Mentioned in another related article that Given their cahs reserves it needs to earn a 7.8% ROI to pay its bills. If anyone can find me an investment returning anything close to that right now i’ll find you a unicorn.
GM wouldn’t cancel the ZR1 now, the need the cash from the sales. The money was already spent on R&D and tooling, canceling it now would just lock in a loss instead of allowing it to recoupe those costs.
The corvette has always been GMs signature model and one of the few models they have alwyas sold at a profit. That would certainly mortgage their future image and lose one of the most loyal fan bases in automotive history.
Sounds to me like the Fed has a hand in this. Federal Gov’t chapter 11 liquidators, would cancel the ZR1 now. They would also put a stop to all products they deem non essential and any costly product lines R&D for anything other than low cost, large volume vehicles. You know what else they would do? Look to mortgage out the Rennissance Center.
You think the economy where it is and the market performing the way it has over the last few weeks the Gov’t would let GM come out and announce it can’t afford to pay its bills NOW? Where do you think the Dow would be if that happened yesturday or today? 6000? 5000? That would indeed throw our economy into a serious DEPRESSION.
I hope I’m wrong but I can see the forest through them trees there and I’m scared shitless.
They need to stop wasting money on cars nobody can afford.
Stop over charging for cars nobody is going to over pay for.
Nobody can afford a 70,000$ vette, lets be real for a second.
How many do they honestly expect to sell?
The Cobalt should have cost sub 12k loaded.
I hope they don’t get the mortgage.
They need to fire every one of thier employee’s and hire people for a sane wage.
Honda can sell cars cheaper because thier labor is cheaper its that simple.
If the highest payed job with anything gm payed 15 or less, they could make money.
nobody can afford them? don’t account NYSPEED for the rest of the US…lol
-honda labor is cheaper? LOL
-did you even read this? it’s clearly stated the corvette is the continuously profitable. the R&D is what hurts…
im willing to bet you dont know the basics of economics… supply and demand…?
It will def hurt the ecconomy even more if this happens, but still none the less, I will never own another American car again as long as i live. All tho if i was going to it would prob be a gm because ford and mopar suck even worse.
Definitely not good news, it’s not so much their pricing that’s the problem, it’s the competition. Only a few of their cars are a really good value for their price. Only the corvette really comes to mind, but I’m sure there are others.
I know I’ve caught myself a few times saying “Oh that <GM Car> is pretty nice, but for that price, I’d rather have a…” It’s not so much a concept of supply and demand, it’s more of a concept of they just aren’t coming out with good enough shit. Sure, the newer Corvettes are great, but how many Americans drive them compared to the lower/middle class who just need something to get from Point A to Point B?
plenty of ignorant statements made here. Let’s hope gm falls so we can put thousands upon thousands of americans out of work. You people really are fucking dumb
as much as i dislike american cars, it would be terrible if gm went out of business. several thousand people would be out of the job and that would be terrible for this country.
Fuck GM, Im not really sure why though, its not really their fault, why would they spend more money to build a better car when no matter how shitty of a product you put out, the American consumer will still buy it. as much as I’d like never to see another worthless peice of GM crap on the road, I must agree it would be devastating for this country, which comes as no surprise because where basically fucked either way, whether it be now or later down the road, bring it on I guess
I try my best to purchase American made things whenever possible. I will never buy an import car for this reason alone. I don’t give a shit if your new Toyota was built by Americans in North Dakota or wherever. A huge portion of the money you spent on it went over to that little island in the Pacific.
The import guys always bash the shit out of American cars. It’s always about the dumbest shit though…OMG plastic in the interior OMG WTF!!! OMG, that car is so hideous!!! (coming from a guy who drives a Civic). Maybe they aren’t the best of the best, who knows. Do you really need a car that is perfect? A car that requires zero maintanance? American cars built today are light years better than the ones built in the 70’s, 80’s and 90’s. I’m pretty sure I could hop in a $30,000 VW and laugh my ass off at it’s severe lack of power, and then after 30,000 miles when I go to replace the brake pads/rotors, find out that I have to order them through the dealer ($$$$) instead of just heading to AutoZone. There are perks to owning an American car that people always overlook.
As for $70,000 'Vette’s, I have seen several Z06’s cruising around, and there is a shitton of people, in this area alone, who can afford them.