[Absolut Speed]

Last fall, GM announced a reduction in GTO production and had to offer large rebates on this brand new model to sell off inventory

In December, GM had a 301 day supply of SSR's on hand.

Then the XLR gets a production cut from 23 to 12 a day. There's a 200 day supply of them out there. Cadillac hoped to sell 6,000 annually, but through 18 months, sold just 4,744.

February, GM decides to cut $1500-$2000 off the sticker mid-year on Trailblazers/Envoys/Rainiers and currently has 0% for 60 months to get them selling again. TrailBlazer sales fell 46% compared with January 2004. Envoy sales were off 52% and Rainier 27% according to Autodata reports.

Then for March, the factory that produces the LaCrosse & Grand Prix is shutting down for a week.

Then the earnings forecast for 2005 drops 80%. Stocks drop to 8 year low.

I think this goes back to cutting the Camaro and Firebird out of the lineup.

[Absolut Speed]

I was kidding about the Camaro/Firebird thing, but the list of attributable faults is so long....

Rebates are certainly a huge issue. They are a nice advert once, but then they cheapen the car, and then you can't get away from them.

Pricing is an issue, as noted with the $2000 MSRP drop in some Trailblazer/Envoys. I think it can be reasonably argued the GTO and SSR were overpriced.

Stigma of poor overall quality from prior decades. It's going to take a lot of time to overcome the perception of lesser quality, that's assuming they are near Honda/Toyota standards now.

Sourcing Chinese engines (personal lament). I was hoping to replace my wife's Bravada with an Equinox, as she likes the ride height of an SUV, and I like throwing the dog in the back along with camping gear. But don't think I can with the Chinese motor, especially when its cousin, the Saturn VUE gets a Honda engine, built in Ohio, that comes with 50 more hp and better fuel mileage.

Bad sales forecasting (see the original post)

Interior quality with cheap plastics and plenty of squeaks.

Interior design has not been one of GM's strengths in recent times.

They're still making overweight cars. The SSR ended up as a pig, and with a lot less hp than initially speculated.

Seen the HHR? It's a PT Cruiser style ride, complete with throwback looks and 4 banger on a compact car chassis, that's arriving 5 years after the PT Cruiser first started cruising the streets. That's what I call behind the curve.

GM was supposed to be at the forefront of hybrid/electric design with the EV1, but the first hybrid success is the Honda Insight and the Toyota Prius. Then Ford rolls out a hybrid compact SUV just one year after Chevy finally launches a respectable compact SUV. And what does GM do in response, delay the launch of the hybrid VUE.

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