Obama's Auto Task Force to arrive in Detroit today, drive GM's Volt
General Motors and Chrysler representatives have just gone through two weeks with President Obama's newly-formed automotive task force, and now it's time for the political types to gain some insight into automotive production. The task force is headed to Detroit this morning to get a crash course on the intricacies that go into making a car or truck, including meetings with automakers and the United Auto Workers. The meetings carry a lot of weight considering the fact that GM and Chrysler have stated that they will need more federal loans by the end of the month to keep out of bankruptcy. During their tour of the city, task force members will get a test drive in a Chevrolet Volt prototype and tour the Dodge Ram truck plant.
The task force's job is to study the automaker's plans and determine if additional funds will lead to future viability or if the government is simply throwing good money after bad. Treasury Secretary Timothy Geithner said that he's looking to see if the restructuring efforts show that the automakers are "on a path to long-term viability without government support." GM, which has already received $13.4 billion in loans, is seeking up to an additional $16.6 billion and Chrysler is looking for an additional $5 billion in addition to the $4 billion it has already received.
[Source: Automotive News subs req'd; Associated Press | Image: Bill Pugliano/Getty]
Reader Comments (Page 1 of 4)
Luis 8:03AM (3/09/2009)
No more tax dollars unless they shape up in bankruptcy court.
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Mazda FTW! 8:05AM (3/09/2009)
Are we talking about the banks or about the car-makers?
Mr.Oak 9:10AM (3/09/2009)
Luis: They should be given at least half the chance that we gave to the thieves on Wall Street.
Luis 9:39AM (3/09/2009)
BOTH! They all need to shape up and restructure. The failing banks (AIG, Citi) need to be nationalized (short-term) and GM/Chrysler need to go into Ch. 11.
If the banks go under the worldwide economy will be destroyed. If Chrysler goes under...well, it won't be as bad as if AIG and Citi go under. GM just needs to have court protection to shutter failing brands and re-write contracts.
refugee7 10:01AM (3/09/2009)
AIG is not a bank.
jamie 10:55AM (3/09/2009)
"Are we talking about the banks or about the car-makers?"
- Mazda FTW!
Neither darling, we're talking about the Federal government first. They are the bums who created the problem in the first place. Remember when the USA was the richest nation on earth? Well, thanks to you know who, we're now the most indebted nation ob earth to the tune of $65 trillion!
We owe; we owe; so it's off to work we go!
Chris 11:17AM (3/09/2009)
We became the richest nation on earth after massive gov't spending of the 30's and 40's! Relax. Geez.
caddy-v 12:17PM (3/09/2009)
Chris,
So by your logic if I spend all my money, my children's, and grandchildren's and then some, I'll become the richest man in my town?
TFinn 8:18AM (3/09/2009)
GM shows of the Volt and advanced technologies, Chrysler shows off its...trucks. Perfect.
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Gary Lowe 8:32AM (3/09/2009)
I think I've already seen the light at the end of the tunnel...or was that Vietnam?
Mission accomplished....bring them on,...or was that Iraq?
Longest sob story in Corporate Spin history....oh, that was GM
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Sea Urchin 8:35AM (3/09/2009)
Nothing says GREAT CAR like a car that needs to be promoted by the governor.
That picture should tell you everything, the Governonor of the state with CFO with signs that read Charged Up and such, promoting a car with will get a 25% tax deduction (redistribution of wealth).
Go GM, Government Motors.
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Mr.Oak 9:12AM (3/09/2009)
Dude, I try to get a handle on who you are and you continue to baffle me with your idiocy.
Sea Urchin 9:18AM (3/09/2009)
Do you think that its OK to move a product by promoting it with politicians.
If Dell used Jimmy Carter and Bill Clinton or Bush for that matter as a pitch man, would that be A OK with Mr. Oak?
jamie 11:32AM (3/09/2009)
@Mr Oak
There is absolutely nothing wrong with the number of brands GM has. The problem is and always has been since the Sloan era "What should each brand deliver?" No one at GM apparently has got the cajones to do what is necessary to turn around the sinking ship.
If each brand was pulling its own weight then:
Cadillac would be selling 300,000 units annually
Buick would be selling 300,000 units annually
Pontiac would be selling 300,000 units annually
Saturn would be selling 300,000 units annually
GMC would be selling 300,000 units annually
Chevrolet would be selling 2,400,000 units annually
Saab would be selling 300,000 units annually
Opel would be selling 1,200,000 units annually
Holden would be selling 300,000 units annually
Daewoo would be selling 300,000 units annually
Add it up, and that's 6 million vehicles annually (excluding Wuling in China).
GM has mismanaged its brands ever since Sloan retired. They have cherry-picked trucks and SUVs because they were unable to compete with Toyota in the car domain mainly due to legacy costs. Lutz had a tendency to cherry-pick low volume halo cars that continued the cycle, but they did draw in new customers. Fair trade off, I suppose.
Union wages are not the problem either. The actual cost of wages included in a vehicle is small (under 10%). Benefits have been the issue and most of that has been addressed and rectified today.
GM can and should be aligning all of its brands to produce something exiting and different without the so called brand engineering efforts that are so maligned. It is possible to create many different cars on the same platform, and indeed in the same body shell, without compromising quality or customer recognition and appreciation levels.
Eg. OPEL INSIGNIA has 9 engines available for European consumption (a bit extravagant methinks, but that's okay).
BUICK REGAL should be based on the Opel Insignia with a 3.0L DI Supercharged engine, AWD, and luxury trim
PONTIAC GRAND PRIX should be based on the Opel Insignia with a 2.0L DI Turbocharged engine and sport trim
CHEVROLET MALIBU should be based on the Opel Insignia with a 3.0L DI engine as Saturn upgrade; could also offer SS and LS trim levels
SATURN AURA should be based on the Opel Insignia with a 2.0L DI engine as an entry level automobile
Every vehicle is different; but every vehicle is based on the same car.
What's so hard about that? This is not rocket science guys.
Frylock350 11:39AM (3/09/2009)
@Jamie,
The problem is that the Pontiac should be RWD :)
Coolio 1:09PM (3/09/2009)
Hey, Great Idea !
Let's let the Domestic 3 go bankrupt, and then let's all feel safe and secure driving our Honda's and Toyota's to work. Then, in a few years, we can drive our Chinese-made cars to work, shopping, on holiday, whatever.
Read this:
http://www.cnn.com/2009/POLITICS/03/09/us.navy.china/index.html
If you wish for the D3 to go belly up, THINK ABOUT THIS FOR A MINUTE !
Clay Garland 12:50PM (3/09/2009)
Jennifer Granholm is one of the worst things to happen to MIchigan in years. About a year ago, she bowed to union pressure, and told Toyota to get packing when they wanted to build a non-union factory in Flint.
Kitko 8:37AM (3/09/2009)
Lets face it, Volt will not save GM, it was developed to save fuel when a gallon sold for $4. GM's jumping on a green bandwagon hype in a vain hope it will make a difference. It will not.
1. Volt will not hit dealers' any time soon - end of 2010??? That's almost two years.
2. Volt will not be a mass-market car - it will not sell in Civic/Corolla numbers for years to come
3. In relation to point 2 - it will not be exactly cheap.
GM needs a car like Corolla or Civic or Mazda 3. Not Volt. I just hope that the task force will see through the GM mask of low voltage insincerity.
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Sea Urchin 8:53AM (3/09/2009)
That should be Cruze, but according to Motor Trend Cruze will be 3 inches longer than Cobalt, which will make it one of the largest cars in the class, which will make it less fuel efficient than competition. And According to GM, it will be priced 2K above competition.
Cruze+$2,000+Volt+$40,000-$10,000 welfare check from government=Bankruptcy
Frylock350 9:12AM (3/09/2009)
@Sea Urchin,
Cobalt is physically smaller than most of its competition. Cruze needed to be a bit longer to be class competitive. It will be very fuel efficient with the base drivetrain ( 1.4T and 6sp auto) which is supposed to deliver 40+ mpg on the highway.