GM buys out 50% of Buick Dealers in the USA

[aerohead]

No one has ever 'needed' a Buick, Pontiac, Oldsmobile, Opel, Holden, Hummer, or Cadillac, but in past times, and presently, those, and some of those divisions had/ have successful-enough marketing campaigns, that enough customers were / are parting with enough money to get their butts in those kinds of seats, such that the bean-counters were/ are comfortable gambling on keeping certain brands in the game.
It seems like that, if Buick can maintain some threshold bottom line, that it would be stupid to let it go, whether or not non-corporate dealerships are part of the calculus or not.
Mary Barra needs all the after-tax revenue she can get to keep GM in the game. All the legacy carmakers have REAL competition.
And the 'value-added' profit-making cars being used to underwrite the transition to BEVs, are in sales decline, which affects economies-of-scale, necessary for profits, creating a reverse-S-curve for ICE vehicle sales, eroding the revenue stream GM and others are depending on for all the capital-intensive investments which will be required to keep up with corporations which are spending zero on marketing, while selling carbon offsets to the legacy carmakers.
It's such a 'new' arithmetic, I don't see how some 'brands' will survive, nor their investors.
I hear that the 'ULTIUM' technology is now dead on arrival. GM is pulling back on 'expectations', reminiscent of EV1. The market may just move ahead with, or without them.
I'd be the last to know about board-room conversations.

[redpoint5]

If I were a legacy auto manufacturer, I'd be spinning off new brands that are free of union obligations, and sell direct to customer instead of the sleazy 3rd party stealership model. The first to adopt that strategy might survive, and the last will go away.

Legacy manufacturers lost the direct to customer sales battle. They're also manufacturing a ton in other countries, probably to avoid paying union wages. Everything they pretend to fight for is fail.

[freebeard]

If I were a legacy auto manufacturer, I'd be spinning off new brands that are free of union obligations, and sell direct to customer instead of the sleazy 3rd party stealership model. The first to adopt that strategy might survive, and the last will go away.

Sears Roebuck & Co Allstate?

https://en.wikipedia.org › wiki › Allstate_(automobile)
Allstate (automobile) - Wikipedia
The Allstate is an American automobile that was offered for sale through Sears, Roebuck and Co. during the 1952 and 1953 model years. It was a rebadged version of the Henry J, an automobile manufactured by the Kaiser-Frazer company during 1950-1954.

[Piotrsko]

If you dont pay management millions of dollars, thats millions of dollars you don't need to make profit for. Multiply by all the people at the company getting +million salary, divide by total production units, and what the vehicle costs to make after materials and labor costs is significantly reduced. Management is a cost, not a generation of profit

Seen studies where union labor reduces costs and improved quality, but not in 'Murica

[redpoint5]

Originally Posted by Piotrsko

Seen studies where union labor reduces costs and improved quality, but not in 'Murica

Ah, so that's what explains everything being made in China; the unions.

[cRiPpLe_rOoStEr]

Originally Posted by freebeard

Sears Roebuck & Co Allstate?

You made me remember when motor scooters were available at supermarkets in Brazil. I just don't know about warranty and technical support.

[Piotrsko]

I would believe that warranty was pretty limited, and repair was most likely a small shop just around the corner in your neighborhood.

Ltaiagffa, people either knew someone who could, or fixed it themselves.

[JSH]

Originally Posted by redpoint5

I've read the same from several sources; that EV sales are plateauing. On EV forums, there are some that believe Toyota is hosed because they are hopelessly behind in EV development, and there will be no ICE demand in 2 years

The sales data that we have today says that is take is wrong. Through the 3rd Quarter 2023 EV sales were up 50% vs 2022 and they were the fastest growing segment by far. What actually did happen is the the rate of growth dropped. In 2022 EV sales increased by 65% over 2021.

The other thing that has happened is that some automakers increased EV production too quickly - which lead to inventory sitting on dealer's lots for a bit instead of getting sold before they rolled of the transporter.

We should have 4Q production numbers in a week or so.

Tesla's number are in. They sold 455,000 vehicles in 4Q2023 and 1.8 million for the full year. (That means they missed their 50% YoY growth target for the 2nd year in a row)

Tesla also lost the EV sales crown to BYD in the 4th quarter. BYD sold 526,409 EVs in the 4th quarter and 1.6 million for the year. They also build 1.4 million PHEVs.

BYD is rapid expanding outside of China and I wouldn't be surprised if we see them in the USA by the end of the decade. They are currently scouting for a site in Mexico to build an assembly plant so they can avoid import tariffs.

Originally Posted by Piotrsko

If you dont pay management millions of dollars, thats millions of dollars you don't need to make profit for. Multiply by all the people at the company getting +million salary, divide by total production units, and what the vehicle costs to make after materials and labor costs is significantly reduced. Management is a cost, not a generation of profit

Seen studies where union labor reduces costs and improved quality, but not in 'Murica

Nope. Executive pay is WAY to high but it is a rounding error when it comes to an automaker's cost. Zero out the GM C-suite's salaries and you would save $12 a car. ($72 million / 5.9 vehicles)

[cRiPpLe_rOoStEr]

Originally Posted by Piotrsko

I would believe that warranty was pretty limited, and repair was most likely a small shop just around the corner in your neighborhood.

There were times when the only scooters known by Brazilian mechanics tended to be the Vespa and the Lambretta, yet a handful of small shops might've been selected to provide service.

[oil pan 4]

The last car I would ever buy would be a Buick ev.
A citron 2cv would be more appealing.