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4/1/2005

Lutz Sets Record Straight - GM/Ford Share Slips

Filed under: — GM Guy @ 5:47 pm

A little over a week ago business pages in newspapers across the country, as well as trade rags like Automotive News and consumer mags like Autoweek all ran stories about GM’s Co-Chair Bob Lutz’s statement that depending upon future sales results, the General might actually “kill-off” either Pontiac or Buick. This week on his GM blog Fastlane, he set the record strait and backed way off that statement.

Many of you probably read something to the effect that “GM is considering shedding a brand.” Let me say it now, for the world to hear: No, we have no plans to shed a brand. Period.

To my ears, that was great news, I root for the General. But two items that showed up today portend not such good news for the home town boys.

In two different stories, related news shows that our domestic manufacturers have some extremely high hurdles ahead of them due to escalating gasoline prices and declining market share, due to, you guessed it, high gas prices!

NEW YORK (Reuters) - Regular gasoline pump prices in the United States may average as high as $2.50 by Memorial Day, shattering the records as futures prices climb to new peaks, analysts said on Friday.

U.S. retail gasoline is already running above $2.15 a gallon, well beyond last spring’s peak of $2.05, according to government and industry surveys.

&

DETROIT (Reuters) - General Motors Corp. (GM) and Ford Motor Co. (F) posted weaker March U.S. vehicle sales on Friday, losing further market share to Japan’s Toyota Motor Corp. <7203.T and Nissan Motor Co. (7201) as high gasoline prices hurt sales of fuel-thirsty sport utility vehicles.

The two biggest Japanese auto makers recorded double-digit sales gains and their best-month ever, as their aggressive expansion into new segments of the market and fresher lineup of cars and trucks wooed customers away from the U.S. auto makers .

The exodus by car buyers, out of U.S. brands and into those of their foreign rivals, is a worrisome trend for Detroit, where Ford and GM have been struggling to revive profits in their automotive operations.

I love big cars, always have, even though I have owned more than my share of Fiats, Mazdas and small BMWs. I drive a Pontiac Bonneville SSEI at the moment, and it does get about 23-26 mpg on the freeway, but on surface streets, where I drive the most, it struggles to return 12.5 per gallon of premium! That’s wasn’t fun at 2 bucks per, and will be dreadful if/when gas hits $3 later this season, and it most likely will! My lease is up in a month . . . what to get now? There’s a question for you!

[Update: 04/02]
Similar discussions can be found at True Talk Blog, where after meeting Bob Lutz at the Auto Show Tom asks, is there still time for GM to make a comback? While at Auto Muse, E.L. Eversman comments on how detructive soundbites can be.

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