GM may boost vehicle prices to offset rising costs

Boost prices in a failing economy and a failing auto market-another devious GM plan to "right size" their operations. Brilliant!
GM may boost vehicle prices to offset rising costs
http://www.autonews.com/apps/pbcs.dll/article?AID=/20080320/ANA02/131405067/1142
Automotive News | March 20, 2008 - 5:10 pm EST
General Motors is studying ways to offset cost pressures, including possibly raising prices on some vehicles, CFO Ray Young says.
GM also has taken about $500 million in “management actions” to mitigate any potential downturn, Young said during a conference call Wednesday with analysts. He did not give specifics.
“As CFO, my priority is making sure this place is funded,” Young said. “While we believe the industry (in U.S. sales) will be in the low 16 million units, we have triggered actions right now to make sure we start to conserve liquidity.”
For instance, GM has moved some nonproduct related capital spending projects from the first half of this year to the second half, Young said. “If the market doesn’t return, we will defer that further into the future,” he added.
GM will run the business on a “quarter-to-quarter” basis, Young said.
The automaker is seeking ways to further cut manufacturing costs and commercial and administrative spending. Young did not give specifics but said that spending is now “totally contingent on the market coming back the second half of the year.”
Young said: “The message I want to leave with you is that while we’re still planning for a low 16 million industry, from a liquidity and spending perspective, as CFO I am very, very cautious that we measure out the spending and that the organization can afford it.”
GM ended 2007 with $27.3 billion in cash and it has $7 billion in undrawn credit lines, Young said. GM is monitoring its liquidity, but Young said he is confident in GM’s liquidity position through 2008.
GM’s 2008 strategy
GM will continue to use disciplined incentive spending and hold back its daily rental fleet sales, Young said. GM also plans to keep inventory in line with demand to avoid having to offer incentives to move product.
“These are volatile markets right now,” Young said. “We’re going to digest what has happened in the month of March and set our production schedules accordingly for the second quarter based on what happened in March and make sure we don’t overproduce or have excess inventory.”
At the end of February, GM ran about 940,000 units of dealer stock, that’s about 125,000 below the level at this point last year, Young said.
GM will also monitor its product mix and net prices.
“We’ll be aggressive in our pricing. At end of December we increased prices in the U.S. by 1.5 percent on average for our vehicles to offset some of the increase in commodity prices,” Young noted.
This year, GM will look to offset some of the cost pressures by strategically applying additional price increases on some products, Young said.
More growth in emerging markets
One example, Young listed was with Saab where GM raised prices to offset the currency imbalance of the weak dollar against the strong Euro. He says Saab will continue to raise prices on newer product as well.
The continued strength of exports is one encouraging sign GM sees for the industry this year, Young said. He said if the dollar continues to be weak against the Euro, GM will look for ways to export more vehicles from North America to Europe.
GM predicts a 41 percent growth in the size of emerging markets between 2007 and 2012, Young said. GM’s plan is to “grow like heck in the emerging markets,” he added.
The good news is GM is well positioned in emerging markets, Young said. There is tremendous growth potential in Russia, India, China and Brazil. One day, China will be GM’s largest market in the world terms of its growth rate, he said.
GM will also look to take advantage of some government-funding programs in countries such as Brazil to help boost much-needed capital, Young said.
--
Civis Romanus Sum

Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

The great potential
GM will increase its share of the virtual auto market. Yound said that the virtual market will be increasingly important to GM. People will be able to come to the dealerships and experience the big big american dream to sit in an american car and drive around for hours with the need to pollute or spend a lot of money on oil. GM has made a deal with bollywood to make movies about driving all over the world to use in the simulators. Young said GM will make so much money on the simulators that GM will be able to use all the money they used to make real cars and give it to the managers as bonuses instead. By closing all the plants GM can go on paying the managers for a long long time. Young said that top management is so happy with this bright idea and they are sure noone else will understand why the virtual dream has not arrived before.
Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

You are a friggin idiot. If you had half the brains that some guy running GM had you would be somebody, not just a blathering tard on usenet.
Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Gosi wrote:

Nice satire, that's hilarious.
-b
Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

The Grand Mafia(GM) has decided to expand on the VAM(Virtual Auto Market) The dealership VAM:s has proven to be such success that for 2010 GM isplanning for VOLTA(Virtual On Line Tantra Automobile) for home use. The Volta will give you the look and feel of the real thing. You will get the body of a full blown auto to take to your home. All the ordinary windscreens will play authentic movies so when you look out the window you will get the feeling of traveling. The whole family can sit in the simulator and experience long trips together. A single man without a family will be ableto get a life size doll to play with in the back seat as an optional extra. The Home movie branch of GM is already planning for several versions of different scenarios to be played in a 360 degree surroundings. Take a trip to exciting places in the security of your own home. On the drawing board planned for 2015 is a minibus version which will allow you to go cross virtual countries together with your friends. Spend the evenings in Europe or in the wild east and be as safe as you want. The marketing and sales departments of GM are having a field day of planning for a very safe and exciting future. GM is already closing down the real plants but there is a huge potential for some parts that make bodies for the home market.
Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Braking news:
The Home Movie division of GM has been named Humvie. It:s like nothing else
Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

Will they perhaps have a movie of you slipping off somewhere where there is not internet connection?
--

-Mike-
snipped-for-privacy@alltel.net
  Click to see the full signature.
Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here. All logos and trade names are the property of their respective owners.