billddrummer

Has GM Changed Its Tune Yet?

Hi Judy,

Great research, thanks!

I'm glad you're looking at the auto industry. I value your insights.

One thing that struck me as I read your excerpts is the smugness (hubris) of the GM commentator. As if the company isn't on the brink of bankruptcy, but that the important thing is that they apparently gained market share over Toyota.

With the recent uptick in fuel prices (albeit far lower than last summer), wouldn't it make sense to continue to develop fuel efficient vehicles for sale in 2009 and 2010, rather than rely on the already flawed business model that emphasizes trucks?

The company didn't talk about profits per vehicle, didn't talk about the evident weakness in the product line for mid-sized sedans, continued to gloss over the fact that it produces subcompacts at a loss, and still lags Japanese, Korean and German makes in customer perception, despite improving quality over the past 5 years.

It looks like more of the same from GM.

Ford, on the other hand, appears to be on the right track. The new mid-sized sedan (Mondeo) looks to be a truly world-class entry into the Camry/Accord realm, and will cost less to make because of its global platform. (The vehicle is already sold in Europe.)

I think that GM's share will continue to sink, notwithstanding the comment in the conference call. And when the company returns to Washington to get even more bailout money, questioners will find that nothing much has changed.

ATB,

Bill