[NFS2024]

Guys its simple, either the US government lends money and allows GM to continue operations for the foreseeable future or the company has to shut shop as there will not be any money for operations. How do you expect the company to run its operations without any liquidity?

GM anyways has filed for bankruptcy and it will affect its operations across the world. Not a good time to buy GM cars!

[revhappy]

Originally Posted by sidindica

yet again, for the 4th tme in less than 2 years since the spark was launched, GM is offering Rs. 55,000 cash discount in the spark. Is the car a sales disaster in India? or is it a sign of troubles mounting in GM India?

what are your opinions? will the spark have the same fate as the matiz even though GM claims that this celebration is to commemorate 30 lakh spark customers globally?

Sorry, didnt quite understand what you mean by "spark will have same fate as matiz"

Cielo had the worst fate and customer's who bought it were ruined.
Matiz was relaunched as spark so matiz had a better fate.

Even now, as long as people buy cheap low end sparks when the discount is running and at under 3 lacs they are fine what can they lose?
At 3 lacs if the car runs for 5 years and then they can ditch it for no loss.

But the worry is for the owners of Aveo, optra etc

Those vehicles resales will crash.

[shortbread]

I honestly dont give a damn as to what happens to GM, the co. had things way too easy for so long and was stubborn as well as lazy to adapt to market realities until lately. The ironic fact is despite its global operations being in a better(or less worser) position than its pit hole US operations, they are all being sacrificed for saving the US one.

My worry is that there are a huge number of Chevrolet (Opel has been left to die aldready) owners in India, like myself. We have two Taveras in our family and I am worried as to the support we will be recieving in a years time. The cars are primarily used as taxis and its very important that these cars have Service back up for another 5 years if we have to even break even. No denying that we should have considered this before buying the car, but all we saw was the Tavera served the intended purpose well and that GM was/is the 'Worlds largest Car maker.'

Speaking to the dealership they tell nothing will happen to GM India, i dont know wether this is self denial or utter ignorance. when i explained the situation in detail, the Customer relations manager joked that maybe its time he finds another job, I told him having more than 14 lacs depending on his companies services i did not find that funny.

From what I can see soon resale values nosedive and struggle for spares/backup in the near future. If this was a situation with a bank, customers can be assured of RBI/Govt. intervening, but somehow if you invest in a car its your own risk. guess thats how capitalism works.

somebody should do something to ensure that past, present and future GM India customers are protected from the mess they are not responsible for. They should not be allowed to sell more cars until and unless they assure everyone about the situation.

[sonirohit]

Originally Posted by shortbread

We have two Taveras in our family and I am worried as to the support we will be recieving in a years time. The cars are primarily used as taxis and its very important that these cars have Service back up for another 5 years if we have to even break even.

Well then why don't you sell them off right away and book a partial loss (which probably can be claimed as depreciation)

[vasudeva]

Thank God, I have long back (in 2007) paid off my Corsa loan. Will not fetch me much in resale. However, it has run only 39K so far, and considering its present usage (2K/annum) has a long way to go. However, once a GM customer, always a future Toyota customer.

[ksethuram]

GM is a joke, They had shares in Suzuki and Fiat, but sold them before they started making money. Now FIAT and suzuki are stronger than ever. Suzuki has tieup for engines and platform sharing with FIAT... Ford uses FIAT's punto for its new KA.... How about Opel or Chevy having a tieup????? None with other companies..

Since GM is sinking, German and Swedish Governments are planning to natioinalise Opel and SAAB... So they are not stepping in with packages like the US government....This is good news for companies like ford as people think about future of companies before buying a product... The latest news is that Ford's Fiesta manufacturing plant is running in full pace and unable to meet its orders for Fiestas (European hatchback..not our saloon).

I dont know if there would be many takers for GM india as its product portfolio is not that strong when compared to its competitors, bit it is good if GM india survives.

[bharanidharang]

Originally Posted by ksethuram

GM is a joke, They had shares in Suzuki and Fiat, but sold them before they started making money. Now FIAT and suzuki are stronger than ever. Suzuki has tieup for engines and platform sharing with FIAT... Ford uses FIAT's punto for its new KA.... How about Opel or Chevy having a tieup????? None with other companies..

Since GM is sinking, German and Swedish Governments are planning to natioinalise Opel and SAAB... So they are not stepping in with packages like the US government....This is good news for companies like ford as people think about future of companies before buying a product... The latest news is that Ford's Fiesta manufacturing plant is running in full pace and unable to meet its orders for Fiestas (European hatchback..not our saloon).

I dont know if there would be many takers for GM india as its product portfolio is not that strong when compared to its competitors, bit it is good if GM india survives.

for that matter.opel might not survive

read this BBC NEWS | Business | Opel 'should consider insolvency'

[Gear-ge]

Hi guys,

I think you are all on the right track, as far as GM is concerned. They have not only decided to bury Opel, they are letting their so-called-authorised service centre guys to have a field day with existing Opel Customers.

We have a 1999 Corsa 1.6, has hardly done 70K kms but is in deep trouble because every time we have gone back to the ASC, they have ripped something off, by-passed fuses, buggered up the electricals completely.

Recently we had the coolant begin to leak, took it to these guys and they said it would cost 40K to fix!

I think we are going to put that lemon up on the web for cannibalization!

[shortbread]

Just an update as to how GM is getting on with digging its own grave.

• The Obama administration refused on Sunday night to give fresh bail-out money to [COLOR=#003399]General Motors[/COLOR] and Chrysler, telling the carmakers to come up with new plans or risk insolvency.
• General Motors' chief executive Rick Wagoner has been ordered to resign by US president Barack Obama with immediate effect.
• Reports have suggested that a frustrated Mr Obama will reject GM and Chrysler's turnaround plans as unrealistic, raising the risk of the carmakers' bankruptcy.
• Officials said on Sunday night that Chrysler would be given 30 days and GM 60 days to reach agreement with debtholders and unions, with new tougher targets for cost cutting, or they would lose their last chance for a government bailout, almost certainly sending them into bankruptcy.
• Warranties on the companies’ cars sold in the US will be guaranteed by the government in a bid to prevent buyers from turning away from GM and Chrysler.

Although the situation looks bleaker, its nice to see Obama grab these companies by the collar rather than give into their demands. But there is no answer as to the future of GMs global operations including GM India.

Sources
Crunch watch Mar 09: the auto industry in crisis | Automotive & Motoring News | Car Magazine Online
FT.com / Companies / Automobiles - GM and Chrysler denied extra funds
BBC NEWS | Business | GM chairman forced out by Obama

[m4w]

Obama asks GM head honcho to quit?! I thought capitalism was about governments not interfering with market forces and letting the fittest survive. Clearly, I was wrong.

On a related note, the most lucrative job in the world right now is that of a lobbyist working for the American auto/financial corporates.

[gkrishn]

Originally Posted by m4w

Obama asks GM head honcho to quit?! I thought capitalism was about governments not interfering with market forces and letting the fittest survive. Clearly, I was wrong.

I don't think that argument is valid for GM. They are already bailed out by the govt. With out which they would have collapsed already. And since govt lend money, they have a say in how to run the company. So i guess it is fair enough...

[METISWHG]

Just saw Obamas speech. the tone gave me a feeling (and i maybe wrong), that this was last ditch attempt - and the chances are low for the company to do a turnaround.
but still there is news about its impact in India.

[nikhil3456]

Originally Posted by METISWHG

Just saw Obamas speech. the tone gave me a feeling (and i maybe wrong), that this was last ditch attempt - and the chances are low for the company to do a turnaround.
but still there is news about its impact in India.

'GM India insulated from all troubles'
'GM India insulated from all troubles' - India Business - Business - The Times of India

[quickdraw]

I dont think the losses are happening because of the horrid sales figures alone, what were they thinking when there were out there acquiring brands for billions? What did they think will happen?

[tushky]

now read this
Fiat to Merge with GM Europe & Chrysler to Create New Automotive Superpower - Worldcarfans