• Oct 24, 2008
Big Bob Lutz said that GM declaring bankruptcy is "out of the question." Of course, that was two years ago, when things like a $25 billion government loan would have sounded ludicrous. That was also before the auto industry mess got messier, and in order to stay true to those words today, GM is doing whatever it has to do to find money to stay in business. It heard Chrysler has an $11 billion piggy bank and a couple of jewels (Jeep and minivans) and GM said "Come here, girl! Lemme holla at you for a minute!"
Now GM is looking at its own international stable, and has its eye on China as a source of stopgap revenue for its North American operations. We've posted before on the fact that GM's international operations aren't doing too badly, and GM China sold 11.5 million vehicles last year -- more than any other manufacturer there. This year, it expects China sales volume to grow by 11- to 12-percent, and that means yuan in the bank.

Lutz said of the China move, "We do not rule out such a possibility under current conditions." These are hard times, but -- just like the good ones -- they're temporary, and GM just needs a little help to get to payday. Using money from one of your branches makes perfect sense to us. What doesn't make perfect sense is that China will get the Cruze the same time as Europe, in early '09, while we in the U.S. have to wait years in line for a car that we've been screaming for. Ah, GM, what are we going to do with you?

[Source: Gasgoo]


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    • 1 Second Ago
  • 14 Comments
      • 6 Years Ago
      The Chinese auto market is unlikely to see 12% growth this year. The countries growth is projected to be in the single digits this year, and that was before companies started to close factories and lay off workers.

      It isn't just the US and Europe that is seeing downturns. There's a ripple effect going on here, like the "Asian Contagion" of the 90s, only since it's the US and Europe affecting Asia instead of the reverse, the effects will be even bigger.
      • 6 Years Ago
      I don't care about the Cruze. I wan't to add the new Beat to my stable. The "Rick" needs to resign.
      • 6 Years Ago
      Aw, snaps! What I meant to say in my comments (second paragraph) was:

      "Like of legends of folk lore, GM is becoming nothing more than a "corporate vampire" with it's attempts to bleed dry anyone or anything to stay afloat."

      • 6 Years Ago
      In response to media questions, GM addressed repatriating foreign profits during last quarterly results conference call.

      Repatriating foreign profits can result in stiff taxes; however, I believe recent Fed 'bailout' packages supports tax relief for such moves, to GM's benefit.

      Foreign exchange plays into repatriation also.
        • 6 Years Ago
        Situations like this are 1 reason a future President should not punitively tax companies that "send jobs overseas".

        GM has to build vehicles in China to sell them there. It's Chinese law. It's a huge market. "The One" would tax GM for "sending jobs overseas."

        Even outside of China, you often have to build locally, due to currency fluctuations and to gain a political foothold. Punishing GM for building more Chevys in Korea, or Saabs in Sweden, only helps to weaken one of our larger manufacturing company's profitablity and therefore its support of the existing manufacturing and engineering jobs. Meanwhile, he'd give Toyota and Honda tax-breaks for things they already want to do, namely expand their presence here.
      • 6 Years Ago
      You guys suck at data. First you post that Toyota is going to sell 8.3 million cars this year as compared to 9.3 million last year. Of course you didn't mention (and frankly I bet you didn't know) that the 8.3 million figure was Toyota/Lexus/Scion (without Daihatsu and Hino) but the 9.3 million figure was all the brands, including Daihatsu and Hino (which account for 1+ million units).

      Now you erroneously say that " GM China sold 11.5 million vehicles last year", when the fact ios that that is more likely the WHOLE automotive sector in China. GM (+ Wuling) sold about 1 million cars in China last year.

      You need someone to check your stats, they suck.....
        • 6 Years Ago
        That's the problem with blogs. Fact checking, hence journalistic integrity, goes out the window.

        Too bad the rest of the media isn't far behind. Getting the story matters more than getting it right.
      john
      • 6 Years Ago
      US will get the Cruze last because of Federal crash regulations. The European standards are different and the US car will have to pass the new roof crush test.

      Lutz advocated suspended new safety regulations so that more European vehicles can come over here without going through the additional US testing which costs time and money.
      But what does GM know about testing cars? Don't blame GM, blame the government
        • 6 Years Ago
        @john
        Blame the government for having safety standards---great.


        But this could be a good thing for GM, if this car will be sold elsewhere for a year, this will allow GM to find bugs and fix them and bring a quality vehicle to the biggest market.
      • 6 Years Ago
      " . . . GM is doing whatever it has to do to find money to stay in business."

      Like of legends of folk lore, GM is becoming nothing more than a "corporate vampire" with it's attempts to bleed dry anyone or anything dry to stay afloat.

      If the overall situation wasn't so pitiful, it'd be laughable.
      • 6 Years Ago
      The U.S. auto maker says it sold 1.05 million vehicles in China last year -- more vehicles than any other companies.
      • 6 Years Ago
      Lol@GM. What else can you say or do at this point? GM=STUPID!
      • 6 Years Ago
      GM sold 11.5 million cars in China? That must be 1.15 million.
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