All Entries Tagged With: "Economy"
The Paradox of Thrift
Two members of the press at work…
By Gunnar Heinrich | IMG The Flagellants by Pieter van Laer
THERE’S a lot of loathing of self and others happening in the media at present.
I’ll explain how this pertains to cars in a sec…
Much of their vitriol has to do with money; the lack of it for some; the depraved squandering of it for others. For most magazines and newspapers and their salaried staff, it’s definitely the former.
Average advertising revenues fell faster in 2008 than Chrysler’s December numbers which means that executives at every business that makes dough by printing hardcopy – from the New York Times to Vogue to Car & Driver - are casting people off left and right. And like any good ship captains, these corporate heads make sure that they’re the absolute last to leave a sinking ship.
So understanding that the fourth estate is lacking a foreseeable future, what entitles you or anyone else to have one, either?
To Advance, The General Falls Back
By: Christopher P. Davis
I’M going to throw it out there: GM Makes Good Cars – really.
Sure, most of them are not deluxe, but they perform the basic job of a car – the movement to and from points A and B – with admirable dispatch.
I’ve recently experienced a broad sampling of GM’s brands, and while none could waft quite as professionally as the LS460 that whisked me and three others to golf last week, they did perform commendably well and far better than anything Detroit ever made in the 90s.
I’ve rode in a number of Cadillac Escalades, and while I wasn’t obligated to feel the pain of shelling out at Shell, I can say that they ride smoothly, their cargo capacities are voluminous, and they’ll tow your powerboat or horse trailer with aplomb.
Even the entry-level Chevy Trailblazer has its merits.
Its styling is that of a traditional SUV – if you want to move something, you put in a box. The Trailblazer I took for a spin had an impressive Bose Sound System, and rather quick to start heated seats. Its Vortec engine cruises around 65 at a steady 1700rpm – good for the powerplant’s longevity.
With this knowledge in hand, it’s hard to believe that GM’s Common Stock has fallen to levels unseen since the days when we liked Ike.
Sure, they bled billions last quarter. And, yeah, the unions’ demands have a lot to do with the fiscal pressure GM’s under.
Add fuel prices, globalization, and the fact that Ike wouldn’t recognize the American way if he were planted in Moraine, Ohio and what you find is a company that’s struggling to live despite delivering on quality.
General Motors Corporation for too long ran successfully, if unilaterally, on the premise that when Joe America worked his way up the corporate ladder he would simultaneously work his way up through GM’s brands. You’d start out with a Chevrolet and work you hardest for the boss’ Cadillac.
GM thrived in the white picket-fence Leave it to Beaver era.
Sadly, that was then when GM owned the American market. Today, it short term leases an American time-share.
Recognition has hit the General and as such Detroit has made some steps towards the 21st century; including axing Oldsmobile, and starting the (slow) shift towards fuel efficiency. But, their biggest step yet to be taken is to convince a Shell-shocked public that GM is moving on from the glutinous 90s.
Cars like the Chevy Volt, Escalade & Tahoe Hybrids, and some of their upcoming compacts are changing the General’s look for the Greener.
They need to and will (Because no matter what any nihilistic pundit says, GM isn’t going anywhere) keep up this progressive track in the coming years. Once the image of everybody and there brother driving a Suburban – and getting a couple gallons to the mile leaves GM, the crucial 18-35 market will be interested.
But until then Tokyo will advance, and Detroit will retreat.
In this week’s Barron’s Randall W. Forsyth wrote, “Barron’s continues to think that the General, armed with an array of competitive, high-quality offerings and reduced labor costs, will come back.”
So I guess I’m not the only one. The resurgence of GM will take time. But come it will. And why not? GM makes good cars.
[Linked: ADL Archive | Barron's]
