Auto vet designs GM renaissance

DETROIT: Before Bob Lutz joined General Motors Corp. as vice chairman of product development in 2001, the left brain, by most accounts, was dominating the right when it came to making cars.

[Bachi]

GM renaissance? Huh?

I guess by renaissance they mean a revival of the days when they built cars no one wanted, had out of control overhead and succumbed to union mandates.

As an investment this "blue chip" has been more volitile than an OTC.

[a voice]

Ross Pariot tried to to lend them his advice years ago!!

[George N]

Bachi wrote:

GM renaissance? Huh?
I guess by renaissance they mean a revival of the days when they built cars no one wanted, had out of control overhead and succumbed to union mandates.
As an investment this "blue chip" has been more volitile than an OTC.

The new Malibu is getting good reviews from magazines like "Car and Driver". They ordinarily favor foreign badges, and with good reason the past 15-20 years. The new Caddy CTS is also drawing favorable attention.

You are spot on about the union. The UAW has been defanged somewhat this last contract:
1. Plants can now close if needed. The absurd requirement that workers be paid in full whether working or not has been lifted. Plants that should have closed (making cars that should have been discontinued) were kept open. That made for less of a loss than just paying the workers 100% for doing nothing. That still meant losing money.
2. Newly hired janitors, forklift drivers, material handlers, etc. will be making $17 hr. tops instead of $27hr. for assemblers. This will mitigate the cost disadvantage the Detroit 3 suffered with the transplant facilities. BMW, Toyota, et. al. match UAW wages for assemblers, but contract out the indirect labor.
3. A one time payment into a separately managed fund has offloaded the retiree medical burden.

GM and the other 2 Detroit still have a long way back. The jury is still out. Too bad the union had to bring them to the brink of ruin for these badly needed reforms to take place.