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webby4x4
Forum Admin, Magazine Editor
Rock Star
Posts:2375
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| 01/26/2007 3:08 PM |
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What do you all think of this???
http://www.4x4review.com/news/GM-Allison-option.asp
Yeesh... |
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Rick Webster
Editor, 4X4REVIEW.COM - A Tork Media, Inc. Publication
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'74 FJ40 Land Cruiser
"Measure once, cut twice" |
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ChevyMan0784
Lift & Lockers
Posts:699
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| 01/26/2007 8:04 PM |
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| Well....What I get out of it is that GM is deciding on wheather or not they are going to put Allison Transmission up for sale to the highest bidder. To me that kind of spells disaster (serious underlying debt), or just a potential bad move. I know that some Dodges are now coming with Allisons(I have heard that from a few folks now) and Dodge is running a Cummins (owned now by Ford)...What I am getting at is since other vehicle manufactures have decided to by and sell Allisons in their vehicles, it would be wise to keep the company as opposed to sell. Reasons being this: If you have some controll over another competitor, then why would you give that up? Also, Allison helps GM hold ground in the military world (which they have dominated for some time now). I dont believe it would be wise to cut off your BEST customer that way, and make them go through different avenues. You are liable to lose that customer (the military). So overall, I would (on a personal opinion level) say that this would be a seriously bad move on behalf of GM. Now to give some support to my favorite General... we all know that they, as well as the rest of the industry, have been hit seriously hard. Wheather that is due to more stringent regulations, or poor fiscal sales, or oil prices, or even steel (metal) prices. GM is more than likely sitting on a large amount of debt, and if we dont want to see our favorite engines dissapear, then it may be a good idea for GM to part with Allison. This way they can reinvest that money back into GM's core production. Just because of the fact that GM is so large, I dont think anyone should really want them to fall out. Not only would GM's subsideraries and sister companies fall, but Toyota would feel a large hit. This is because GM and Toyota have one of industries largest Co-Ops. Don't believe me? Sit a Tacoma next to a Colorado or Canyon, or the new Tundra next to a Silverado. Then check out some of the engine and chassis components. A good amount of those parts come out of the same molds. They may be competitors, but they compliment each other in a good way. Ok, I will get off my freakin soapbox!!! |
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gimmie fuel gimmie fire gimmie that which I desire-James Hetfield
*Never give an Irish man good cause for revenge.
*Guns dont kill people, but they sure help!!
*98% OF AMERICANS SAY 'OH S**t' BEFORE GOING IN THE DITCH ON A ICEY ROAD.
THE OTHER 2% ARE FROM ALASKA, AND THEY SAY, 'HOLD MY BEER AND WATCH THIS |
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ChevyMan0784
Lift & Lockers
Posts:699
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| 01/28/2007 8:35 PM |
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| Shoot! Ain't nobody replied to my response!! No controversy here??? |
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gimmie fuel gimmie fire gimmie that which I desire-James Hetfield
*Never give an Irish man good cause for revenge.
*Guns dont kill people, but they sure help!!
*98% OF AMERICANS SAY 'OH S**t' BEFORE GOING IN THE DITCH ON A ICEY ROAD.
THE OTHER 2% ARE FROM ALASKA, AND THEY SAY, 'HOLD MY BEER AND WATCH THIS |
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webby4x4
Forum Admin, Magazine Editor
Rock Star
Posts:2375
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| 01/29/2007 7:00 AM |
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too much to digest for my simple brain. ;)
In all seriousness though, here are my comments:
From what I've gathered, speaking with other people, reading financial reports, watching the news, etc., it's really about three things:
1) Relieving debt (and lot's of it)
2) Un-Diversifying - getting back to the core business of just building cars, which explains why they recently spun off GMAC (Their lending / leasing company), along with a few other small businesses.
3) Satisfying the shareholders, who are not happy with the stocks performance given the decline in sales.
For me, being somewhat of a GM fan (over the other Detroit 3 (formerly the "big 3")), I have mixed feelings about this.
While it was nice to use statements such as "they're the largest auto manufacturing company in the world" and "They're the most diversified auto manufacturer in the world" while arguing that GM has a great set of vehicles, I feel it's really important for them to get competitive again. Lets face it, Toyota is the world's largest auto manufacturer, and they're nipping at the heels of the Detroit 3 when it comes to full-size trucks now! That's a scary place to be if you (GM, Ford, Dodge) are hanging your hat on your truck sales.
So... Maybe it's a good thing for them to get focused again and get back to the business of building high quality cars and trucks.
Only time will tell though.
Rick |
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Rick Webster
Editor, 4X4REVIEW.COM - A Tork Media, Inc. Publication
- - - - - - - - - - - - - - - - - - - - -
'74 FJ40 Land Cruiser
"Measure once, cut twice" |
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ChevyMan0784
Lift & Lockers
Posts:699
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| 01/29/2007 9:03 AM |
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| Absolutely, I agree that is time for competition. |
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gimmie fuel gimmie fire gimmie that which I desire-James Hetfield
*Never give an Irish man good cause for revenge.
*Guns dont kill people, but they sure help!!
*98% OF AMERICANS SAY 'OH S**t' BEFORE GOING IN THE DITCH ON A ICEY ROAD.
THE OTHER 2% ARE FROM ALASKA, AND THEY SAY, 'HOLD MY BEER AND WATCH THIS |
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SnoMan
Lift & Lockers
Posts:943
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| 01/29/2007 9:24 AM |
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| It is easy to figure out why they are doing it. They are drowning in red ink and they need to raise capital plus it makes it easier for them to force concessions from its workers later or switch to another tranny supplier. Labor costs are killing GM. |
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