GM announced today they are eliminating their High Performance Vehicle Operations (the equivalent of Ford’s SVT division). Automotive News reports that GM will re-deploy the units engineers to high-priority programs such as hybrid and fuel efficient vehicle development (shouldn’t they have done that about 7 years ago?). This move comes as part of GM’s revised plan to the US Treasury. The Plan is prompted by GM’s realization they will run out of cash come March without another handout from the US Government. GM is requesting another $9 Billion dollars on top of the $13.4 Billion it received last year under the Bush Administration’s Detroit bailout. GM is also asking for another $7.5 Billion line of credit in case things get worse. Which they will.
Also reported as part of GM’s plan would be nearly 50,000 in layoffs, closing of 5 manufacturing and assembly plants in the next three years, and eliminating the Saturn division.
Here is FordMuscle’s view:
There’s an old saying, “Everyone is a capitalist on the way up and a socialist on the way down.” While GM’s circumstances are tragic, we need to let capitalism take its course. Propping up GM hurts the competitors who aren’t asking for handouts. It makes the playing field un-level. Ford is the fittest, and when resources are scarce, the fittest shall survive and the weak potentially go extinct. Ford stands to increase its market share dramatically if GM (and Chrysler) were allowed to fail. By doing so Ford would be able to make more cars, hire more workers, and be a better competitor in the global automotive market. The US is better off with one strong company rather than three weak, government supported entities. No democratic government should pump $30 Billion of taxpayer money into a single company, let alone one that is otherwise destined to fail. It is a horrible investment of gigantic proportion. Look at it this way, the government could distribute $1 Million to
30,000 small and entrepreneurial businesses - sort of a Treasury backed Venture Capital effort -and just about be guaranteed of an economic turn around.
I have owned 2 Fords in my life, a 1950 Ford with a flathead V8 in it, and a 1965 Mustang with a 289 and a 4 speed. Both good cars. I have pretty much been a GM fan for most of my life, Suburbans and Corvettes, but that is ending now.
By RC. May 31st, 2009 at 5:03 pmMy next vehicle will most definitely be a Ford. I appreciate the fact that their management has had the vision and the balls to make the tough choices, and steer their company in the correct direction.
Have you driven a Ford lately?
I haven’t, but I soon will be.
As much as I hate to say it, if the domestic automakers cant compete they need to go.
Their management needs to grow a set and do those hard things that will make the company succeed or else go out of business. Union labor rates and the lack of productivity that goes along with the unions is unsustainable. Who gets 40.00 an hour to push a broom? Domestics also suffer from poor quality and dealer service although they have gotten better over the years. Just not as good as the imports. Everyone has known this for a long time and now it’s time to pay the piper.
GM may as well be going to Tony Soprano for the bailout. Even if they get all the money they need there will be so many strings attached it wont be the same company anymore.
Obama obviously wants GM to build battery operated vehicles and dump “gas guzzling SUV’s”.
However, nobody wants an econo-box unless gas is 4.00 a gallon so it doesnt take a genius to figure out what will have to happen next. He will have to change policy in order to drive gas prices up in order to get the demand.
Obama gets his vision of everyone driving “green” cars realized and helps a bad SUV building corporation see the evil of it’s ways.
One question you never hear though. What happens to all the batteries when these cars get junked? After all, batteries are toxic.
By Dave. April 13th, 2009 at 6:37 amAfter being a victim of not only one but 2 piece of crap Ford Mustangs. Both suffered electrical problems because of the known passenger side leak. The leak that Ford says doesn’t exist even though they have a Technical Service Bulletin that addresses the problem.
By Chris. March 20th, 2009 at 5:57 pmI took a 2006 Mustang as a replacement when the Better Business Bureau ordered Ford to take the 2005 Mustang back. I gave Ford the benefit of the doubt and figured, what was the chance that I would get another vehicle that was such a miserable piece of junk? I got fooled … the 2006 Mustang leaked as bad as the 2005 and had the added bonuse of numerous other strange failures.
I say let Ford and the other US car makers die.
Ford and the other US car makers don’t know the meaning of customer service let alone quality. I learned first hand what quality and service means to Ford Motor Company. It means when they produce a piece of crap car they will lie, cheat and do everything in their power to make the customer eat it. Thank you Ford Motor Company, you showed me that after all these years of buying “American”, I should have bought Japanese. My 3 Japanese Suzuki vehicles have had ZERO problems. Hell, Ford can’t even keep water out of the passenger compartment.
** Remember buy American … You know like the Mustang. ‘Cause with that German manufactured engine and French manufactured transmission it’s an AMERICAN car. Either that or a slapped together leaky piece of junk thrown together by Ford … I happen to know for a FACT that it’s a thrown together piece of junk. (So does the Better Business Bureau.)
Automakers have been screwing the American buyer for years, this is just there turn. Bye Bye GM
By Bill. February 27th, 2009 at 1:41 amNo offense but that was a completely idiotic movie. They treated it as a grassy knoll style theory.
By bassman97. February 23rd, 2009 at 7:52 pmDid everyone see the movie “Who Killed the Electric Car”?
Let GM die, they have been in bed with the oil companies more than Ford or Chrysler combined.
By Fastback68. February 23rd, 2009 at 10:25 am» the end of darwinism
By the end of darwinism. February 22nd, 2009 at 6:21 pmThe whole market is a mess, maybe 9.8 million cars sold this year. GM can never exist on a market like this. One wonders if Ford can. GM and Cerebus are zombies! They are dead. Cerebus will not bail out Chrysler. There is over 50% more production capacity than needed. I do feel for all who are losing jobs. Detroit and the state of Michigan are in a tail spin. Of course most everything is in the same pot. If the government is willing to give $30-40 billion a year for the next five years they may be able to completely nationalize the industry and save some manufacturing capacity ,but it will look nothing like it did.
By ranchero67. February 19th, 2009 at 2:40 pmDarnit, I’ll have to get my CTS-V and my G8 before they’re all spoken for…. sorry, ford doesnt make a tourning sedan. I need moredoors to go with my 64 Merc MoreDoor and my Bonneville SSEi.
By Slck64. February 19th, 2009 at 2:16 pmDo you guys mind if I republish the second graph?
By Robert Farago. February 19th, 2009 at 12:38 pmOk, who let the Chevy guy Randy on here? Randy, I’m sorry Ford doesn’t have to take handouts from us to make inferior products like GM. How can you possibly say, on a Ford forum, that Andre’s opinion, and the opinion of the man who wrote this article, is not the view of most? Read the banner at the top of the page “FORD MUSCLE”. I think anyone can guess which company we like just from being here. And I think EVERYONE should agree that the $9 billion should be invested in improving the lives of people running their own business. So, go find a Chevy forum, and complain about us to them. They seem to be the only ones who care.
By Chris. February 19th, 2009 at 9:39 amIf Ford ran out of money they should go extinct also - same thing applies. GM, and yes, ALL it’s employees have demonstrated they can’t compete. They - ALL the employees- union, boss, execs, got thiers while the getting was good, but sometime the party has to stop.
I have no inclination to have my money taken away to prop up people who make a product nobody wants to buy, and who demand pay & retirement benefits better than 90% of the people (taxpayers) they demand handouts from.
Make no mistake - these aren’t loans, they are handouts.
By Andre. February 19th, 2009 at 5:54 amspoken like a true a hole….when ford runs out of money and wants a handout i hope they fold up…your view is definitly not the view of most. after reading your commenst and never owning a ford looks like i never will either
By randy. February 19th, 2009 at 3:52 am