What Whiny Porsche Fans Can Learn From Saab

2012 Porsche 911 GT3 RS. Photo courtesy Porsche Cars North America

If there's one thing in life I hate more than anything it's whiners. We all know people who are never satisfied with anything, who always pine after "the good ol' days" when everything was obviously so incredibly superior and who find fault in so much that surrounds them. Sadly there are many Porsche fans who fall into the whiner category.


I love Porsches and don't have anything against the brand or the culture in general, just to get things straight before I continue.

2013 Porsche Boxster S. Photo courtesy Porsche Cars North America

The Porsche fan whining picked up when the 911 switched from air-cooling to water-cooling, with people declaring the car was "ruined" and wouldn't be as reliable. I know Porsche fans and owners who still swear the only "real" 911s are air-cooled models. In more modern times Porsche fans complained like hell when the Boxster was introduced in the '90s. These people called the Boxster all kinds of names and some still refuse to accept it as a "real" Porsche. The truth is the Boxster likely saved Porsche from going into bankruptcy, and who knows where that would have led.

In recent years there has been quite a bit of whining going on about the Porsche Cayenne and Panamera. Personally, most of the people I've known who complain about these two models are people who haven't driven them, while those who have say they are amazing vehicles (especially the Turbo models). But of course people complain that they are front-engine, larger vehicles that are better suited for everyday driving and so that means they're not "real" Porsches (okay, there are other reasons cited for this not-a-real-Porsche classification, but they're just as silly in my opinion).

2013 Porsche Cayenne Turbo. Photo courtesy Porsche Cars North America

Even if you think the Cayenne is ridiculous and you lust after a 911, you can't get away from the fact that Porsche is now flush with cash thanks to its SUV and sedan. In the United States alone half of all Porsches sold are Cayennes, making it a huge cash cow for the company. I say anything that allows Porsche to build more versions of the 911 is a good thing, not to mention other high-performance models like the Cayman R.

These whiny Porsche fans could learn a thing or two from watching Saab and its ugly, slow death as an automaker. Saab was like Porsche back in the day: both automakers produced very few cars that fit into a niche in the market. The big difference has been that Porsche has expanded out into more mainstream product channels, meanwhile Saab engaged in some badge engineering with a Subaru Impreza wagon and a Chevy Trailblazer of all things! Saab could still be alive today if it had produced vehicles like its too-little-too-late 9-4 back when things weren't so grim (and it wasn't owned by GM). Porsche fans could be crying about the death of their beloved automaker at the hands of GM or some other automotive behemoth that loves to buy companies and then destroy those companies like a child pulling the legs off an ant before frying it slowly with a magnifying glass.

So to the Porsche fans who are still whining and bitching and moaning about the Cayenne, the Panamera and other upcoming "baby" versions of these models, I say stop your whining and enjoy the fact Porsche is around and doing so well!

The Second Coming of Saab

Saab PhoeniX Concept Car

People love a good comeback story, the kind where a person overcomes seemingly impossible obstacles, and Saab right now might be shaping up to be that kind of a story. Many people decided the brand was deader than dead three years ago when talk of bankruptcy and winding down the brand  was first brought up by General Motors management. After languishing for a while, the Swedish automotive brand finally seemed to succumb to the many factors that caused its demise. Many kind eulogies were written for the brand and then everyone seemed to move on.



But like a phoenix, (or maybe a zombie, depending on how things turn out) Saab refused to stay dead for very long. Now it promises to rise from the ashes of the company so many wept over, hopefully stronger and ready to thrive in the modern automotive world.

Saab PhoeniX Concept

At first, plans were to relaunch the brand with only EVs (electric vehicles). That plan was an ambitious one, one that seems to have been placed on hold. Rather than let consumers continue to think that the Saab brand is dead, the company will release a new generation of the iconic 9-3 sports sedan, but it will be gasoline-powered like in the past. Rumor has it that this new 9-3 will be based on the architecture of Saab's PhoeniX concept (but sadly the scissor doors probably won't make the cut--pun intended). In the next few years, expect to see electric Saab models rolling down a road near you.

How is it that Saab has been brought back from death? Despite what most people think, when a company goes bankrupt and closes that doesn't mean the products are dead forever. If that were the case, Jeep would have been history a long time ago. The Swedish company National Electric Vehicle Sweden AB (or NEVS) is partially responsible for this reboot. The company is owned by National Modern Energy Holdings, which is based in Hong Kong. A significant portion of the company is also owned by some private Japanese citizens, with the alliance surviving the current tension between the governments of China and Japan.

Saab PhoeniX Concept

China has been weighing in on electric car technology with a mandate for quite a few electric cars on the country's roads in the near future. This has helped fuel an interest in bringing more EVs to China. The US so far is the largest EV market in the world, so expect to see quite a few of these EV Saabs coming to America in the near future as well. I would imagine a fair amount of the new 9-3s will be landing on American shores as well, considering the US was a vital market for Saab back in the day. Still, with NEVS being based in China, and with the country's growing appetite for cars, Saab should be expecting to see a huge upswing in growth in China (just like Jaguar, Land Rover and Volvo are all experiencing).

Of course, everything is up in the air right now. Relaunching a car brand is not an overnight process, especially with part supply chains, readying factories, negotiating with assembly workers, training, testing, etc. I'm sure the public's response to this news will play a factor in deciding if Saab is back next year, so let's all make sure to let NEVS know there's still a viable market for a combustion engine 9-3!

Saab PhoeniX Concept Wheel - I love how it looks kind of like a turbine!

Bad Personal Experiences with Turbos

One of my very bad turbo experiences

I have officially owned three turbocharged vehicles up to this point in life. In reality I have some complex emotions about turbochargers, which are mostly negative in nature. Allow me to explain.

The first real experience I had with a turbocharged vehicle was when my oldest brother bought a 1997 Eagle Talon TSi. It came with all-wheel-drive and a large hump in the hood that supposedly was put there to make room for the turbocharger. Through the Talon's force-fed setup, it was able to produce 210 horsepower, making it a pretty fun and sporty car to drive. About a year later I was riding with my brother one hot summer night in Tempe, Arizona when steam started pouring out from under the Talon's hood. He pulled over to a gas station and popped the hood, allowing even more of the evaporated coolant to escape.

"Need some help?" two guys in a Civic quipped. I don't remember the exact response my brother shot at them, but it was pointed to say the least.

Fast forward several years, and I have owned two problematic turbocharged vehicles. Both of them were Volvos, which after finally consulting with a mechanic worth his salt about the second one, I have decided were both really bad ideas. Supposedly the first turbo Volvo was a lemon, as I had mechanics and Volvo aficionados swear to me that turbo Swede bricks often went to 300,000 miles or more without major mechanical problems.

The first turbo Volvo was horrible. The car drove fine at first, but eventually it started to spew out steam from evaporated coolant. I added coolant to the car constantly, but it regularly would threaten to overheat. I had a mechanic try to track down coolant leaks on multiple occasions, but it was to no avail. And then I started to notice the car's exhaust was white all the time--the surefire sign of a blown cylinder head. I didn't have the cash for a new head gasket, and then the car started to overheat all the time. It started running sluggishly. Rather than shoulder the huge repair bill it was sure to need, I dumped the car as quickly as possible.

The second turbo Volvo kindly waited until we were in the stretch of desert between Las Vegas and Los Angeles to manifest its forced induction problems. More specifically, smoke plumed out from the undercarriage, the result of an oil leak that traveled along the underside of the car until it reached the catalytic converter. As if that weren't enough, oil also spewed in tiny droplets out of the tailpipe, spraying all over the back window. The back window's wiper couldn't clear the sticky mess away, leaving the driver to look through a distorted and sickly yellow film to view traffic from behind. After many repair bills trying to track down the oil leaks, which seemed to crop up in new places after the old ones were fixed, I finally escorted the car to automotive heaven.
   
If it had been up to just these experiences, I wouldn't be conflicted at all about turbos. I would swear off ever, ever owning another forced induction vehicle. The fact of the matter was these two turbocharged Volvos happened to be a lot of fun to drive, when they were running at least reasonably well. Even though neither one had a large engine, they both accelerated strongly and provided a large power band. I live around large mountains with steep canyon roads, and both vehicles pulled strong up the steep inclines. The fact they had turbos also meant I didn't have to shell out a bunch of money for gas.

What made me feel even more conflicted about turbochargers was owning my Saab. Not too long after having purchased my Saab I realized its turbocharger system was much more advanced than the ones included in either of my Volvos. The turbo response was much faster, and the turbo pulled the car harder. Even better, I didn't have to deal with oil or coolant leaks, overheating or any of the other problems my turbo Volvos had almost from the get-go. The Saab was also a lot more fun to drive.

My turbo Saab

As I watch with great interest a sudden surge in turbocharger use by manufacturers such as Ford and BMW part of me gets excited while another part of me shrinks back in terror. Are these turbochargers like the one I had in my Saab (which was the newest of the three vehicles) or are they like the horrible ones in my Volvos? I know with any turbocharged vehicle you have to watch the coolant and oil levels like a hawk, but I also know from experience that being faithful about watching the car's fluids doesn't mean the turbocharger won't give you major headaches.

Let's just put it this way: I have declared to my wife that if I do buy another turbocharged car it won't be a Volvo and it will be a hobby car.

Saabs of our lives: No news is good news?

News about Saab's future is sketchy at best. News has been very slow about what is happening in Trollhattan. Here in North America, Saab dealers are about at their wits end with the company. There have no new cars in months, sales have plummeted, and now there's no money coming in from warranties. But all of that came to an end last month with the announcement that Saab North America was essentially pushed into bankruptcy filings by the Saab dealers themselves who filed for chapter 7 bankruptcy on January 31st. This means that Saab will go in to full liquidation. Saab NA, has essentially been shut down since December 19th when Saab Automobile filed for bankruptcy protection in Sweden. As of January 13th, 80% of Saab NA's employees had been laid off. Now the U.S. headquarters in Royal Oak, Michigan will shut down sometime this month. McTevia & Associates who was appointed as the administrator prior to the bankruptcy filing says that they are still working on finding a buyer for Saab's parts distribution arm as there will still be a demand for Saab parts.

Source: Automotive News.

Saabs or our lives: Saab NA Hertiage Collection up for auction

Many of you may remember our posts from a few weeks ago concerning the Saab Museum in Sweden going up for liquidation sale and the subsequent saving of the collection.

Now the same fate awaits the North American end of Saab's Heritage Collection. The Saab Club of North America and Hemmings Motor News are reporting that Saab North America's collection will all hit the auction block this week. .However, this sale is being conducted a little bit different. The Saab museum has a vast collection of cars, where the Saab North America's collection consists of only 11 cars that are all significant in their own right. As such, the entire collection of 11 cars will be sold as a lot rather than breaking the collection up. This is unfortunate, but it will for at least the time being preserve the collection as a whole. And what the collection lacks in size, it makes up for in variety. There are production cars, race cars, and even a prototype convertible.

McTevia & Associates is handling the sale and all bids are to be submitted by noon on Friday February 10th. All bids are to be submitted to the attention of  Dennis McTevia. The Saab Heritage Collection is located in Sterling Heights, Michigan and are being sold as is, and on bill of sale only. So you would have to be creative in order to license any of the cars for road use.

Here's a sample of some of the cars in the collection. Well, at least the ones I really like.

There were only 6 Saab Sonetts built in 1956. So this is probably the most significant car in the collection. This was the second car built that year.

 This 1960 Saab 96 is a genuine rally car. It won the 1960 RAC Rally of Great Britain and was driving by Saab and rally legend Erik Carlsson. I don't think you would want to submit this car to vintage rallies today.

I have always been a huge fan of the Saab 99/900 Turbo coupes. This 1978 99 Turbo was a one year only car and had a production run of less than 4,500 units. This example shows less than 40,000 original miles and has been meticulously restored to like new condition.

Following on the success of the 99/900 comes the 1986 900 Turbo convertible prototype. What's really col on this one is the rear spoiler has been carved out of wood rather than the molded rubber of the production model.

This 1987 9000 Turbo sedan was one of three cars built for the FIA Saab Turbo In The long Run challenge at Talladega Raceway (Save me Tom Cruise!) in October 1986. The three cars featured sealed engines and transmissions, a full roll cage, and six point safety harness. The cars were treated to 20 days and 20 nights of straight driving and the only repair parts that could be used  would be 179 pounds of spares carried in the cars during the challenge.  During this time, each car racked up over 100,000 kilometers and averaged between 130 and 133 miles per hour and covered over 3,000 miles per day. Quite an endurance test. All 3 cars still exist. One in Saab Museum, one at Talladega, and the car pictured here. These cars also beat Talladega's average speed record set by Ford of 132.5 miles per hour. Saab also set 21 International and 2 World Speed Records.

Saab would again return to Talladega in 1996 with a fleet of new 1997 900 coupes in an effort to break their records set in 1986. The cars were set up no different from the 1987 models and followed the same strict guidelines set by the FIA. At the end of the challenge, 18 of Saab's records were beat and an additional 22 International Speed Records were set. For more info on the Saab Talladega challenges, check out this great article over at Hemmings.  

We'll keep you updated as we hear more about the sale and potentially where the collection will end up. 

Source: Hemmings Motor News

Saabs of our lives: Saab museum saved

News this morning from Trollhättan. It appears that the Saab automobile museum has been saved.  The city of Trollhättan, SAAB AB and The Wallenberg foundations have all stepped up to the plate with a combined bid of $28 million Kroner or $4.14 million dollars to save the museum from being broken up. Hemmings Motor News reports that some individual bids for cars were being accepted, but it is not known if the sales will go through or if all of the cars will remain in the collection. Saabs United reports that over 500 bids were submitted for the museums collection of cars. So right now the good news is, that even if Saab does end up going away at the end of bankruptcy proceedings, the history of the brand will continue on. 


Source: Hemmings Motor News, Saabs United

Saabs of our lives: Breaking news! Museum liquidation sale

Now you know things are bad when a car company liquidates their private museum collection of cars. GM did this a couple years back at Barrett Jackson selling cars from their Heritage Collection, but still keeping the choice stuff. Word has come down today that Saab is liquidating their collection of cars. Interested buyers have until Friday January 20th to submit their offers for the whole collection or individual cars. Saabs ranging from the original 1946 Ur-Saab to 900 Turbos to formula cars. Milestone cars like the 4 millionth Saab, Rally 95s and 96s and even concept cars are all up for grabs. I would imagine many of these cars are being sold for pennies on the dollar, the only problem for those of us here in the U.S. is shipping the cars back. For a full listing, please see this PDF file. I hope a listing of what the cars sell for will be made available.

Source: Bringatrailer.com

The last Saab? Well kinda sorta

Even I have been surprised about how quite the Internet has been about the ultimate demise of Saab. As of our last check, dealers here in the U.S. for the most part have put the sale of new Saabs (some still 2010 Models) on hold til Saab corporate and Saab North America figure out what the next move is. In the mean time it has been announced by fan site, Saabs United that a handful of Saab workers will go back to work to finish the last 100 or so cars left standing on the assembly line for the last few months when production stopped. Should Saab fade off in to the darkness, will there be a last hurrah or a show of appreciation as the last Saab leaves the assembly line like the last Ford Crown Victoria and Ranger or the last Oldsmobile? Doubtful outside of the thousands of Saab fans worldwide. But that is all the news that is currently floating around the net on what fate has in store for Saab.

We do also hear of a series of events being held around the world for Saab in the next few days. www.outside-saab.com is showing there will be 73 events in 35 countries on the 14th and 15th of January. I can't tell if these are events being held in hopes of saving the company, or just to celebrate the quirky brand we have all come to love. Either way it brings the fans together.


Source: Saabs United

Breaking Saab news: No more warranty coverage.

Breaking news from Saab. Saab North America will no longer be honoring warranties on Saab vehicles sold in the U.S. Additionally, all new Saabs sold will be sold "as-is" with no warranty coverage what so ever. 

Effective Dec. 19, "warranty coverage is suspended indefinitely for all new Saab vehicles sold. During this period, the warranty booklet must be removed from the owner information packet," Saab Cars North America said in a statement provided to Automotive News.

"For any vehicle sold or leased during this period, the customer should be affirmatively advised that the vehicle does not carry any warranty coverage and is sold 'as is.' "
Saab Cars North America also said it has suspended the processing and payment of all claims, including but not limited to:

• New-car warranties
• Powertrain warranties
• Emission warranties
• Parts warranty
• Safety belts, airbags
• Towing
• Recalls and campaigns
• Certified pre-owned coverage
• Goodwill
• No charge maintenance

Read more: http://www.autonews.com/article/20111220/OEM/111229990#ixzz1h6iiimoE

Until February of 2010, General Motors handled all warranty claims for Saab, but that had since stopped when Swedish Automobile AB purchased the automaker.

What does this mean for potential sales of new Saabs over the next few weeks/months? Well there probably won't be many. Currenty, Saab says they have 2,400 new Saabs available for purchase nationwide. And with sticker prices well over the $30,000 mark, I don't think too many potential buyers want to shell out that kind of cash on a new car that won't have warranty coverage.  So will dealers be offering huge blowouts on cars in inventory? I can see that on the horizon. But I wouldn't hold my breath on any of these new cars being collectible for the time being. We will keep everyone updated on any further drama on the Saabs of our Lives.

Source: Automotive News.

Saab files for bankruptcy protection. What's next?

The soap opera that has become Swedish automaker Saab, continues to unravel. The automaker is expected in bankruptcy court today in Sweden where it will find if they are shielded from creditors while a buyer for the company is found.

General Motors, former owner of Saab until their own bankruptcy let them shed the automaker, has been blocking the potential sale of Saab to a Chinese automaker. GM's basis is because they do not want the sharing of GMs platform technology with another competitor that could potentially undercut them in the Chinese market that GM has seen huge success with. And unfortunately, Saab depends on GM's help in that are in order to be able to build cars or at least until Saab has the funds to develop their own technology again. And that really isn't going to happen any time soon.

All the while dealers in the US and around the world have been patiently awaiting cars to be able to sell to customers, and with each passing day, its looking less and less likely they'll see them. So is this the swansong for Saab? Unfortunately it looks like it may very well be. I have always been a fan of the brand and would hate to see them go away, but I think the time has come to envision a world without new Saabs.

The end has come. GM to wind down Saab operations.

After failed talks between Koenigsegg and now Spyker, General Motors has announced today that the Saab brand is no more. GM will begin immediately to wind down operations of the 62 year old Swedish auto manufacturer. It truly is a shame that a deal couldn't happen between either of the interested parties. But alas there just isn't a place for Saab in the New GM.

Official Statement from GM.

 

Saab Sale Cannot Be Concluded

Brand to be Wound Down

2009-12-18

 

Detroit.  General Motors announced today that the intended sale of Saab Automobile AB would not be concluded. After the withdrawal of Koenigsegg Group AB last month, GM had been in discussions with Spyker Cars about its interest in acquiring Saab. During the due diligence, certain issues arose that both parties believe could not be resolved.  As a result, GM will start an orderly wind-down of Saab operations.


“Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time.

In order to maintain operations, Saab needed a quick resolution,” said GM Europe President Nick Reilly.  “We regret that we were not able to complete this transaction with Spyker Cars. We will work closely with the Saab organization to wind down the business in an orderly and responsible manner. This is not a bankruptcy or forced liquidation process. Consequently, we expect Saab to satisfy debts including supplier payments, and to wind down production and the distribution channel in an orderly manner while looking after our customers.”


Saab will continue to honor warranties, while providing service and spare parts to current Saab owners around the world.


As part of its efforts to become a leaner organization, GM began seeking a buyer for Saab’s operations in January.  Last week, Saab Automobile AB announced that it had closed on the sale of certain Saab 9-3, current 9-5 and powertrain technology and tooling to Beijing Automotive Industry Holdings Co. Ltd. (BAIC).  GM expects today’s announcement to have no impact on the earlier sale.


As the company continues to reinvent itself, GM has been faced with some very difficult but necessary business decisions. The focus will remain on the four core brands – Buick, Cadillac, Chevrolet and GMC – and several regional brands, including Opel / Vauxhall in Europe.  This will enable the company to devote more engineering and marketing resources to each brand and model.




General Motors Company, one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall, Wuling and Jiefang. More information on the new General Motors Company can be found at www.gm.com.

As official as it is going to get. General Motors files for bankruptcy

We're experiencing history folks. General Motors, the largest auto manufacturer and one of the worlds largest corporations has officially filed for bankruptcy in the United States Bankruptcy Court.

We are awaiting a press conference from President Barak Obama regarding GM, and we will bring updates as they become available.

We do know that Chairman Fritz Henderson WILL continue to lead GM through bankruptcy. The fate of Saturn, Hummer and Saab is still up in the air at this point. Going through bankruptcy, GM will carry Chevrolet, Cadillac, Buick, GMC Truck. Hummer, Saturn, Saab and Pontiac will be either phased out or sold.

The New York Stock Exchange was showing GM stock valued at $.75 cents late last night with morning trading showin $.70, though it has steadily gone back up all morning. Currently it is trading at $.98 cents per share.

General Motors to declare bankruptcy tomorrow

Tomorrow will be a truly sad day for the automobile industry. General Motors, the largest automobile manufacturer in the world, bankrupt. It just doesn't make sense saying it, even though we've been talking about it for months now.

General Motors was once THE company to watch in the industry. You could have said, what General Motors wants is what America wants. Unfortunately that isn't the case any more. Poor management decissions and the inability to keep up with market trends led to yearly losses in the billions of dollars. Couple that with legacy costs, the UAW, and the failure to restructure after government loans to the tune of $20 billion and we're left with the smoldering pile of goo that was once General Motors.

The saddest part is the loss of some great GM brands. We lost Oldsmobile in 2004. Hummer and Saab had been up in the air for the last 6 or so months, Saturn was poisoned by GM management over the last 15 + years. Opel is being divided up. And the biggest blow, Pontiac. Finally when Pontiac is making some great, fun cars they get the rug pulled out from under them.

This leaves GM with just Chevrolet, Cadillac, Buick, and GMC truck. I doubt we'll see the giant of GM that once was in the 1950s and 60s.

Stay tuned for more info as it becomes available.

GM dealer network update

General Motors is going a different route than Chrysler LLC in regards to their dealer network. Rather than just say adios, you're done. GM is electing to not renew sales and service agreements with 1100 dealers when they come available for renewal in the 4th quarter of 2010.

Dealers targeted were stores that have poor annual sales 35 units or less per year. That makes up 400-500 of the dealers. The rest are not meeting their required sales and service performance, CSI, etc. that are performing below average. These 1100 dealers make up 7% of GMs yearly sales.

There are about 500 dealers who are dedicated to Hummer, Saab & Saturn brands. There will be a further update regarding these brands and those dealers in the next week or so. General Motors North America Vice President Vehicle Sales, Service and Marketing, Mark LaNeve did make it clear that dealers of these three brands "will exist outside of General Motors next year".

It was made clear that without GM filing bankruptcy, that these letters will be hard to enforce. This is why GM is putting the options into the dealers hands to enforce whether to wind down business and close, or find another brand to carry.

GM's intentions are to land somewhere in the neighborhood of 3600-4000 dealerships.

"This is one of the most difficult decissions we have as part of our restructuring" LaNeve said.

Press Release:

In conjunction with conversations General Motors started with its U.S. dealers today, GM issued the following statement -->

GM Statement Regarding Dealer Network Communications

As noted in our recent S-4 filing and updated Viability Plan, General Motors plans to reduce its dealer network from 5,969 stores today to approximately 3,600 by the end of 2010.

This process starts today, as GM begins contacting dealers regarding its long term planning. Approximately 1,100 underperforming and very small sales volume U.S. dealers will be advised that GM does not see them as part of its dealer network on a long-term basis. In most cases, existing franchise agreements run through October of 2010.

In addition, we will be updating about 470 Saturn, HUMMER and Saab dealers on the status of those brands and we will be discussing how the remaining dealers will support our retail plans going forward. While additional cuts will be made, we believe the vast majority, over 90 percent, of the remaining dealers will be offered a chance to remain with GM. However, specific dealer issues, further attrition and additional possible dealer network actions are expected to bring the number of future GM dealers to around 3,600 by the end of 2010, as described in the Plan. The actual number could vary given levels of attrition, etc. outside of GM’s control.

“We have said from the beginning that our dealers are not a problem but an asset for General Motors,” said Mark LaNeve, GM Vice President of Sales Service and Marketing. “However it is imperative that a healthy, viable GM have a healthy, viable dealer body that can not only survive but prosper during cyclical downturns. It is obvious that almost all parts of GM, including the dealer body, must get smaller and more efficient.”

“In response, we are letting them know about our long term plans. GM’s viability plan calls for fewer, stronger brands as well as fewer, stronger dealers. We have taken a very difficult step by identifying those dealerships we’d like to keep in the GM dealer network and those with whom we will have to wind down our business relationships,” LaNeve said.

As independently owned businesses, dealer owners will make their own decisions if and when they want to make this information public. GM is not releasing the names of any dealers.

“We are not terminating any dealerships today,” LaNeve clarified, “We will be talking to all of our dealers over the next few weeks, letting them know now in the spirit of open communication, so they are advised well in advance, about our long-term plans and their role in them. Long term, GM should have fewer, healthier dealers, maintaining GM’s current high customer satisfaction ratings, with more sales per outlet.”