Why GM Is Ready to Rebound

Reader Comments
Back to blog

On June 1, General Motors proposed a new pension plan aimed at reducing their pension liability by 26 billion dollars. The pension plan changes will affect approximately 42,000 qualified U.S. GM retirees and surviving beneficiaries. A helpful guide that explains plan changes can be found at http://gmpensionbuyout.info. Since the plan offers either a lump-sum payment or a recurring monthly pension benefit, it is highly suggested that a qualified financial advisor be consulted prior to any final decisions in regard to pension plan option changes. The deadline for pensioners to make a decision is scheduled for July 20, 2012.

Jennifar of AK 2:32AM June 16, 2012

I do not hear any commentary about snob appeal. Too many Americans are still suffering from an unconscious second class state of mind when comparing ourselves with other nations. It is as though we must have a connection with another country before we can feel our full worth - hence hyphenated national identify designations (Italian- American, etc).
It seems more fashionable to have a foreign car than to have a domestic model as much if not more for the snob appeal than for the actual superiority of the foreign made product although they may be better in some cases. After all didn't we buy foreign stuff in huge amounts when it was clearly junk?
Here is one more. Despite the current recession and the admitted quality of current new American cars, why are most of us still buying foreign cars? Other nations are turning to their own products to help home industry and business. What are we doing to help our own recover? Can someone help me understand this?

Joseph McCoy of TN 11:18AM December 18, 2009

If GM provided all repairs on your car for the life of your GM loan. Not just power train but the whole damn car/truck. Once your loan is up warranty is over. You'll have to pay for the maintenance ( oil, wiper blades etc.) but GM will ensure you're car is running 24/7.
Now would you buy?
Would you trade in that Honda or Toyota?

Read this Fritz of FL 5:52PM October 12, 2009

I don't belong to the UAW that helped elect Comrade O. I've always bought a GM vehicle and never owned anything else. If you have a company and run it into the ground then it should die and not have the UAW vote for me buddie bailout. Stealing tax payers money to save a company run by people who can't supply what the market wants should not be allowed. That's the world of capitalism. The "C" word. But I'm sure someone wants to get re-elected. Government Motors . . . Ha Ha, I love it! Maybe Gov Motors can produce a car that sings the Comrade O song to indoctrinate children like the public schools do. That car only comes in red. And you can buy the car even if you are not a US citizen and not elegible to run for president.
I currently own a 2000 Chevy pickup. It's a truck for God sakes and it's not built very well at all. It's a big tin can. Check out the emergency brake system design too for example. The engine keeps running well, thank God. Tranny is starting to slip and it's got less than 130K on it. It's a truck! What's up wif dat? Gee, can I say God without offending any Comrade O liberals? God God God God God! I'm thinking of changing my last name to God and becoming a school teacher.
I guess when you have to pay all those union benifits and for people who aren't even working anymore, you have to cut corners everywhere on your product and charge way too much for it. Bailouts and unfair competition from our own gov to foreign car makers always kept me from buying them. I don't think I'll ever buy another GM product again after watching the communist party steal my tax dollars.
Well, I'm going to open a company and run it into the ground and get a $50 billion bailout and retire! Maybe two companies! Whoo Hoo. Where's my check! Haaaaaaaaaaaaaaaaa!!!!

Big D of TX 12:06AM October 08, 2009

Dont forget americans have bailed out the Toyotas Nissans and Hondas of the world for years with cash and other incentives, amounting to billion$ to locate their plants in the U.S. Their own home governments were doing the same. All this to compete against other americans. I'll agree Big Three quality was'nt up to snuff in the 80's and most of the 90's but it has been the last decade. The quality in most cases is just as good and the prices are more competetive then are the Japanese brands. The Korean brands are another story. I question how they can sell their cars so cheap here. Our Kia dealer has given a "free" entry level model away when you purchase a more expensive model. How can this add up to profitability? My guess is if the Koreans cant sell it here, they just dump it here. There use to be anti-dumping laws in this country and if so they are not being inforced. It burns me up to think that cash for clunkers gave them an even more unfair advantage. I find it funny that americans hate the U.S. auto companies for getting bailouts when they have been doing the same for foriegn companies for years.

Allen Yates of IL 12:58PM October 07, 2009

... if you've never owned both? In my family GM lost our business in the 80's. 2 stations wagons, 2 blazers, 1 Cadillac. They were all pieces of crap. Around 2000 our relatives were selling their '95 Impala for a good price and my folks thought they'd give ol' GM another go. Well, mom still drives that car because she's too cheap to buy a new one. But it's a POC as well.
Tell ya what, our '84 Toyota pickup is still running. Never rebuilt, never had gasket seals changed, pretty sure it's got the original timing belt.
Spend enough money and you can keep anything running forever. My choice is to spend more up front for a car that is going to start and run when you need it to. I don't like spending time at the auto repair shop.
I'll look at GM again when they come out with the Volt, until then I'm happy with my '95 4Runner with only 150,000 miles on it. Might also consider a Dodge truck with a Cummins engine (happy with my Cummins-powered motor home).
As for leasing vs buying, by all means lease any maintenance nightmare brand. This is especially true if you're a Realtor or other professional who can write off your vehicle expense. However, your best bet for long term finances is to buy and hold a well designed and built vehicle that will last you for years and years. I paid off my '95 4Runner LONG, LONG ago. No car payment, no financed interest, and if you average out all the repairs and oil changes over the years I'll put up my payments for the last 14 years against any lease of any vehicle(s) over that period. Sure, you get a new vehicle every couple/few years, but I have instead taken vacations and saved a lot of money in my retirement accounts instead of giving it to the finance companies. Stop feeding the beasts for goodness sake!

Erik of TX 10:56AM September 15, 2009

GM needs to take some lessons from BMW -
BMW knows how to make a car that lasts by NOT replacing steel Washers/Nuts/Bolts with plastic ones to "improve the bottom line"
BMW vehicles stay together, don't rattle, shimmy, or shake after driving them off the lot. I've had mine for 6 years now and it is worth over $15K. Drives tight and as smooth as the day I purchased it. Retains aprox. 30% of the original market price.
My wife's newer American made vehicle is rusting, rattling, falling apart, and constantly in need of some new repair that 'is no longer under warranty'. Mind you, it has 20,000 miles less than the BMW. However, the BlueBook is about 10% of the 2006 list price. Three yers old, falling apart, and only worth 10% of what was oiginally paid for the vehicle to begin with. Yes, we are sadly upside down in our American made vehicle.
GM is all about the bottom line, not about quality.
If you do not believe it, drive a BMW for yourself and find out..
Once you experience the ultimate driving machine, you will never want to drive an American piece of car ever again ~
When traveling on business, I refuse any American brand rental car; to which the rental company smiles and easily complies with... Why you say? Because everyone already knows, American made vehicles are junk.
Wake up America! It is not about you, it is about the investor on Wall Street.

Bradford Michael of AZ 12:04AM September 15, 2009

Look up Bob Lutz on wikipedia and look at the long line of losing cars he built.
One quote "When Lutz became chairman of GM North American development in 2001 one of the first things he stated was that his new 500 hp car was going to save General Motors.".
Lutz is an example of how GM lost its way and why it failed. Rather than being GM's savior, his return would be as GM's undertaker.

Tony Costello of IL 7:17PM September 14, 2009

I have owned GM vehicles since I was 18. I have owned Fords too. GM hands down has always had a DURABLE product that lasts a long time. Case in point: I have 2 GM vehicles I drive on a daily basis right now. 1 has just over 200,000 and another is approaching 300,000. My neighbor just put a transmission in his GMC 1/2 ton after 325,000. I think what really upset people about GM product is fit and finish, but that has come light years from where it was in the 80's. What they build now is clearly as good or better than the Asian rivals. And the safety factor - Remember Force = Mass X Acceleration. It won't be long before we hear of some micro-car tradgedies as those micro size trash cans become more popular and go up against my cars with a mass 5-6 times that.

Mr. K of CA 7:35AM September 14, 2009

Comparing GM vehicles to Japanese models is like comparing steel drums to tin cans. Being a passenger in a japanese car (i would never own one) makes me feel insecure that if an accident should occur it would pulverize the car, or a strong wind could move us off our path, and, when exiting from a japanese car, upon closing its doors, the sound it makes confirms my feelings that the car sounds like a damm tin can. GM makes superior quality over any japanese company that sells for bargain prices.

j 3:44PM September 12, 2009