Big Threes' Restructuring plans

[argatoga]

Finally GM is seeing sense, but is it too late? I do like the idea of Pontiac becoming a niche performance brand.

Ford
http://www.autoblog.com/2008/12/02/ford-claims-to-be-back-in-the-black-in-2011-release-ev-sedan-sa/

In just a few short days, Ford and its two cross-town rivals will be required to lay down a plan before Congress that points a clear path towards profitability and global competitiveness. These days, any automaker's future will involve plenty of greenery, and as the first of the three automakers to submit its comprehensive business plan to the lawmakers in DC, Ford's plan includes electric vehicles slated for launch starting in 2010. First up will be a new electric van for commercial use, followed in 2011 by a new electric sedan. Other highlights include U.S. versions of the European-designed automobiles that are currently making their way across the pond, the sale of all its private jets, further plant closings and continued negotiations with the UAW.

So, what kind of money are we talking? The Blue Oval's plan calls for a bridge loan of $9 million to be made available, though it hopes it doesn't need it. You may remember that Ford bet Henry's farm already when Mulally first took office at the automaker, so it's already got a load of financed cash on hand to weather the current stormy climate through 2010. What's more, Ford hopes to get $5B of loans under the already-promised $25B for fuel efficient cars. On the negative side, the plan suggests that a bankruptcy of either General Motors or Chrysler would be enough to cripple Ford's operations. Barring that, even with a forecast of flat sales of 12.5 million units per year for the next three years for the U.S. auto industry, Ford believes it's on its way back to profitability as early as 2011. Check out the Blue Oval's official press release detailing its proposed plan to Congress after the jump.

[Source: Ford]

Chrysler
http://www.autoblog.com/2008/12/02/chrysler-plan-to-congress-requires-7-billion-in-aid-to-ward-off/

We've already seen GM and Ford issue their pleas for government loans, and now it's Chrysler's turn. The only privately-owned automaker of the three released a 13-page document outlining the aid it seeks from the Feds and how it plans on spending our hard-earned cash. If you want to read the full text, it's available after the jump. But the condensed version follows.

Chrysler is requesting a $7 billion "secured working capital bridge loan" by December 31st, citing the collapse of the light-duty vehicle market, the U.S. financial crisis and the global downturn in the economy as reasons it needs cash. It estimates by the end of the year it will only have $2.5 billion in working capital in the bank and that's not enough to keep the lights on through January.

The Cerberus crew is touting its partnerships, including those forged between Nissan, along with future plans to share platforms, components and "factory rationalization." It's also citing more employee cutbacks, an annual salary of $1 for CEO Bob Nardelli, and lack of bonuses for 2009 as steps the automaker has or is taking to keep costs at bay.

The section on "Providing Cars and Trucks People Want to Buy" covers plans to bring 24 major products to market between now and 2012, including a range of hybrid and electric vehicles covering "Neighborhood" EVs, City EVs, Range-extended EVs and a battery-powered EV. The latter will be assigned to government and business fleets for evaluations purposes in 2009, with sales supposedly beginning in 2010 and 500,000 examples being produced by 2013. For 2009, 73% of Dodge, Jeep and Chrysler vehicles will boast improved fuel economy over their current counterparts, some of which will be Flex-Fuel capable and the automaker is on target to offer 50% of its fleet in FFV guise by 2012.

There's no mention of consolidating, selling or killing brands, further employee cuts or the reduction of Chrysler's bloated dealer network. We get the impression that Nardelli and Cerberus are saying "We've done all we can, we just need some cash." But draw your own conclusions ? if you dare ? after the jump.

[Source: Chrysler]

GM

http://www.autoblog.com/2008/12/02/gm-asks-congress-to-kickstart-its-heart-with-ambitious-plan/

General Motors has just revealed the plan it has submitted to Congress today, and the details show just how far the largest U.S. automaker is willing to go in order to secure bridge loans from the federal government. The plan includes selling Saab, possibly killing Saturn and scaling back Pontiac, as well as reducing dealers and shedding more workers, among other things. Here's the breakdown...

Focus on "core brands": Chevrolet, Buick, GMC and Cadillac
Launch predominately high mileage, energy-efficient cars and crossovers
Sell Saab, HUMMER
Sell or kill Saturn
Reduce Pontiac to a "niche" brand
Trim dealerships from 6,450 to 4,700
Reopen talks with UAW to cut manufacturing costs further
Reduce total workforce from 96,000 to 65-75,000
Negotiate with lenders, remove $35.6 billion in debt
To do all this, GM is asking for a total of $18 billion in loans, which is considerably more than the $10-12 billion that CEO Rick Wagoner requested in front of Congress a few weeks ago. It needs $12 billion in loans by the end of next March to make it through the rest of 2009 and another $6 billion in revolving credit if conditions don't begin to improve by then. The troubled automaker also states that it needs $4 billion by the end of this month to continue operating and intends to start repaying the loans by 2011.

In exchange for government loans, GM is also open to a government oversight board that would monitor how the money is used, as well as giving taxpayers a stake in the company. Also, not only would Rick Wagoner get his salary dropped to $1, a number of other unnamed senior execs would get pay cuts, too.

Is it all enough? Sound off in the comments after reading the official press release from GM after the jump.

[Source: GM, Automotive News - sub. req'd]

 

[Top Geek]

Here's a restructuring plan for you Big 3: STOP MAKING BORING, OVERPRICED, CRAP CARS.

 

[Ezbok58a]

Here's a restructuring plan for you Big 3: STOP MAKING BORING, OVERPRICED, CRAP CARS.

Mustang, Challenger, G8, Cobalt SS, Corvette (zo6 and ZR1)...

Yeah, boring overpriced crap cars

 

[M_Bolc]

I sincerely beleive that Ford and GM should get the cash. They finally have got some good products for sale, its just that this crisis hit them at the worst possible moment.

Chrysler: no one would miss it I guess...

 

[Seasonone]

Mustang, Challenger, G8, Cobalt SS, Corvette (zo6 and ZR1)...

Yeah, boring overpriced crap cars

hahahah you did nothing to disprove his point. :lol:


I really hope they don't get the money though, they can't pay it back and the economy isn't the reason they are in such a bad space. Saying "we're going to make hybrids" isn't enough. Work a deal with the UAW and get it on paper than come back, until than it's a bunch of promises from 3 companies who haven't been in touch with the public for 40 years.

 

[MattD1zzl3]

Oh yea, and a 240SX is just the pinnicle of driving pleasure, i'd rather have a mustang.

 

[Spectre]

Mustang, Challenger, G8, Cobalt SS, Corvette (zo6 and ZR1)...

Yeah, boring overpriced crap cars

Aveo
Impala
G5
G6
Equinox
Traverse
Trailblazer
Malibu (it's not bad, but GM won't give you real nav at any price)

I can go on...

 

[Seasonone]

Oh yea, and a 240SX is just the pinnicle of driving pleasure, i'd rather have a mustang.

Good for you, but my 15 year old has embarrassed every mustang at every auto-x (hell Type R Integras constantly rape v8 rustangs) I have been to not to mention can easily walk them in all strait line tests from full stop to a free way pull so ....

So have fun with your slow, boring, overpriced, crap car the rest of the automotive world will continue to pass you by.

 

[TC]

I hope the Big Three are taking this as seriously as it appears. They can't just keep on doing the same old thing and expect to keep a job. Because if they screw this up, they probably won't get another chance. I like GM's idea of downsizing. That seems to be the best option. Try their hand at quality over quantity, for the first time in a long time. Hope they succeed.

Because I still want a Solstice Coupe.

 

[LeVeL]

Mustang, Challenger, G8, Cobalt SS, Corvette (zo6 and ZR1)...

Yeah, boring overpriced crap cars

dude, they make so much absolute garbage that its not even funny they are going out of business; you named 5 cars from three HUGE ranges of models :lol:

 

[Topgearfanatic]

Did I read that right? The boss man of GM salary will be one dollar, because I am very very tired. Oh, and good luck to them selling your jets, let alone you can't sell your own company's cars. Also, lol at Chrysler's "Providing Cars and Trucks that People Want to Buy" Section, proving they are indeed providing cars that people don't want to buy.

 

[MadCat360]

Chrysler: no one would miss it I guess...

They still make cars?

Did I read that right? The boss man of GM salary will be one dollar, because I am very very tired.

Yes. Many companies do this to prove that "no expense is spared" just for the sake of image. The bosses still get truckloads of money through various means, but not a salary.

 

[Ezbok58a]

Good for you, but my 15 year old has embarrassed every mustang at every auto-x (hell Type R Integras constantly rape v8 rustangs) I have been to not to mention can easily walk them in all strait line tests from full stop to a free way pull so ....

So have fun with your slow, boring, overpriced, crap car the rest of the automotive world will continue to pass you by.

Are you sure you're not the 15 year old? Cause you sound like a child.

Mustang GT isn't slow, isn't boring, isn't overpriced and isn't crap.

dude, they make so much absolute garbage that its not even funny they are going out of business; you named 5 cars from three HUGE ranges of models :lol:

I'm not denying that they make their fair share of crap, but not all of their models are crap...same thing with overpriced.

Impala for one, despite what you think of it is actually selling to people other than Rental Fleets and Police departments.

So while some may think of it as 'crap' it actually isn't cause it actually brings in Money.

Edge isn't crap, Fusion isn't crap, Focus isn't crap...(its cheap but not crap)

Taurus/Taurus X/Flex? Those are crap, they can't give them away.



I've driven Audi's that weren't put together as well as my Car (new Audi's none the less)....

 

[djdorifto]

Are you sure you're not the 15 year old? Cause you sound like a child.

Mustang GT isn't slow, isn't boring, isn't overpriced and isn't crap.

It is slow, there was a SC one at the last track event (it was a road course) held by my car club. It had redone suspension work, attended scca events, he even ran this course before. I never ran the course and still beat him by 3-4 seconds on my fairly stock s2000...

 

[Ezbok58a]

It is slow, there was a SC one at the last track event (it was a road course) held by my car club. It had redone suspension work, attended scca events, he even ran this course before. I never ran the course and still beat him by 3-4 seconds on my fairly stock s2000...

That's the driver's fault, not the car's.

I've seen stock GTs run autocross and keep a few tenths off of Lotus Elise's.

 

[Spectre]

Stock? I doubt it. Had to have subframe connectors at the least, because otherwise most Mustangs are flexi-flyers.

 

[MadCat360]

That's the driver's fault, not the car's.

Yeah. You guys seriously can't comprehend how much driver skill is involved. In 1-make spec series I've seen people (including myself) top the time sheets in practice and a mere day or so later they qualify dead last.

It's just mind blowing how much difference there can be between two different drivers driving two different cars, regardless of which is better. Even if the GT is a faster car, the difference between a very good driver and a great one is definitely worth 3-4 seconds on a decent sized track.

This is why Grand Prix drivers get paid so much.

 

[Seasonone]

That's the driver's fault, not the car's.

I've seen stock GTs run autocross and keep a few tenths off of Lotus Elise's.

Riiiiiiiight. So the 20+ that have constantly ran shit times were all driver error? You have obviously never driven one spirited, which of course isn't a shock from a Mustang defender. I on the other hand HAVE driven a GT at an auto-x and it was garbage.

"OMG somebody doesn't like an American car time to blindly defend it because I like them!!!!

Oh and no GT will ever come within a few 1/10ths of an Elise.

Yeah. You guys seriously can't comprehend how much driver skill is involved.

How many track days have you been on again?

 

[BerserkerCatSplat]

Gee, it sure is fanboy in here.

 

[Dogbert]

Oh yea, and a 240SX is just the pinnicle of driving pleasure, i'd rather have a mustang.

I'd rather be able to turn the wheel and have the car react.