[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.

[02midevil]

Just thought I'd add my lil .02. GM is hurting like the other 2 big ones.

GM folded one of its own brands.
GM banked on changing Saturns little cars to midsize, that flopped and Saturn is in trouble. They have pumped some money into Saturn (remember the record setting LSR car) to try to turn it around.

The market today is based on trucks and GM holds a good share of it right now. But with everyone else entering the market there will be less for the rest of the market.

I've done business with some door panel manufacturers for GM and they have such a small margin on profit. Every year the profit is cut more by GM. If they can't produce there are 5-10 others viaing for the same panel sale at GM.

Chances are you will never see anything but the Vette and trucks last in the market. There will probably always be a marketing shine on flip-flopping car styles like the Cav.