Hang On Everybody! "A Bridge to a Bridge?"

It is my belief that December 2008 is going to prove to be a real history maker. With GM, Ford and Chrysler headed back for another round of abuse by legislators, these American icons are going to have to prove they are really serious about their turnaround plans. We've already briefly touched on the idea that GM might jettison several brands and I have to agree its probably the right move. Look at what we have now in the crossover segment: Buick Enclave, Saturn Outlook, GMC Acadia and Chevrolet Traverse. There is just no possible way to explain this in the face of the current crisis. My opinion? At least two of these have to go. Now granted, so far we've only heard about Pontiac, Saab, Saturn and Hummer, but I really wonder if that is enough? I am just not convinced that Buick and GMC bring enough to the table to justify their existence, especially when Buick might be worth something to a Chinese buyer. GM would best be served with Chevrolet, Cadillac and potentially one other brand. Personally, I'm not ready to give up on Saturn. The brand now has a strong product line and it just needs some to get the message across--that kind of thing doesn't happen in one or two years. Of course, killing brands is hugely expensive. Perhaps GM can argue for assistance in winding down these brands?

Now there is talk that instead of a $25 billion bridge loan, what automakers might get is a loan that keep automakers in business until February when the new administration is in place, I like to call it a "Bridge to a Bridge." This gets the current group of lawmakers off the hook without committing massive funds (and taxpayer wrath) and they aren't responsible for allowing the complete collapse of the domestic auto industry. It also allows manufacturers to start to enact some of the things that they'll be promising this week. Everybody regroups in February, the automakers get a report card and if it looks good they'll probably get more cash at that time. Sounds like a plan to me!