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What GM's bankruptcy means for you

Quote:

What GM's bankruptcy means for you

General Motors' filing will raise concerns among GM vehicle owners and prospective buyers. Here's a look at its possible effects on car prices, warranties, resale value, service and parts.
By The Wall Street Journal

Price cuts, rebates and other incentives could make the next few months one of the best times in history to buy a vehicle. During the past year General Motors (GM, news, msgs) has lowered prices and offered attractive rebates, financing and lease terms as part of a plan to shrink inventories. But tight credit and overall economic uncertainty have kept many consumers away.

New-car deals
Now the auto giant's difficulties have helped push the average incentive on a GM vehicle, which includes cash-back offers and discounts, to about $4,200, said Art Spinella of CNW Research. He said that number could rise to $6,500 or more in the wake of a bankruptcy filing.

But the perceived risk in buying a vehicle from a company under bankruptcy protection is expected to scare away many potential buyers.

"Uncertainty may wind up driving some remarkable deals for consumers willing to take those risks," said Paul Taylor, chief economist with the National Automobile Dealers Association.

Resale value
The resale value of GM cars is expected to go from bad to worse under bankruptcy.

The average residual value of a GM vehicle at the end of a three-year lease is about 58% of its original price, compared with an industry average of 63%, said George Magliano, an analyst with IHS Global Insight, a market research company in Lexington, Mass.

GM's average is likely to fall by at least 10 percentage points in the immediate aftermath of a bankruptcy filing and will probably continue to sink in the long run, Magliano said, noting that the average for Chrysler, which also is in bankruptcy court, is "in the 30% range."

Warranties
The federal government has said it will back the warranties of GM and Chrysler vehicles as part of a plan to buoy consumer confidence and encourage people to buy cars.

Still, over the typical warranty period of three years or so, someone buying a GM car today could experience difficulty arranging and completing repairs under warranty, due to widespread dealership closings and potential shortages of repair parts as many parts suppliers struggle to stay afloat.

Service
Longer-term service for GM vehicles isn't expected to cause exceptional difficulty for consumers in part because many begin taking their cars to independent mechanics after their warranties expire.

Because GM vehicles account for a large percentage of cars on the road, the supply of parts and the number of technicians familiar with them are unlikely to wane quickly. However, customers who prefer dealer service may find themselves having to travel farther as GM continues to thin its dealerships.

Other automakers
Fallout from a GM bankruptcy could affect consumers who drive Fords (F, news, msgs), Toyotas (TM, news, msgs), Hondas (HMC, news, msgs) and other brands in part because carmakers are intertwined through their suppliers.

Hundreds of companies make vehicle parts and many work with several auto companies. Experts have long said a GM bankruptcy would significantly disrupt the supplier network, causing some companies to fail and leaving others reeling.

As parts suppliers reorganize to cope with difficulties related to a GM filing, other carmakers may have trouble getting the components they need to keep production moving and supply repair parts to their dealers.

While the current oversupply of vehicles from nearly all brands makes now a good time to buy, the deals may be fleeting. The supply of vehicles is likely to shrink, some experts say, as carmakers continue trying to align production with demand.

Economic improvement will eventually drive an increase in demand, but car companies may not be as willing to boost production as they have in the past. If supply lags as demand rises, cars could become more expensive and harder to find.

Questions:
1) Would you ever buy another GM or Chrysler vehicle?
2) Where did GM go wrong?
3) Do you try to 'buy American'?

Sauce: http://articles.moneycentral.msn.com...aspx?GT1=33009

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Originally Posted by ELITE_TRAYUNZE (Post 6446908)

Sauce: http://articles.moneycentral.msn.com...aspx?GT1=33009

Mmmmm.....sauce....

Wonder if the Canadian government will do the same thing about the warranties?

Tell me about the CAMARO!!!

Quote:

Originally Posted by ELITE_TRAYUNZE (Post 6446908)

Questions:
1) Would you ever buy another GM or Chrysler vehicle?
2) Where did GM go wrong?
3) Do you try to 'buy American'?

Answers:
1.) Yes
2.)UAW
3.)Yes

Quote:

Originally Posted by Timpo (Post 6447151)

GM = Epic Fail

Your posts are useless. Don't you think everyone knows by now that GM has failed? Or is posting "GM = Fail" supposed to be funny?

GM was probably one of the greatest car manufacturers in the world when they were in the height of the auto industry.

Don't forget they manufactured vehicles that were used in WWII and were a big part to the allied victory.

Which also means, Timpo, they were part of a force that gave you the freedom to post stupid shit like that whenever you please.

Yes, times may have changed and they went downhill but you don't knock the old players in the game when they innovated so much.

I think in the coming months and years GM will finally start building better quality cars and cars that people want to buy. Only thing I'm worried about with both GM and Chrysler is the future of performance orientated vehicles and with the US Government having control in GM and some control over Chrysler it could in the long run end the existence of domestic high performance vehicles as we know it.

Quote:

Originally Posted by ilvtofu (Post 6447041)

Tell me about the CAMARO!!!

http://blogs.edmunds.com/straightlin...nic-t-tops.jpg

Save the Camaro: 10 Camaros GM Needs To Build Right Now

This semi-regular column is written (in his own blood) by an automotive sage and noted malcontent, known as The Mechanic. Mercilessly beaten as a child with rolled-up back issues of old car magazines, our free-spoken hero developed a unique "for your own good" take on cars and the auto industry, along with an unfortunate habit of setting himself ablaze. Later, after a distinguished career as an automotive journalist and magazine editor, he cast off the reins of his musty oppressors, carved out his superego with a plastic spork and became The Mechanic.

Forget about bankruptcy. GM's big problem is the 2010 Chevrolet Camaro. The fools in the Center of Renaissance aren't building enough of them. They need to be cranking out more badass versions of their new red-hot hot rod; like right now. You know, before Obama and the Green Brigade take it away from us.

The Camaro needs saving. Here are my brilliant ideas how to save it.

The T-Top Camaro
From 1978 through 2002, Chevy offered the Camaro with translucent T-tops. That's 25 model years! T-tops are as much a part of Camaro heritage as high school parking lot burnouts, and it's inexcusable that the Camaro has returned without them.

GM should avoid the temptation to innovate, however. No power operation. No light-sensitive special tinting glass. Just order up some glass panels from whomever still builds them, break out the Sawz-Alls, and start installing.

The Diesel Camaro
Imagine this: Camaro Duramax SS. I dream of planting my Florsheim into the accelerator pedal of a Camaro packing a turbocharged, 6.6-liter V8 thumping out a massive 660 pound-feet of torque.

Sure the Duramax turbodiesel V8 spins to only 3,450 rpm, but by that time it could mulch a BMW 335d. And fueled with fry oil, the Camaro Duramax SS would be politically correct enough to serve as an Earth Day parade car for Ed Begley, Jr. Plus, think of the CAFE advantages.

Most of the engineering here is already done. All it takes is a leap of imagination, some faith in audacity, and a fortified version of the T56 six-speed manual transmission.

The Camaro Hybrid
A good chunk of the public is mesmerized by the word "hybrid." So give them what they want. I suggest the company just port the "Two-Mode" hybrid system over from the Tahoe Hybrid to the Camaro. Sure it wouldn't be much of a hybrid, but it would be hybrid enough to goose sales, plus Obama would love it.

Increasing sales over time would be easy. Just glue on more "Hybrid" stickers. They've proven to increase sales and decrease a vehicle's carbon footprint all by themselves, so why not take advantage of the new adhesives technologies out there.

The Camaro Sedan
Pontiac is dead and it takes the wonderful G8 sedan with it. But all it needs is a new grille, a fresh set of taillights and some fresh badges to become the first Camaro Sedan. As to those of you purists who would decry the Camaro morphing into a four-door, in this market no one can afford to be a purist. So get over it.

There's a BMW M3 sedan, a Dodge Charger sedan and there's about to be a Porsche sedan. The time for the family-friendly Camaro has come.

The Camaro Wagon
Speaking of family-friendly, it seems Australia's Holden builds a wagon version of the G8 (er, Commodore) called, cleverly, the Sportwagon. So slap the Camaro nose on that and get it into showrooms!

Fact is, BMW has had an M5 wagon in Europe for years, and Benz will sell you an E63 wagon right here in the USA. Well, how about a power man's version. Make mine a silver SS with V8 power and a six-speed manual.

The Camaro Camino
Hey, I've already turned the Camaro into a sedan and wagon, so why not a truck, too?

When Pontiac was Pontiac...way back in 2008...the 2010 G8 ST sport truck seemed inevitable. OK, that didn't work out. So it's simple: All GM does is take the nose it will use on the Camaro sedan and apply it to some Holden utes. And combining the Camaro and El Camino into one vehicle would be the ultimate expression of redneck culture.

The Camaro Grand National
It's not like Buick is doing anything with its glorious Grand National heritage. So GM should let Chevy use it.

The base Camaro's 3.6-liter DOHC 24-valve V6 is rated at a stout 304 horsepower -- more than most V8 Camaros had when they left the factory. Imagine then, how good this V6 would be with a couple of turbos packing the atmosphere in as quickly as possible.

I'm thinking something like 500 hp with a nasty turbo whine to go with it. Plus it would get decent fuel mileage when the car was driven lightly, which should keep the Greenies off its back.

The Camaro IROC 1LE
For those of us who grew up in the '80s, the greatest Camaro was the IROC. And the greatest IROC was the ready-to-race 1LE.

Transforming the 2010 Camaro into an IROC means a new hood with oversize NACA ducts, a ducktail rear spoiler and a set of gorgeous five-spoke wheels. Then, just like Chevy did in 1989, when the new IROC is ordered without air-conditioning and with a performance axle ratio, it should automatically become a 1LE, ready to go showroom-stock racing. That means carbon-ceramic Brembo brakes swiped from the Corvette ZR1; an engine oil cooler; stiffer shocks, stiffer springs and thicker bars; a lightweight carbon driveshaft; and a baffled fuel tank to keep the race gas from sloshing away from the pickup during hard cornering.

Topping it off should be a few mods: powertrain, chassis and suspension from the aftermarket like Ford did with the Cobra R Mustang a few years back. Then to push the IROC further, they ought to bring back the International Race of Champions and use production IROC 1LEs as the racecars.

The Camaro Z28
Everyone expects and wants a Camaro running the Corvette Z06's 505-hp 7.0-liter LS7 V8. So let's call it the Z28. Duh.

The Camaro ZL1
Just as obvious is a Camaro with the Corvette ZR1's supercharged 638-hp LS9. It would be even better than a mere Z28. So call it the ZL1.

Then, of course, there's mixing and matching, like a Camaro wagon hybrid or a diesel-powered Camaro sedan. So which one would you buy? I'm driving home in a Camaro ZL1 Wagon. You're welcome. -- The Mechanic, Inside Line Contributor

I care because....???

Questions:
1) Would you ever buy another GM or Chrysler vehicle?

I am not saying in the end I would end up with a GM product but it would be first in the search for SUV and Truck products. I would consider a few of the Cadillac models for daily driving.

2) Where did GM go wrong?

Plenty of problems with GM. Unionized workers with high wages is the initial malfunction but the problem stems beyond that. As time has gone on, other auto manufacturers have managed to undercut GM. GM has not remained competitive while other companies have had to break into GM's dominated market. To do that, they either made cheaper cars, improved reliability, improved quality and as time has gone on, they surpassed GM.

3) Do you try to 'buy American'?

I buy whatever suits me. I don't buy anything because I'm told to or because I have some patriotism. If GM can make a car that fits the criteria I have, I will consider the purchase.

Quote:

Originally Posted by Preemo (Post 6447764)

innovated what? are you are talking about pontiac aztek? who cares what GM did back 70 years ago man. they slacked off the past 20 years and now run by government. that's the real american way right there.

http://blogs.phillyburbs.com/news/bc...0831/aztek.jpg

helll.. if the camero has like a $10,000 off sale.. why the hell not.. where else can you find a car with like 400hp+ for such a good deal haha...

The UAW makes an easy scapegoat, but the blame should be directed towards management. They were the ones steering the operations. They were the ones telling the UAW what to build. They were the ones that kept making poor business decisions. The list goes on....

[timpo] so can i walk into a GM dealership and give them $15k in cash and ask for the keys to a Camaro?[/timpo]

union got such a good agreement because the dumb ass management agreed to it. I mean they had numerous chances over the years to ratify the union contract but I guess GM couldn't afford to hire a few CFAs to figure out what they were getting into.

Well, we should stop talking about how "GM should build cars that people want". The fact is that they ARE selling cars. They just can't keep up with the cost. So the management must take a big part of the blame. All the high rank officers are given golden parachutes, of course they'r not gonna work hard. We have to put people who are genuinely interested in the car industry and have full understanding of how the industry work in management positions.

Lol american base companys/cars was grown with fail beans.

But they promised me the Chevy Volt!!! I want a Chevy Volt!!! It's one of those 'electric' vehicles...you guys heard of those? GM promised one by 2010! Just one more year!!!

Wait a second...Honda and SEVERAL OTHER companies already have electric/hydrogen cars on the road...

Too little too late there, GM...