| In the news: General Motors Corp. Vice president | | | | cost burden that we've gotten." Plus the rising |
| Chairman Bob Lutz has said Tuesday at Geneva | | | | cost of pensions and health care for retirees and |
| that intense competition and the growing | | | | employees has become a burden that could very |
| overcapacity could threaten the existence of one | | | | well sink one of the traditional Big Three. Lutz also |
| of Detroit's Big Three automakers. He also added | | | | added, "In today's fiercely competitive |
| that the current market conditions are conspiring | | | | environment, where every bit of value in the car |
| to eliminate one of Detroit's automaker, "if you | | | | counts, you cannot prevail in this business if you |
| project out present trends, you can only come to | | | | have a $2,000 cost disadvantage versus your |
| the conclusion that it's going to be an extremely | | | | closest competitors." |
| difficult environment". | | | | Lutz however decline to answer question relating |
| Lutz has also made it clear that in his opinion, | | | | to the topic GM purchasing Chrysler. News has it |
| General Motors is more likely to survive | | | | that senior executives at GM and DaimlerChrysler |
| compared to other automakers like Chrysler and | | | | have held talks since December about GM's |
| even Ford Motor Co. He said, "right now, we're in | | | | interest in purchasing Chrysler. |
| the best position since we're approaching the end | | | | Although, Lutz has refrained from discussing the |
| of the beginning of the transformation of GM." | | | | possibility of a GM-Chrysler deal, he contrasted |
| Analyst Bradley Rubin of BMP Paribas in New | | | | the benefits of a domestic auto merger citing |
| York also agreed that there is the possibility of a | | | | why GM has rejected last year the possible |
| shakeout. He said, "It's true. It is confusing. There | | | | alliance with foreign rivals Nissan Motor Co. and |
| are a lot of products out there." | | | | Renault SA. Lutz explained, "Generically, synergies |
| General Motors-world's largest automaker and | | | | are easier to get in the same geography than |
| manufacturer of the popular range of GM | | | | across geographies. That was the problem with |
| mirrors-- after losing $10.6 billion in 2005 has | | | | the Renault-Nissan. What sane auto company |
| embarked on a massive turnaround plan that | | | | would sign up for that?" |
| included the shedding of 30,000 jobs, launching | | | | And just like Lutz, GM Chairman Rick Wagoner |
| numerous new products and selling off assets to | | | | have decline from commenting on the issue on |
| raise funds. On the other hand, both Ford and | | | | Chrysler. He told reporters at the Geneva show, |
| Chrysler are undergoing major restructuring as | | | | "There's nothing we want to say about that." He |
| well. Unfortunately, for the three automakers | | | | also stressed that GM would never enter into a |
| they have consistently failed to increase their | | | | deal just to stay as the number one global |
| profit and sales in their home market. | | | | automaker ahead of Japan's Toyota Motor Corp. |
| According to Lutz, "We cannot, as an American | | | | "That wouldn't be the motivation for any alliance. |
| auto industry, survive long-term with the legacy | | | | But we like to win and we'll keep fighting for it. |