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Chevrolet Volt
GM isn't going to let a little thing like a lack of money prevent the Volt from coming to market in 2010

General Motors has been in a downward spiral all year with lagging sales and losses in the billions. GM and its cross town rival, Chrysler, asked Congress for monetary assistance to stave off bankruptcy by the end of the year. In the end, the Senate failed to hand over even $14 billion USD to the two struggling Detroit giants.

Now as the White House mulls what plan it will present to help GM and Chrysler stay in business during 2009, GM is stating that it will bring the Chevrolet Volt to market no matter what. This confidence in the Volt program comes despite that fact that GM announced yesterday that it would halt the production on a new engine assembly plant which will produce the 1.4-liter gasoline engine/generator for the vehicle.

Despite the setback with the engine assembly plant, billions of dollars in losses, and a production schedule that leaves little room for error, GM is still committed to bring the Volt -- and the Chevrolet Cruze -- to market by the end of 2010 as it has always stated.

If the engine assembly plant is unable to be completed in time to get the production Chevrolet Volt and Cruze out the door in 2010, GM will be forced to rely on one of its overseas facilities to produce the engine according to the Wall Street Journal. Interestingly enough, the Chevrolet Cruze is already available in overseas markets like South Korea albeit with a 1.6-liter four-cylinder engine -- two years ahead of the car’s North American launch.

"Everything that involves heavy cash outlays obviously is under review," said GM spokeswoman Sharon Basel on Wednesday. "Our intent is to still go forward with a new facility bringing that engine to Flint, Michigan."

"Although we are temporarily absolutely stopping all work on everything, the Volt will be out as originally scheduled," added one GM executive.

GM is banking on the Volt to bring it some of the same positive press that has been bestowed upon the Toyota Prius. However, the Prius and its rival, the Honda Insight, have base prices below the $24,000 mark. The Volt, however, will be priced near or will surpass the $40,000 mark before a $7,500 tax credit.



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RE: Economical not just technological
By Dwayno on 12/18/2008 7:30:07 PM , Rating: 2
quote:
Credit markets were fine throughout most of 2007. Compare GM, Ford, and Toyota earnings statements from 2007. Any other excuses?

What makes you think that the credit market "only" collapsed in 2008?! This was a credit market bubble. It burst in 2008, but it's been weak for a very long time since what was inflating it was bad lending practices. The availability of easy credit affected every aspect of business, including cars. The same people that shouldn't have qualified for a mortgage were also qualifing for a new SUV/truck purchase because they qualified for that mortgage (collateral).


RE: Economical not just technological
By Ringold on 12/18/2008 9:06:41 PM , Rating: 2
You supported my point. People were able to get cars and trucks throughout most of 2007. Thus, what is GM's excuse for still losing tons of cash in 2007?

But you can go back to 2006 and 2005, too.

http://finance.yahoo.com/q/is?s=GM&annual

Over the same time period, Toyota made money.

http://finance.yahoo.com/q/is?s=TM&annual

The OP I responded to made it sound like, oh, poor GM, the credit crisis crushed them. No, sorry, long established business practices have put them where they are now.


RE: Economical not just technological
By cokbun on 12/18/08, Rating: 0
By hashish2020 on 12/22/2008 3:22:56 AM , Rating: 2
Yea, Toyota made money. Now it is losing money.

Guess why? The yen dropped from it's artificially low 110-120 per dollar range to the level around 90 that reflects real life now. The good thing about this credit problem? It is forcing Japan, Europe, and China (the "leech" countries who made their wealth on keeping their currencies weak and exporting to us) decide to take one of two paths---buy up more and more worthless treasuries, or let their currencies appreciate to what they should be.


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