GM Open Letter to the American People

As General Motors awaits a favorable response from the U.S. government to its request for a survival loan, they have written us a letter.  It is accessible to all at their GM Facts and Fiction website.  Or, you can read it here:

GM’S COMMITMENT TO THE AMERICAN PEOPLE

We deeply appreciate the 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 it, what we’ll do with it and how it will make GM viable for the long term.
For a century, 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 250 million cars and trucks on U.S. roads today, more than 66
million are GM brands — nearly 44 million more than Toyota brands.  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 have 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 pick-up 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 like the
Chevrolet Malibu and Cadillac CTS are widely heralded for their appeal; our new
products are nearly all cars and “crossovers” rather than pick-ups and SUVs; our factories
have greatly improved productivity and our labor agreements are much more competitive.
We are 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 determined to
reinvent the automobile with 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, after we reached transformational agreements with our unions, industry
analysts were forecasting a positive GM turnaround.  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 we have all faced 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.

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 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 jobs at risk and deepen our recession.  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 Dec. 2, 2008, detailing our commitments to ensure our
viability, strengthen our competitiveness, and deliver energy-efficient products.
Specifically, we are committed to:

• produce automobiles you want to buy and are excited to own
• lead the reinvention of the automobile based on promising new technology
• focus on our core brands to consistently deliver on their promises
• streamline our dealer network to ensure the best sales and service
• ensure sacrifices are shared by all GM stakeholders
• meet appropriate standards for executive pay and corporate governance
• work with our unions to quickly realize competitive wages and benefits
• reduce U.S. dependence on imported oil
• protect our environment
• pay 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 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.

Corvette for Christmas?

Corvettes have frequently been given as Christmas gifts.  So what if they don’t fit under the tree!  The easy resolution is to place a scale model under the tree, while the new drivable beauty sits in the garage under a giant bow.

As a result, the parent Chevrolet dealership of CorvetteBlog has a nice selection of Christmas gifts this year.  We have a handful of 2008 models, and a larger selection of 2009 models.  The large gold bow is available at no extra cost, upon request.

If you are interested, please give this blogger a call at 1-888-875-0728 or comment on this blog with your contact information.  It will be kept private.

What Do GM’s Troubles Mean for the Corvette?

"Between dialing for dollars on Capitol Hill, dealing with PR flaps over corporate jets, getting the Volt to market, picking up the tab for decades of mistakes, the world financial crises, and just trying to keep the lights on, I doubt Rick Wagoner and Company have had much time to worry about a little deal like the Corvette.  But I have my concerns."

So wrote Matt Stone about the company that builds this beautiful 2009 Corvette ZR1 in a recent (11/27) Motor Trend Magazine editorial.

While we await the decisions to be made by those in Washington, D.C. next week (?), who have had an excessively large part in creating the troubles of the American automobile industry in the first place, you may enjoy reading Stone’s concerns.  Before you jump to the rest of his editorial, though, I just have to say: Why do I not hear anyone saying that the federal government is to blame because of its ridiculous mandates to create high gas mileage out of thin air?  For years and years, they have raised the CAFE level, requiring financial investment for technological development that profits did not allow.  Shame on that swamp on the Potomac!

"A few weeks ago, it was announced that several key players in the Corvette‘s existence will be "taking retirement" as of November 1.  They are Vehicle Line Executive Tom Wallace (program director and chief engineer), Gary Claudio (Corvette marketing guy), Ron Meegan (Chief Engineer for the LS3, LS7 and LS9 engines), and John Heinricy, (serious car dude, sports car racer, former C4 Chief Engineer, etc.).

"Previous VLE David Hill brought us the C5 and C6, and although the ZR1 came to market under Wallace’s watch, we never really saw what he could or would do with America’s Sportscar.  But he sure asked a lot of questions, and the right ones: "Should we do a mid-engined car?  Should we develop a dual-clutch gearbox?  Should we make the car lighter?  What sort of special editions should we do?"  Claudio exhibited the typical, never ending exuberance you’d expect of a marketing guy, but he loved his car and his job.  Meegan told me things about engines I never new, flew the flag overhead valves, and helped the latest versions of the Small-Block Chevy V-8 become as sophisticated as they have.  Heinricy is a legit performance car and racing legend, surely with Bowtie logos tatooed on his heart.

"Will the Corvette live on?  Yes, but there’s no question that its development will stutter, and likely be pushed back several years beyond the C7’s projected 2012 launch date.  Ongoing C6 technology development and such will slow, crawl, or may even stop altogether for the foreseeable future.

"I remember when Zora Arkus Duntov handed the Corvette over to his replacement, Dave McLellan, everyone said the Vette was dead.  But McLellan brought us the C4, impressive for its day, with a serious focus on handling that had never been achieved before.

"The new VLE for Corvette is Gene Stefanyshyn, who was GM’s Global Rear Wheel Drive Vehicle Line Executive, and a major player in the engineering of the 2010 Camaro.  I know Gene; he’s a darn decent guy and a smart engineer who knows how to bring home a development program.  But does he have the heat for this assignment?  Does he have the vision (and will he have the team and the budget) to take the car forward?  This remains to be seen.  It also disturbs me that, as I understand it, Stefanyshyn will retain responsibility for other performance nameplates, and not be focused solely on the Vette, as have been his predecessors most of the time.

"While we’re at it, I say the Corvette really needs to leap ahead from a design and technology standpoint.  Stop copying Ferrari (360 Modena headlights, the ZR1‘s peek-a-boo engine window just like on the F430, except it looks down on a piece of plastic, not the actual engine or blower). Give the car a world class cabin.  And don’t make its butt any bigger than it already is.  Celebrate the Vette’s wonderful history without being beholden to it. Don’t follow, Gene – lead.

"I for one hope things right themselves, and the Vette can continue on the road is has blazed for 55 years.  But there are bumps ahead, and the ride will be rough for a while."

[ Motor Trend ]

More Rich & Famous ZR1 News

Keith from CorvetteBlogger reminded me that he had blogged about Mario Andretti‘s process of replacing his Z06 with a ZR1.  According to Keith, Mario is hoping to be the owner of car #500!

Another ZR1 buyer is Paul Teutul, Sr. of Orange County Choppers.  I hope he doesn’t convert it into a cycle!  That would be some Corvette Convertible, wouldn’t it?  Paul looks like he will enjoy the ZR1 just like it is, though, right?  See Paul’s 2006 Z06 here, and his ZR1 past the jump.

Who are the other 350 or so who have bought them?