[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.

[94bird]

You know, all of you missed one of the biggest contributors to GM's demise. The cost of their pensions and the like for retired employees is astronomical. I seem to remember for every car they sell about $1500 of it goes to paying for their employee's pensions and healthcare. Ford is also paying a high price for their employee benefits but they apparently budgeted much more accurately for it. Regardless of what many of you seem to think the profit margin for a OE is not very high at all on most of their vehicles (except Escalades and the like (IMG:http://www.frrax.com/rrforum/style_emoticons/default/wink.gif) )

I don't think GM, Chrysler or Ford have pensions for new employees anymore. I think they all stopped at least 5 years ago.

Toyota, Honda, etc. don't have that to bog them down.

I have to admit DCX is doing VERY well right now, making cars that compete in niche markets and selling more than they can produce. Within 2 weeks of releasing the 300C SRT8 for orders at the dealers there were already over 10,000 orders with deposits. Heck, we had only figured we'd make about that many in the first year. Now, we're playing catch up. DCX plants can't even come close to making enough 300Cs (5.7L). Every one of them that leaves the plant right now is sold. Our engine plant that makes the 5.7L is working 2 assembly lines for 3 shifts a day to try to keep up. Even Business Week just rated DCX as the company within the Big 3 that has the best business plan for future success. It's refreshing actually.

I certainly do wish GM a quick turnaround, but financially they're in serious trouble, and unless they get on the ball soon and make some car designs that really turn heads it won't get any better.