TomWilkinsonatGM

GM: Expect More Short Covering

I won't comment on the specific activites you mention, but just a reminder for your general readers that current GM stock will become stock in the "old GM" should the 363 sale occur as expected, and old GM will be wound down in a chapter 11 process. The "new GM" that will emerge will be owned largely by the U.S. government, Canadian governments, and UAW VEBA. Old GM will initially own just 10% of the new company.

All of this is detailed in the court filings at gmcourtdocs.com, and in extensive SEC filings available on our investor site.

GM's Use of Bailout Money: What Else Aren't They Telling Us?

Sorry, this post is a little bit of "fire, ready, aim." The potential for GM support for Delphi's emergence was discussed on page 33 of GM's February 17 viability plan, and has been a subject of discussions with the Task Force ever since. There are plenty more details in the 8-K GM filed on June 5. So to imply that all of this is a dark conspiracy is just plain wrong -- it's there, online, in documents filed with the SEC and posted on the GM Investor website.

GM and China: What Are They Thinking?

I suggest people interested in this issue check out today's AP story by Tom Krisher. It adds some much needed perspective.

GM will continue to build about 65% of the vehicles it sells in the U.S. in the U.S., and more than 90% of the vehicles it sells in the U.S. in North America. We will continue look outside NA for small volumes of vehicle for niche segments, like we do today. (G3, G8, Astra).

GM Needs to Be Leaner and Meaner if It Wants to Survive

GM's viability plan calls for the company to break-even at a U.S. total industry volume of 11.5 to 12 million units. For reference, the industry as run at the 15 to 17 million unit range for the past 20 years. That's pretty lean.

A Modest Proposal For The U.S. Auto Industry: Stop Building Cars

The critical issue in vehicle development goes by the name of "integration." Whether it is making the engine and transmission work together seamlessly or ensuring that the side airbag inflates if (and only if) the vehicle is hit with a certain force and angle, integration of the various components is everything. The companies that do this best consistently top the quality charts, and have the happiest customers. As GM has gotten better at this, our vehicles have improved. Witness the new Malibu -- the best midsize sedan for initial quality in the latest JD Power study.

Mitt Romney's NY Times Op-Ed On the Automakers: Dead On

Unfortunatly, a lot of Mitt's information is out of date. But hey, the Romney's did leave Michigan in 1969. Since 2000, GM has completely overhauled its product lineup, and made a major commitment to advanced technology vehicles like the upcoming Chevy Volt. We have also cut our workforce by 52%, brought our plant capacity in line with realistic demand, and closed the productivity gap with the transplants. The last major piece, labor and legacy costs, were coming under control thanks to the 2007 UAW agreement. If that's not a turnaround, I am not sure what is.

The credit crisis has hit the industry hard. Bridge loans to get the industry through this downturn are a reasonable proposition.

General Motors: The Next Delisting from the Dow?

The EV-1 wasn't commercially viable, due to the limitations of the available batteries. (Note that other electric cars of that generation were also taken off the market.) Parts for the EV-1 were mostly hand-built, so there was no way to leave the vehicles in circulation. But much of what GM learned from the EV-1 is going into the Chevy Volt. Now that batteries have advanced, the electric vehicle once again makes sense.

General Motors: The Next Delisting from the Dow?

The auto industry is going through a period of profound change, and this has posed major challenges for carmakers based in the U.S. -- and elsewhere. GM has made a number of significant moves to reposition itself for sustained success. (Please visit our investor site for details.) New GM cars and crossovers are doing very well in a very tough market. And we are rebuilding our leadership position in advanced technology. None of this is easy, and none of it is cheap. But hold the obits. We are here to stay.

Sharing Speculative Interest in GM

The current spike in oil prices may seem "inevitable" in hindsight, but the reality is that it caught all carmakers by surprise. (Check out that brand new Toyota pickup plant in Texas...) The fact is, GM began a major transformation of its business starting early this decade, and as a result, we are well positioned to weather this severe downturn and emerge a leaner, stronger company.

GM now develops most of its products globally, giving us the ability to respond much more quickly to market shifts. 11 of our last 13 new products were cars and crossovers, and 18 of our next 19 launches will be cars and crossovers as well. The 2007 agreement with the UAW transforms that important relationship and bring GM's costs here much closer to those for non-union transplants.

Finally, check out our newest products -- CTS, Malibu, Enclave, Aura. They are winning awards and gaining sales in a very tough market. Those should be proof enough that we are here to stay.

Will GM's Volt Change History?

I am personally very excitied about the Volt. (And not just because I work at GM.) I drive about 25 miles on a typically work day, so I could do most of my driving on electricity only. Since I am driving an entry lux vehicle now, the projected Volt price is hardly a deal breaker. I am also glad that Toyota is pushing full speed ahead with a new Prius. A head-to-head battle between GM and Toyota will motivate both companies and result in better products for consumers. Big question: What will this mean for smaller companies that don't have the volume and global footprint to needed to compete in this 'arms race?'