claims – Delay, Deny and Defend. /bonne chance
And so the executive shakeup begins. Score one for new Chairman Ed Whitacre.
Which begs the question, can CFO Ray Young’s departure be far behind? While Mr. Henderson acknowledged rumors of Mr. Young’s impending exodus during the Q&A following his presentation, he stopped short of giving Mr. Young a vote of confidence going forward simply saying, “There are a lot of rumors in the press and Ray is our CFO…Ray is our CFO. I read the rumors like you do.”
Strangely enough, on the very same day as Mr. LaNeve elected to leave, GM has already named his replacement in the form of Susan Docherty (formerly of Buick/GMC fame) to become the new VP of US Sales…and then (according to Automotive News)
severed ties with Mark’s favorite ad agency Modernista two days later.
Hopefully they asked Ms. Docherty what the price of diesel was before they chose her for the job…it would be nice to see some of GM’s international, fuel efficient diesel lineup hit North American shores to compliment the Volt’s introduction
Source (GM)
88 Responses to “Op-Ed: GM Reviews its ‘First 90 Days of Progress,’ and Mark LaNeve has Left the Building!”
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October 11th, 2009 at 8:42 am
Ouch.
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 8:43 am
The phrase Putting Lipstick on a Pig comes to mind.
But if GM is going to survive long enough for the Volt to prosper, it needs to get more cars sold, not cut dealerships that are the future of the brand. I know some dealerships don’t sell a lot of cars, but a dealership that gets cut sells none, and it encourages sales of competing brands in the area.
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October 11th, 2009 at 9:19 am
As clear and concise as it can be, the status of GM a’ la Statik.
Thank You
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October 11th, 2009 at 9:19 am
Lyle,
Speaking of time frames and changes, are we close enough to start a (one year) count down until the Volt is available? Is there a date yet set for the day when Volts (the few that will be produced) will be in a showroom(s)?
What I have read, the Volt will be “released” in the fall of 2010, but does that mean it will actually be available for purchase at the beginning of 2011?
Your thoughts?
D.
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October 11th, 2009 at 9:36 am
Not sure you can fault a VP of sales for GM’s problems, when they have been decades in the making.
If it is true that Saturn dealers continue to get paid, then GM should lock the doors on those dealerships.
Hopefully GM will close on those divestitures soon. The longer they remain open, the less attractive those deals will be to those buyers.
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October 11th, 2009 at 9:41 am
GM has said they will deliver starting November 2010. We have to wait a little longer for the one year mark.
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October 11th, 2009 at 9:46 am
It’s okay that they skipped GM’s financial condition today. The only one that will matter is the report in October just before the next presidential election; where the American people will then decide if it was all worthwhile and which candidate will oversee GM for the next four years.
Hint: It ain’t gonna be Obama!
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October 11th, 2009 at 9:50 am
Good question! And based on the number of dealers remaining, does that mean each of them only get 2 in the first model year?
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October 11th, 2009 at 9:54 am
That graphic for the story is fantastic. It’s almost the caliber of what would be seen on The Daily Show. Lyle, the professionalism of thie web site astounds me. It’s way better then some of the big corporate blogs like Gizmodo. Just had to give you props.
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October 11th, 2009 at 9:55 am
There was a recent mention of a Sept 2010 release.
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 9:55 am
And an excellent graphic today!
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October 11th, 2009 at 9:57 am
My biggest fear is gas will still be < $3.00/gal next year. If that happens, the Volt will be seen as a financial failure. Economy more than anything is going to drive the popularity of Volt sales.
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October 11th, 2009 at 9:59 am
CorvetteGuy
I suspect that you had your tongue at least partially in cheek, because I doubt that a large %age of the population will be too concerned with GM’s Fiscal report.
It’s all about jobs.
JMO,
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 10:03 am
I just wanted to add something to the article, so as not to mislead/confuse anyone.
The actual number of pre-prodution Volts was 74, as reported by Lyle yesterday…not the ‘over 80′ mentioned by the CEO earlier in the week.
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October 11th, 2009 at 10:09 am
Looks to be a bit of a Russan Epic…
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October 11th, 2009 at 10:12 am
Just wanted to say Thanks Statik, your report contained lots of news for me.
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October 11th, 2009 at 10:13 am
Ah, The price of gas can be manipulated, by friend or foe.
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October 11th, 2009 at 10:15 am
I was thinking the same thing about that graphic. OUTSTANDING.
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 10:18 am
What’s the difference if 100 cars are sold at two locations instead of 200 at one?
Some dealerships can be cut. In my town, we had one Chevrolet-Cadillac and the other Pontiac-Buick-GMC that were just a few blocks away from each other. One was bought out by the other a few years back (before the financial meltdown) with the idea of amalgamating all cars into one place with more space and better location.
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October 11th, 2009 at 10:20 am
I assumed the difference was because you had an editorial deadline and that when you submitted the article, it probably wasn’t known that they stopped at 74.
Not a big deal either way.
Be well,
Tagamet
/when do you think the production Volts will be “on sale”?
// great job on the article.
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 10:22 am
Now that the 100 MPG hummer and fullsized GM trucks are being built i am officially out of the running for the volt . WHy get squeezed into an econo -box to go electric,you can do it in style.
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October 11th, 2009 at 10:22 am
Maybe short term… but it would be smart to have a factory built and already building Volts… if gas prices go up, so would Volt demand, and so could Volt production numbers.
P.S. Gas is about $4 US per gallon where I live in Canada.
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October 11th, 2009 at 10:22 am
Ditto!
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 10:25 am
Over 70. Less than 90. Close enough. That’s plenty for testing in Death Valley and up Pike’s Peak.
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October 11th, 2009 at 10:30 am
I doubt that GM will be able to meet initial demand even if gas is sub-$3. There are enough people in this country that know that it’s not all about saving a buck. In fact, it’s unlikely that the initial Volts would be able to recoup a return on investment at $5 gas.
JMO
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
(Quote)
October 11th, 2009 at 10:35 am
______________________________________________________
Well done Op-Ed Statik…thanks.
———-
Can GM keep up with the Electric Car Revolution that GM helped ignite?
I hope the GM Exec guys soon implement (vs. “considering, studying, conceptualizing, discussing”) the Voltec Platform more broadly (i.e. BEV version –sans RE, & use in other GM models). It would be a mistake for GM Execs to overly pigeon-hole the application of the Voltec Platform.
The GM Voltec Development Team was wise in architecting the Voltec Platform to be easily implemented in other EV configurations/models; smart engineers. I’m not sure that the GM higher ups (perhaps including Lutz?) understand the design elegance and wider implementation opportunity of the Voltec Platform.
A year ago I expressed concern that GM would help ignite the Electric Car Revolution through the introduction of the Chevy Volt but would ironically not be able to keep up with a fast moving Electric Car Revolution. That concern is more so now because the amount of resources that Government (taxpayers), University Research, Battery Makers, Car Makers, etc., are directing towards EV development/production is at a much higher degree of participation than what anybody would have imagined just two years ago.
It reminds me of that classic cartoon of the kid (GM) that for fun (PR Halo) makes a small snow ball (Chevy Volt) at the top of a snow bank and pushes it down the hill (Bailout Cover) until the snow ball picks up speed and grows so large (Electric Car Revolution) that the snow ball ends up rolling over the kid.
______________________________________________________
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October 11th, 2009 at 10:40 am
Corvetteguy
Given the remaining dealers are far fewer than last year, they should all get at least 3 (g).
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 10:49 am
I don’t think Volt will be released nationwide in 2010. I’d guess just few states/cities.
Doesn’t make sense to train people in 5,000 dealerships …
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October 11th, 2009 at 10:49 am
Get your facts right!
Saturn is owned by Old-GM!
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October 11th, 2009 at 10:51 am
No. If the recovery happens (and we don’t have a double dip recession) we will be into 3 digit oil prices again … peak oil will take care of that.
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October 11th, 2009 at 10:57 am
“OUCH” is right, Tag! And Statik, our beloved perenniel pessimist, has given several good reasons to say “ouch”! But I’m a bit puzzled, Statik, at your statement, “The cynic in me now expects an announcement on the DoE ATVM loans to GM to manufacture more Voltec-based vehicles just before this November fiscal update.” Didn’t you mean, “The optimist in me now expects an announcement on the DoE ATVM loans to GM to manufacture more Voltec-based vehicles just before this November fiscal update?” After all, more Voltec-based cars would be GOOD news, right?!?
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October 11th, 2009 at 11:04 am
General Motors Doing Well – in China
Friday, October 09, 2009
By Staff, Associated Press
Beijing (AP) – General Motors Co. said Friday it set a sales record in China in September and total sales for the first nine months of the year rose 55 percent to nearly 1.3 million vehicles.
GM and other global automakers are looking to China’s fast-growing market to drive sales amid slack demand elsewhere. China’s monthly sales have surpassed those of United States for all but two months this year
http://www.cnsnews.com/news/article/55231
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October 11th, 2009 at 11:05 am
Gary, what you described is cutting the fat out and is a good idea. The problem is that GM is cutting dealers in towns that have only one dealer for GM, and one for Ford and one for Toyota and one for Nissan, etc. A lot of those GM buyers that lose their dealer aren’t going to drive to the next county, or even across town, to stay with GM. They are going to buy a Toyota/Ford because they don’t want to drive 15-50 miles to get their car serviced.
But I do agree with your statement that some dealerships can be cut, the question is how much muscle is GM cutting while trying to cut just fat. I will bet that the MBA’s in charge of this process are going to be penny wise and pound foolish, that is what MBA’s do.
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October 11th, 2009 at 11:10 am
Gary,
Yes, this is what I heard also, that many GM dealerships in populated areas were close enough that they were competing against each other.
But GM also has a really good base of dealerships in rural areas, and I don’t believe they are shutting any of these down.
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October 11th, 2009 at 11:14 am
GM Marketing…
Saw / particpated in something yesterday I have not seen in many, many years…an auto manufacturer (not dealer) hosting a six or seven vehicle test drive program. It was held at a recently opened Lowe’s in the Nashville area. A local FM radio station crew was broadcasting from the event.
Vehicles were all Buick and GMC. Included two iterations of the 2010 Buick Lacrosse, and a GMC Terrain (same platform as the updated Equinox).
Program was run by a consumer research outfit hired by GM.
All vehicles had Michigan plates. Inducement to take the drive was a $30 gift card to Lowe’s. Signed some paperwork (similar to what a dealer looks for prior to a test drive) and off you go on a short test loop with the vehicle of your choice, accompanied by a rep from the consumer research outfit.
Anyway – The 2010 LaCrosse CSX has a beautiful interior, smooth but sure-footed handling and plenty of creature comforts – should do well in its segment.
Bottom line, I don’t how many events like this GM has planned, but in my short while hanging around it was obvious most testers were pleased/suprised with what they saw / experienced – including my wife (drove the Terrain) who is not easily impressed.
So it seems GM is beginning to do more than just buy TV ad time.
I’ve owned / had company cars from from all three Detroit automakers, Toyota, and Kia. The 2010 LaCrosse is a class piece of work. Wondering if that amazing center stack screen is similar to the one planned for the Volt…
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October 11th, 2009 at 11:19 am
That graphic is from a couple of excellent movies.. I recommend them to anyone.
The first one from 2002 is :
28 Days Later
http://www.imdb.com/title/tt0289043/
The sequel from 2007 is:
28 Weeks Later
http://www.imdb.com/title/tt0463854/
28 weeks after an out of control virus kills everyone in England, the US Army attempts to recolonize (legally, with British tourists in the US), but unfortunately a carrier survived the 28 week quarantine and mayhem ensues. A napalm strafing run on London streets is memorable.
No electric cars in the movie but highly reduced oil consumption is depicted.
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October 11th, 2009 at 11:20 am
Agreed, It is all about post oil positioning. How and when we go post oil? That is the subject of great debate!
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October 11th, 2009 at 11:22 am
Last thought…similar events for Volt should engender some real excitement…
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October 11th, 2009 at 11:24 am
nasaman,
A cynic might think that the grant would be awarded for “other than deserving” reasons (like a vested interest).
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
(Quote)
October 11th, 2009 at 11:25 am
we could have a Federal Emergency Electric Car Depot somewhere in Arizona .. all ready to go in an oil emergency.
It would promote US manufacturing (no Priuses please) and employment without outright money giveaways and we would have an emergency reserve of electric cars.. after all electric cars are essential for national security.
No, I’m not serious..
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October 11th, 2009 at 11:25 am
Gary, DaveG, I stand corrected. I had seen a couple news reports of small town dealers being forced to close and I thought that GM was not trying to keep them open. When Gary and Dave both stated that they thought GM was in fact trying to save the small town dealers I looked around and found the link below. I should have researched more before I started to rant.
http://www.imakenews.com/sgintl/e_article001439129.cfm?x=bdPvh4c,0,w
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October 11th, 2009 at 11:31 am
Who pays for the training?.. GM or the Dealer?
The training could consist of a reading a few manuals that dealt with the new systems in the Volt and perhaps a traveling instructor like Dan.
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October 11th, 2009 at 11:44 am
It could happen, look at Nissan just as an example. Traditionally GM has not been at the forefront of small car technology, and this is where many of the electric cars seem to be heading.
Apparently China is making it a state priority to be number one in electric cars.
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October 11th, 2009 at 11:50 am
My idea was to use the list that we have here to do the same thing.. Test Drives, and soon.. GM would end up with 50,000 fanatic ambassadors spread across the world.
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October 11th, 2009 at 12:43 pm
When do we get our money back? Is their a repayment schedule?
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October 11th, 2009 at 12:53 pm
Lock the doors?
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October 11th, 2009 at 12:56 pm
Bien suenos, mi amigo!
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October 11th, 2009 at 1:02 pm
At the rate GM was spending money and asking for loans early this year, I am surprised they have not gone back to the taxpayer well for more cash bailouts. This, I believe, indicates that the restructuring is at least starting to work. Don’t misunderstand, I DO want GM to succeed and bring out a whole new line of EV’s, but the only people making money right now are the same people on Wall Street that caused the economic turmoil in the first place.
The stock market will probably close this year at 10,000 — which is about where it was when it started to crash. Millions of jobs lost. Now, the market is back, but not the jobs.
And “We the People” paid for it. Are still paying for it.
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October 11th, 2009 at 1:07 pm
What shade of blue are you right now? Holding your breath too long is bad for your health!
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October 11th, 2009 at 1:08 pm
Hey Herm,
Knowing the outstanding precision with which GM provides us independent techs ICE fault-related data from when all GM vehicles communicate to the Genisys scan system (from GM’s designing these diagnostics from many years ago), the incredible things that ONSTAR will be doing for the Volt owner is to report far ahead of time to the local Chevy Store service department and its technicians, what is out there that is going to come in, order the part or system or diagnostics procedure or software, have it all (including, possibly “just in time” tech training) in place even before when the Volt owner is ever aware/informed that an adjustment needs to be made on their Volt. (Please excuse the run-on sentence).
ONSTAR will do all kinds of other terrific things too, and, owners should never EVER feel that anything is “soft-switched” which could be possibly misconstrued to compromise privacy to the least bit whatsoever, in recognition of GM’s strongest ethics.
I’d really like to be able to learn (in “several months? [hint]“) on the display screen, all of the circuits and systems in Volt if I got the chance and was permitted to do so. (But it would take only about a week, since I’m already familiar with the basic components).
Excitement is the very best friend of all learning.
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October 11th, 2009 at 1:10 pm
CorvetteGuy,
Although I was/am against the bailouts, the stock market rebound means a LOT to retired folks, like Moi.
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 1:25 pm
Nissan got $1.5B plus $100M for infrastructure. Tesla and Fisker got something like $.5B. Ford got $5.9B. Given these numbers, it seems difficult to even think that, much less make a case for, GM being treated exceptionally well when getting $30M (aka $.03B) “for less than deserving reasons”.
Personally I’m OK with all the grants and all the loans with the exception of Ford’s, which strikes me as excessive given what I know about Ford’s commitment to EVs or other alternative fuel vehicles. Six billion dollars would buy a lot of Volts or Leafs. For that matter it would buy a lot of Model S’s.
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October 11th, 2009 at 1:25 pm
Just back from the flying field. Had about a dozen guys flying RC planes, gliders, and helicopters today. They are a diverse lot. Age 25 to 65 with most earning a 60k-100k annual income. All but a few aircraft are lithium powered.
After one experienced pilot (age 40) landed his big bucks RC I asked this question.
“Hey, you interested in the lithium powered Chevy Volt?”
He gave me a blank stare (no clue as to what a Volt is).
“It’s the new lithium battery car that’s coming out. I am interested.”
_________________________________
I know several of these guys are going to be looking into lithium vehicles when available. One RC enthusiast lives about 3 miles away and drives a GEM to the field.
The well of unknowing future buyers may run pretty deep.
=D~
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October 11th, 2009 at 1:36 pm
I don’t think that’s the case. If it were then Henderson wouldn’t have been involved with the sale. I think the only parts of Saturn left with the bankruptcy were the dealers which didn’t agree to the closure.
On the other hand, I’m not sure that brand closure means the dealers get compensated. Just not that familiar with dealer agreements.
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October 11th, 2009 at 1:40 pm
There has to be an IPO, which would be necessary for their to be a market allowing the government and the unions to sell their ownership stakes. But if you consider tax revenues we may already be past the break even point.
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October 11th, 2009 at 1:48 pm
Statik, I hope you don’t get sued for that description of Allstate’s mantra.
Is there more info on reduction in upper management at GM? (As in how many and % of upper management personel.) I would expect that all those responsible for discontinued brands would loose their jobs, and I suspect there is more opportunity to cut fat in the upper ranks.
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October 11th, 2009 at 1:51 pm
Concise and objective summary. The Volt is obviously the center of interest on this board, but there is a broader context.
Keep us posted on how the Volt as halo car is working out. We know twice as many Honda owners as Chevy owners have a college degree, and that Honda owners are are more likely to use the internet. As one article concluded:
A note to those wealthy employers: Think twice about splurging on even an understated new car. If you see scads of Hondas in your company parking lot, their savvy owners may be wise to your ways. If you only see Chevys, you might be able to get away with it.
http://autos.yahoo.com/articles/autos_content_landing_pages/1139/what-your-car-says-about-you/
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October 11th, 2009 at 1:57 pm
If a decent health care bill get’s passed I guarantee you Obama will get reelected.
Biggest reason, white males 30-65 only make up 25% of voting population now. Typical right wing tactics are going by the way side, you can’t just cater to white males any more and that’s exactly what Republicans do.
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October 11th, 2009 at 1:59 pm
Gas here in Berkeley, Ca is $3.07 as of this very moment. Don’t worry, China and India’s economy are humming along, consumption of fuel is still going to skyrocket and gas will be well over $4.00 this time next year for sure.
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October 11th, 2009 at 2:24 pm
Dan,
That makes On-Star sound a leeeeeetle spooky! Very function-filled, but spooky. Will it remind me if I forget where the heck I was supposed to be GOING??
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
(Quote)
October 11th, 2009 at 3:31 pm
White males 30-65 (I assume you mean between the ages of 30 and 65), also pay 75% of the taxes and we are tired of getting fleeced. We are also tired of supporting the 47% of the population who pay no taxes at all at the federal level yet demand and receive benefits at ever higher and higher price tags.
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October 11th, 2009 at 7:22 pm
When you get sick of waiting for those dreams to come true, the Volt will actually be on the road.
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October 11th, 2009 at 7:34 pm
Your right, it was in ‘the can’ before yesterday’s final pre-production tally piece from Lyle, but I also didn’t want to change it in the article because the information/tally came from a direct quote from Fritz on the GM conference call I was on, and I did not want to put words in his mouth.
Sidenote: I don’t want to speculate on when ‘production’ Volts will be on sale (and I think by that you mean both ‘on sale’ and in customer’s hands). Mostly because I think the definition of what is ‘production’ is getting pretty blurred, what with the government ’s 30 million subsidy on the initial 500, and the recent announcement of early sales to fleets.
/thanks for the thumbs up on the graphic (I was a little bored watching Leno the other night and did some multi-tasking with photoshop)
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October 11th, 2009 at 7:36 pm
How do you trust a system/car/company that is already ordering replacement parts before you even know you have a problem? A far better thing would be for the Volt to never need replacement parts and have On Star never dial up the dealership. Engineers and techno-geeks might find this level of communication fantastic, but I think the general public will see it as crossing a line and confirming their worst suspicions about GM. Just build better cars GM, no real need for Big Brother to ride along.
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October 11th, 2009 at 7:37 pm
statik — Excellent post. Thank you. Personally I’m going to miss Mark.
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October 11th, 2009 at 7:45 pm
It’s not a matter of “still getting paid”, it’s about breach of contract. The individual Saturn dealerships are independent franchises run by regular citizens, not GM. These people invested lots of money to open the dealership and signed a humongous contract with GM to do so. In that contract, it says that GM will continue to supply the dealership with product and support for that product and if they don’t, it’s breach of contract. GM’s pulling the plug and failing to find a buyer will leave these independent business folks high and dry. They will sue and they will win. GM will be paying out a lot of money. This is why it was key for them to find a buyer for Saturn, Hummer and Opel.
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October 11th, 2009 at 7:53 pm
Red HHR- I agree. Statik is a great asset to this site. He is Yin to Lyle’s Yang.
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October 11th, 2009 at 7:55 pm
“On sale” and “in customers’ hands” could refer to different groups of cars, too. They could lease those 500 “public” Volts for say, a buck a year. Then they’d have a great Project Driveway fleet in the capable hands of say, uh, the folks on Lyle’s list. If they were worried about people fearing an EV1 repeat, they could skip the lease part. Just a thought.
Be well,
Tagamet
/I know, I know, “Tag, check your meds”
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 11th, 2009 at 7:56 pm
I would be very surprised if they get compensated from a brand closure. They are independent contractor agreements and there would be little point to compensation in the case of brand closure, but stranger things have happened.
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October 11th, 2009 at 8:05 pm
Dav8or,
… Not if GM is in bankruptcy proceedings. All those dealerships will get is pennies on the dollar. GM should shut it down ASAP if there are no buyers.
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October 11th, 2009 at 8:45 pm
Just wanted to wade in/expound on this one (which I didn’t in the article because it was getting way too long as it was).
It is true parts of Saturn are in ‘old GM,’ originally Saturn and Saturn distribution were filed as bad assets. But GM then retained the licensing, and some other assets (Spring Hill Plant), and had continuing agreements to supply with the dealers, (and then those dealers signed back tenative agreements with Penske on/by Sept 11th). The whole thing is pretty convoluted.
The Saturn dealers are due compensation in the traditional manner (according to state franchise), but there is indeed less cost associated with the wind-down as a whole because of C11. The bankruptcy process does not let them wipe the dealers away clean. The estimate is that it will cost them around $150,000 to a million per dealer to sever them.
GM did issue a quasi-statement about this indirectly through John McDonald (GM spokesperson), acknowledging that there would now be payments due, but according to him they never did account for ‘avoiding the payments’ (I’m not sure how one ‘accounts’ for payments that may or may not happen, and that you can’t put a reasonable price tag on…perhaps he was just speaking generally).
All in all, the ‘Saturn dealer payout’ was/is not a big issue (like the complexities of the Opel transaction, and a half dozen other things), but it was one that was easy to illustrate as a example. However, I should not have made a blanket statement about Saturn as a whole not being in ‘old GM’…my apologies.
http://money.cnn.com/2009/10/06/news/companies/gm_plans/index.htm?postversion=2009100619
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October 11th, 2009 at 9:26 pm
Just wait for that Breathalyzer on the steering wheel.. there goes that three martini lunch.
One advantage of this system is that Big Brother should know if the local dealership is ripping you off with bogus repairs or maintenance.. customers are irritated by this and it pays for GM to weed these dealers out.
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October 11th, 2009 at 9:27 pm
Old GM is not making any more cars, they cant deliver to these dealerships.. same thing with the lemon law, old GM was the one that sold you that lemon
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October 11th, 2009 at 9:51 pm
There is actually a lot more information (again, I didn’t want to turn the piece into a novel).
I guess your definition of what constitutes upper management would be the main issue here, but generally speaking the ’salaried’ employees have been trimmed by about 5,000 heads (or 20%) YTD.
Actually, to be fair it is even higher than that, but forced re-acquisition of troubled (yet critical) assets from companies like Delphi, American Axle, etc. has jacked the number up with ‘new’ payroll. I’d say they have rolled out 6,000ish (25%) or so through the first three quarters.
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October 11th, 2009 at 11:31 pm
For that kind of money, I would rather pay into R&D for fuel cells of either H2 or SOFC type, or expanding infrastructure for the smart grid, etc. Every one of these companies is in the same boat, and will still be in competition with one another, so I don’t see that it’s the government’s place to spend my money on them. If I want my money spent on them, I will invest it myself, thank you. Not to mention that the shipping industry needs an environmental overhaul much more than the auto industry. I love GM for pursuing Volt, but business is business. Leave it at the consumer tax breaks.
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October 11th, 2009 at 11:41 pm
Wow OK,
…you’re working way too hard to make me feel welcome in the the land of my birth. Now I’ll just quit my job and grab a slice of watermelon on the way home from the welfare office, since solo is kind enough to carry my a$$ anyway. Thanks buddy.
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October 11th, 2009 at 11:50 pm
Your cite to the article makes things fairly clear. I think what McDonald was saying is that the internal budgeting assumed payouts to the Saturn dealers so the fact those payments will now be made doesn’t mess with their budgeting overly much. I suspect this is true simply because the sale of both Hummer and Saturn always seemed tenuous. Of course the big unanswered question would be how much did GM assume it would have to pay.
I don’t understand why C11 would effect protections under state law once GM came out of the bankruptcy. The whole dealer issue is a mess since different states have different laws, and perhaps made even more complicated by the execution of the agreements with Penske. What is most unfortunate is that the Saturn dealers had very good reputations for service.
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October 12th, 2009 at 5:09 am
Statik, I have to echo RB.
Nice job, my friend. Thank you.
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October 12th, 2009 at 6:06 am
Mark LaNeve did what he thought he had to do. He spun a rose colored picture of GM even as the statistics reflected a less optimistic reality. Couldn’t help to notice that LaNeve’s delivery sounded very much like Rick Wagoner’s.
NGMCO appears to be getting away from the cheer leader types on the front line. And more toward a realistic delivery of information and of progress.This is a positive.
=D~
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October 12th, 2009 at 6:17 am
Don C writes, “Nissan got $1.5B plus $100M for infrastructure. Tesla and Fisker got something like $.5B. Ford got $5.9B. Given these numbers, it seems difficult to even think that, much less make a case for, GM being treated exceptionally well when getting $30M (aka $.03B) “for less than deserving reasons”.”
GM already got $60Billion. Anything more they get, they should jolly well “deserve” in some very meaningful way.
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October 12th, 2009 at 10:22 am
jeffhre:
LOL! +1
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October 12th, 2009 at 10:24 am
Tagamet:
Amen brother! Preach on.
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October 12th, 2009 at 10:28 am
DaV8or:
Right.
“Believe none of what you hear, and half of what you see.”
The laws of physics are still in force, the last I heard.
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October 12th, 2009 at 11:15 am
Noel,
Thanks. Sometimes even *I* need encouragement (lol).
Be well,
Tagamet
Let’s Just Get The Volts’ Wheels On The Road!!**********NPNS
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October 12th, 2009 at 2:15 pm
“No electric cars in the movie but highly reduced oil consumption is depicted.”
——————-
Now that’s funny. I don’t care who you are.
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October 12th, 2009 at 2:58 pm
Guys,
I really see all your points very well and actually agree with those sensations completely regarding everything you have all said.
But did you know that if it were allowed by the owner as a new industry standard, not only would automated datastream transmission to GM vastly help GM extend the battery life as well as the other main powertrain components to an extremely exceptional benefit toward, and as well as at, the End of component Life, but, also especially, in case of an accident, the live human intellectual response is by far one of the most highly desired functions you could ask for.
That response may also include “live” technical responses for unanticipated situations which could never be foreseen, and, such questions must be answered to you in real time.
In these cases, I would certainly wish for live persons to be at my beck and call for any unusual incident, and, for when I have simple operational questions about my Volt, to be answered immediately.
How many of us complain bitterly and impatiently about being in phone-option-selection-”hell” when we need or want to talk to a live (correct) person right away when calling for assistance to just about any company nowadays?
Yes, there are many things about Volt that few of us know about, but, I certainly want, *demand*, that ONstar be in my Volt.
The servicing of the Volt will be so very clear to GM operations and Techs, there just will not be any of this
WAG baloney associated with it, so, servicing costs after the extended bumper to bumper (be SURE to get that) warranty will be far more clearly defined in electric vehicles than it ever was in ICE vehicles. THAT I CAN ABSOLUTELY ASSURE YOU as an ASE-Examined L-1 Advanced Systems Educator.
97% of otherwise good independent techs will NOT be servicing the Volt or likely any BEV. My interest in learning everything about the Volt is as much based on keeping even the Advanced L-1 techs
FAR AWAY from anything GM (or anyone else) does not want them to touch. My responsibility to my techs is firstly safety for them. With Volt, it might be sometime in 2017 at the soonest that they might actually DO something with the ICE only.
This brings the other caution I have for all independent techs and all others who do not know ICE diagnostics extremely well. That is, that the market for ICE diagnostics AND work will begin to start to dry up starting in about 4 years with Voltec market penetration, so they are strongly advised to start as soon as possible to learn everything the right way with the GM ICE Advanced Diagnostics software that is already downloaded into a Genisys scanner if they want to survive financially after about 4 years from now.
This is also because you can not just clear codes in a 2010. You must have the OEM factory diagnostics bidirectional testing software to remain in business, and, you must be TRAINED in the use of it to stay in business, as everyone else either fails or presents very high costs in their rates for low repair effectiveness.
The owner even nowadays with over 100,000 miles is right now, on average, driving around with one serious hidden problem, one pending serious problem, and one minor problem that also needs attention. NONE AT ALL OBVIOUS. Mainly due to loud stereos, brisk AC’s, and lots of sound proofing. The computer needs to report everything to GM to get it to you under warranty work.
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October 12th, 2009 at 8:37 pm
Hey Tag,
“Onstar reminding you where you were going…”
If you have an old cell phone, the battery in it can get weak, and, if your service is with one of those companies that has exceedingly strong coverage (Verizon, for instance), you might be getting, as I had experienced several times at exactly the same spot on one road here in Austin, a location-related “thought pause” from lots of emf’s. (Esp. when I had two expresso’s).
You can actually have 2 or three cell towers trying to maintain contact with an old phone which has a low or weak battery. Try trading phones with your spouse for a month (call forward to each other).
I got a different cell phone service provider (otherwise nothing at all wrong with Verizon), and a new phone, and only had that same occurrence at that exact same spot once in the last year when the battery in the new phone was really low, and the phone was in my (tight) pants pocket. Maybe my body was too much of the antenna, seriously. When I placed the old phone on the dash going past that bad spot, the effect never happened.
Take care while you are away. We will miss you for the two weeks.
Dan.
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October 12th, 2009 at 8:49 pm
PS,
I would just love it if ONSTAR could be my “hands free” phone service while I was in the car for this very reason.
(IDEA: Driver-presence call forwarding through to ONSTAR).
That way, it will just look like either I am singing along with the music, or, talking to myself. (grin-smile).
I hope you are able to get these last two posts, since when that effect used to happen to me, it was entirely disconcerting back then til I figured it out. Too much is not researched about cell phone tower energy convergence, it seems to me.
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