GMC Denali

[Chris P.]

This morning I was on my way to Arnheim to the De Bassist HQ. First I saw the crashed airplane of Turkish Air which came down last week. Very impressive... In a bad way.


But an hour later my rear view mirror was showing a very big black car wanting to take me over. Of course I gave way and I saw it was a very big GMC SUV. I never saw that one earlier in Holland.

The back said: 'GMC Denali'. I was thinking about GM and still making this big trucks. Has someone played with this badge? Shouldn't it read: 'GMC Denial'? 

[Dave W]

I don't think they're in denial anymore.

The GMC brand will very likely be scrapped by GM -- if GM survives at all.

[Pilgrim]

I've been thinking the same thing - WHY is GM even considering keeping GMC?  When I was selling Chevys in 1979-80, we occasionally got new Chevy pickups with GMC logos on them. There hasn't been any difference between those lines at the consumer level in 30 years. The FIRST decision I would have made - and it would have been earlier than last year - would have been to drop the GMC brand and make all trucks Chevrolets - and drop all duplicates between those lines.

Frankly, the deeper GM gets the more I suspect they'll have to go bankrupt, but hopefully but in such a fashion that they can re-organize instead of being dismantled.  I wouldn't be surprised if they emerged with just two brands - Chevrolet and X...with Chevy being their leading sales line in the US, and X being whatever line sells best overseas.  Right now that looks like Buick from what I've heard.

I wouldn't like that - I had a '66 GTO and Pontiac is a line I have a long-time affinity for - but them's the breaks.

[gweimer]

I hear they may kill off Saturn, too.  Pity.  I've loved all the Saturns I've had.  We've had 2 (still have the Vue) and both kids have 2001 SL-2s, which they love.

[Lightyear]

I thought that Saturn was as bright a spot as any they had - they actually seem to do well here in Houston - tons of the new little SUV's all over town.

The news I hear today is that their own internal audit says that bankruptcy is most likely the only option.  Probably the best solution - restructure their debt and break the money sucking deal with the union.  It will hurt in the short run but not as much as Uncle Sugar thowing billions at a no win situation.

[Pilgrim]

One more thought - after reflection, there's room for one more brand at GM - Cadillac.  That would give GM an everyday brand (Chevy) and a luxury brand.  The luxury brands are going to do OK long-term.

[Lightyear]

I agree, Honda has Acura and Toyota has Lexus - makes perfect sense - if they pull it out.

One thing I've thought about a reworked GM was to make the it employee owned - you've got a stake in every vehicle off of the line. Better than what they have been doing - just a thought.

[Dave W]

Hard to say what the future holds. There's always a possibility that another non-US automaker could buy one or more of the brands.

I understand that Buick and Opel are still strong in some markets. Cadillac isn't, so if there's a bankruptcy, I'd guess Cadillac is more likely to be gone (along with Pontiac, GMC and Saturn).

[Pilgrim]

Hard to say what the future holds. There's always a possibility that another non-US automaker could buy one or more of the brands.

I understand that Buick and Opel are still strong in some markets. Cadillac isn't, so if there's a bankruptcy, I'd guess Cadillac is more likely to be gone (along with Pontiac, GMC and Saturn).

Makes sense.  At some point you simply go with what sells.

[Basvarken]

I think Chris is talking about the denial of the environmental issue...
not about economical problems...

[Chris P.]

Thanks Rob:) You're right. But this discussion is interesting too...

[Pilgrim]

I think Chris is talking about the denial of the environmental issue...
not about economical problems...

IMO the reason large SUVs are not selling has little if anything to do with environmental issues.  It's the economy:  (1) They cost a lot;  (2) Gas has been going up and down, and will certainly go up again, and (3) Right now people are understandably reluctant to cough up $40,000 or more for a GM product that might be an orphan in less than 90 days.

As for the environmental issue: gasoline is legal to use, and I'm paying for mine.  As long as I pay the bill, I'll drive what I want to and feed it the gas it requires.  I suspect a lot of people feel the same way.

[Dave W]

GM's public begging and threatening to file bankruptcy is likely to become a self-fulfilling prophecy.

[gweimer]

You know, I seem to recall back in 2002, when everyone was offering 0% financing, that the industry analysts called it the beginning of the end, and that the auto industry would pay dearly for doing it.

[OldManC]

Bankruptcy would be the best thing for GM right now. They need to change their business model to be able to survive in this day and age. All the legacy costs and redundancies built into their labor contracts have kept them from being truly competitive for years. Bankruptcy worked for many of the airlines, and while that's apples and oranges to a degree, I think the alternative, i.e. continuing to subsidize GM and Chrysler with our future (taxed) earnings, is an exercise in futility.

I've driven GM cars and SUVs for almost 30 years. I've owned a few other marks too, but I've always been a fan of quite a few GM designs. I'd still rather drive a '67 RS Camaro than any other vehicle. (OK, I really want a new Jeep Wrangler too. I miss my CJ7!) That being said, I'd rather the whole company sank than see my childrens' future mortgaged so that GM can survive.

I hope this wasn't too political.