Gm's Commitment To The American People

Darkanion · December 8, 2008

As run in Automotive News today :

http://www.autonews.com/assets/PDF/CA59166128.PDF

GM'S COMMITMENT TO THE AMERICAN PEOPLE

We deeply appreciate Congress considering General Motors' request to borrow up to $18 billion from the United States. We want to be sure the American people know why we need a loan, what we will do with your money and how it will make GM viable for the long term.

For more than 100 years, we have been serving your personal mobility needs, providing American jobs and serving local communities. We have been the U.S. sales leader for 76 consecutive years.Of the 250million cars and trucks on U.S. roads today, more than 66 million are GM brands — nearly 44 million more than Toyota brands. We value your business and appreciate the confidence you have in our products. Our goal is to continue to fulfill your aspirations and exceed your expectations.

While we're still the U.S. sales leader, we acknowledge we have disappointed you. At times we violated your trust by letting our quality fall below industry standards and our designs become lackluster. We proliferated our brands and dealer network to the point where we lost adequate focus on our core U.S. market. We also biased our product mix toward pickup trucks and SUVs. And we made commitments to compensation plans that have proven to be unsustainable in today's globally competitive industry.

We have paid dearly for these decisions, learned from them and are working hard to correct them by restructuring our U.S. business to be viable for the long-term.

Today, we have substantially overcome our quality gap; our newest designs are widely heralded for their appeal, such as the Chevrolet Malibu and Cadillac CTS; our new products are nearly all cars and crossovers rather than pickups and SUVs; our manufacturing operations have greatly improved productivity, and our labor agreements are much more competitive.

GM is also driven to lead in fuel economy — with more hybrid models for sale and biofuel-capable vehicles on the road than any other manufacturer — and is determined to reinvent the automobile with revolutionary new products like the Chevrolet Volt* extended-range electric vehicle and breakthrough technology like hydrogen fuel cells.

Until recent events, we felt the actions we'd been taking positioned us for a bright future. Just a year ago, afterwe reached transformational agreements with our unions, industry analysts were forecasting a positive GM turnaround and our stock price reflected that confidence. We had adequate cash on hand to continue our restructuring even under relatively conservative industry sales volume assumptions.

Unfortunately, along with all Americans, we were hit by a "perfect storm."Over the past year, all of us have had to deal with volatile energy prices, the collapse of the U.S. housing market, failing financial institutions, a stock market crash and the complete freezing of credit. We are in the midst of the worst economic crisis since the Great Depression.

Just like you, we have been severely impacted by events outside our control. U.S. auto industry sales have fallen to their lowest per capita rate in half a century. Despite moving quickly to reduce our planned spending by over $20 billion, GM finds itself precariously and frighteningly close to running out of cash.

We know some Americans have questioned why the Federal Government should assist the auto industry, specifically when so many other sectors of the economy appear to be at serious risk too. The answer is because we have already lost a number of industries that spin raw materials into finished products that can be purchased by the citizens of this nation and, just as importantly, those of other nations.

A healthy manufacturing base generating exports is critical to the economy and national security of the United States. The auto industry is the backbone of this country's manufacturing base.

This is why we need to borrow money from U.S. taxpayers. If we run out of cash, we will be unable to pay our bills, sustain our operations and invest in important advanced technology. A collapse of GM and the domestic auto industry will accelerate the downward spiral of an already anemic U.S. economy. This will be devastating to all Americans, not just GM stakeholders, because it would put millions of U.S. jobs at risk and further deepen our recession, a crisis that would not merely be localized to the Midwest.

By lending GM money, you will provide us with a financial bridge until the U.S. economy and auto sales return to modestly healthy levels. This will allow us to keep operating and complete our restructuring.

We submitted a plan to Congress on December 2, 2008, detailing our commitments to ensure our viability, strengthen our competitiveness and deliver energy-efficient products.

Specifically, we are committed to:

• producing automobiles you want to buy and are excited to own

• leading the reinvention of the automobile based on promising new technology

• focusing on our core brands to consistently deliver on their promises

• streamlining our dealer network to ensure the best sales and service

• ensuring sacrifices are shared by all GM stakeholders

• meeting appropriate standards for executive pay and corporate governance

• working with our unions to quickly realize competitive wages and benefits

• reducing U.S. dependence on imported oil

• protecting our environment

• paying you back the entire loan with appropriate oversight and returns

These actions, combined with a modest rebound of the U.S. economy, should allow us to begin repaying you in 2011.

In summary, our plan is designed to provide a secure return on your investment in GM's future. We accept the conditions of your loan, the commitments of our plan, and the results needed to transform our business for long-term success. We will contribute to strengthening U.S. energy and environmental security. We will contribute to America's technical and manufacturing know-how and will create high quality jobs for the "new economy." And we will continue to deliver personal mobility freedom to Americans using the most advanced transportation solutions.

We are proud of our century of contribution to U.S. prosperity and look forward to making an equally meaningful contribution during our next 100 years.

Zembonez · December 8, 2008

Propaganda R us!

However, I wish them well. I want to still be able buy a new GM truck in 20 years!

rvsahs · December 8, 2008

Propaganda R us!

However, I wish them well. I want to still be able buy a new GM truck in 20 years!

Or a red 'Vette!

faisal · December 9, 2008

Propaganda R us!

However, I wish them well. I want to still be able buy a new GM truck in 20 years!

+1

i will start my own car company

unit731 · December 9, 2008

Perfect Storm

Book by: Sebastian Junger

Movie filmed in Gloucester, Massachusetts USA

pennzoil29 · December 10, 2008

Perfect Storm
Book by: Sebastian Junger

Movie filmed in Gloucester, Massachusetts USA

Good movie

mkelly · December 10, 2008

Perfect Storm
Book by: Sebastian Junger

Movie filmed in Gloucester, Massachusetts USA

Good movie

Horrible movie!

I'm not sure how movie makers can put "Based on a true story" on a fictional movie

Oh yeah.... I mostly agree with the letter, however I dont blame gm for focusing on suv's and trucks. That is where they made money and that is what the consumer wants.

gave20 · December 10, 2008

Unfortunately, along with all Americans, we were hit by a "perfect storm."Over the past year, all of us have had to deal with volatile energy prices, the collapse of the U.S. housing market, failing financial institutions, a stock market crash and the complete freezing of credit. We are in the midst of the worst economic crisis since the Great Depression.

okay, and I'm sure the 30 year of dumbass union contracts has nothing to due with the current "crisis". Funny how I remember a few months ago the insurmountable payouts in health care and pensions GM was never going to make. I believe that's what start the "American revolution" to restructure the company, not a credit freeze.

Just like you, we have been severely impacted by events outside our control. U.S. auto industry sales have fallen to their lowest per capita rate in half a century. Despite moving quickly to reduce our planned spending by over $20 billion, GM finds itself precariously and frighteningly close to running out of cash.

I haven't really been effected by this "major" credit crisis, of course I don't live on borrowed money and looked long and hard before investing my money. Maybe Wagoner and GM should have done the same instead of paying people 80% of the salary not to work.

Specifically, we are committed to:

• producing automobiles you want to buy and are excited to own

• leading the reinvention of the automobile based on promising new technology

• focusing on our core brands to consistently deliver on their promises

• streamlining our dealer network to ensure the best sales and service

• ensuring sacrifices are shared by all GM stakeholders

• meeting appropriate standards for executive pay and corporate governance

• working with our unions to quickly realize competitive wages and benefits

• reducing U.S. dependence on imported oil

• protecting our environment

• paying you back the entire loan with appropriate oversight and returns

If you were committed to these ideals you wouldn't need to borrow the money from me the taxpayer. And if you were so interested in building more fuel efficient cars you would have done that 10 years ago instead of wasting money on 15 different SUV models that offered huge small blocks. What about the Camaro and GTO projects that were complete money wasters? You mean the GM suits couldn’t see that Honda and Toyota, whose line is 80% fuel efficient cars didn't see a drop in sales and during high gas times saw an increase in sales? You couldn’t read the markets when you had money and could do something about it now what make you think you can use this penance and turn things around now?

Frankly Wagoner you and your board of director cronies are jackasses. You laughter at Lutz when he suggested building the volt, that GM needs to look to the future, the future of high gas prices and foolishly you said “but people want SUV’s” . Well they did until we hit $4/gal for gas, now you don’t have the money to finish the volt and when you do get the money will price the car right out of existence. Does quadrasteer ring a bell?

These actions, combined with a modest rebound of the U.S. economy, should allow us to begin repaying you in 2011.

Bullshit, what guarantee does the American people have that you won’t take the money and in 3 months file for Bankruptcy? And if this bailout was such a good thing was doesn’t Cerberus, an investment company, bail out it’s own Chrysler?

VMax2007 · December 10, 2008

Looks like Red Ink Rick is taking a page from Lee Iacocca in 1980 with the same reworded "I am sorry we screwed you" letter. If GM can pull through, it does not look good for us full size pickup guys. Hope the Federal Carzar sees value in full size truck production and is not a greenie. Kind of scary thinking that Ford might be the only US based car company not under Federal Carzar control and can still choose its own product mix.

The only morons who think that full sized trucks are gonna become extinct are the ones that either do not own or do not NEED one.

How the hell do you think people are going to pull/haul stuff if full sized trucks are not available? DUH!!!

FULL SIZED TRUCKS ARE NOT GOING ANYWHERE!!!!

wlvrn1215 · December 10, 2008

Looks like Red Ink Rick is taking a page from Lee Iacocca in 1980 with the same reworded "I am sorry we screwed you" letter. If GM can pull through, it does not look good for us full size pickup guys. Hope the Federal Carzar sees value in full size truck production and is not a greenie. Kind of scary thinking that Ford might be the only US based car company not under Federal Carzar control and can still choose its own product mix.

The only morons who think that full sized trucks are gonna become extinct are the ones that either do not own or do not NEED one.

How the hell do you think people are going to pull/haul stuff if full sized trucks are not available? DUH!!!

FULL SIZED TRUCKS ARE NOT GOING ANYWHERE!!!!

+1

Draenor · December 10, 2008

There not going anywhere, but they will get hit hard. I'm sure the 'Czar' would cut HP and TQ output and raise emmision standards.

Draenor · December 10, 2008

*Site anomaly*

*deleted double post*

Zembonez · December 10, 2008

Looks like Red Ink Rick is taking a page from Lee Iacocca in 1980 with the same reworded "I am sorry we screwed you" letter. If GM can pull through, it does not look good for us full size pickup guys. Hope the Federal Carzar sees value in full size truck production and is not a greenie. Kind of scary thinking that Ford might be the only US based car company not under Federal Carzar control and can still choose its own product mix.

The only morons who think that full sized trucks are gonna become extinct are the ones that either do not own or do not NEED one.

How the hell do you think people are going to pull/haul stuff if full sized trucks are not available? DUH!!!

FULL SIZED TRUCKS ARE NOT GOING ANYWHERE!!!!

+1

.1 also...

BUT

I have to agree with old Won on the point that it doesn't look GOOD for truck owners. If the emphasis is on making crappy tree huggin "green" vehicles for frikkin liberal hippie scumbags that contribute virtually nothing useful to society, the R&D for trucks is going to suffer. Of course they will still make them (profit profit profit) but they may scale back on what is available.

and I HATE liberal tree huggin' hippie scumbags that contribute nothing useful to our society and would like to see them all die in a horrible tofu accident.

2000DV4.8 · December 10, 2008

There not going anywhere, but they will get hit hard. I'm sure the 'Czar' would cut HP and TQ output and raise emmision standards.

Which, in reality, wouldn't be that bad. Would we all like to have a 400hp Denali, or a DMax with 660 ft-lbs of torque? I know I would. Do the vast majority of us need that much power? Absolutely not.

New regulations might make it take longer to get the boat to the lake, might make it take longer to tow the travel trailer from point A to point B, but does anyone really need to be towing 10,000 lbs at 80 miles/hour? I'd say no.

Everybody did fine for years with trucks that weren't oozing with power, and we'll be able to deal with it again if need be. Is it what I'd like to see? Hell no, but we have to make due with what's given to us.

2000DV4.8 · December 10, 2008

and I HATE liberal tree huggin' hippie scumbags that contribute nothing useful to our society and would like to see them all die in a horrible tofu accident.

Hey now, tofu ain't that bad...