GM lost $5 bln in the 4th quarter

[Wong & Owens]

I'm thinking about buying a 2006 Impala SS.

 

Anyone know anything about it?

 

It's OK, from what I've read/heard.

 

What Edmunds.com Says

Significant changes for 2006 bring the Impala a few steps closer to class leaders in terms of power, features and refinement, but the car's aging platform is still a liability against competitors like the Chrysler 300 and Honda Accord.

 

Pros

Six-passenger seating availability, powerful and efficient engine choices, clean interior styling, standard side curtain airbags.

 

Cons

Soft suspension and vague steering detract from handling dynamics, SS has to put its 300 hp through the front wheels.

 

What's New for 2006

The Impala receives significant updates for 2006. On the outside, Chevrolet has altered the car's styling with new headlights, taillights and wheels. The SS trim also gets a unique grille this year. Inside, the 2006 Impala features updated audio systems, a redesigned instrument panel, new seats, standard side curtain airbags and an available fold-flat rear seat. Mechanical changes include a stronger body structure, retuned suspension geometry for enhanced stability and improved braking systems. There are also new engines for the Impala: a base 3.5-liter V6, an upgraded 3.9-liter V6 and a new 5.3-liter V8 for the SS trim, which replaces last year's supercharged V6. Finally, the lineup of trim levels has been shuffled slightly to accommodate a new luxury-oriented LTZ trim.

 

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Overview

 

 

Introduction:

The Impala was first introduced in 1958 as the top-of-the-line trim level of the Bel Air full-size coupe and convertible. A year later the Impala became a stand-alone model and its popularity skyrocketed with over 450,000 sold that year. For the '61 model year, the Impala ushered in an all-new design, and the 409 V8 and Super Sport package turned the Impala into GM's first true muscle car. Throughout the '60s, the Impala dominated the sales charts, culminating in 1965 when over 1 million were sold. The popularity of the smaller, midsize muscle cars slowly ate away at sales of the Impala, but it continued to sell in big numbers, registering as the best-selling car in America in 1973. The oil embargo of 1973 put a quick end to that for a while until a new, smaller and much lighter design debuted in 1977 that resurrected Impala sales to a respectable number once again.

 

The Impala nameplate languished in the early '80s, eventually getting dropped in 1986 in favor of the Caprice designation. A revival of sorts occurred in 1994 when the Impala SS name was used again, this time for a high-performance version of the Caprice sedan. Sporting a monochrome paint scheme, an LT-1 V8 and bucket seats, the '94-'96 Impala SS recaptured the spirit of the original SS models and continues to be highly sought after today. The demise of the Caprice after the '96 model year meant no more Impalas once again until four years later when the current model arrived for the 2000 model year.

 

With front-wheel drive, the current Impala isn't exactly a tribute to the past, but it does continue the tradition of large, affordable Chevrolet family sedans. The move to smaller, more efficient V6 power plants gives family sedan buyers enough power when they need it while still providing respectable mileage -- never one of the Impala's strong points in previous generations. The fact that the base Impala can seat six in a pinch places it in the thinly populated category of large sedans.

 

Significant changes for 2006 bring the Impala closer to today's buyers needs. An enhanced structure and wider track promise improved driving dynamics, while fresh interior and exterior styling give it a more modern appearance. Changes under the hood include a new 3.5-liter V6 with 211 hp, and a 3.9-liter version that makes 240 hp (the same as last year's supercharged SS). And that supercharged V6 has been dropped in favor of a 303-hp V8 for the performance-oriented SS model. These changes are certainly welcome, as we haven't been overly impressed by the current-generation Impala in years past. Though still not as refined as the Honda Accord or Toyota Avalon, or as nimble and stylish as the rear Chrysler 300, the Impala is a popular seller and should be a decent choice for those in need of an affordable sedan with a big interior in 2006. We do, however, recommend that you test-drive some of its better qualified competitors before making a decision.

 

 

For Pricing information, see our Pricing page.

 

Body Styles, Trim Levels and Options:

Available as a sedan only, the Impala comes in four trim levels -- LS, LT, LTZ and SS. LS models include 16-inch wheels; a front bench seat; air conditioning; power locks, mirrors and windows; a tilt steering wheel; power driver seat; and keyless entry. Moving up to the LT model adds remote vehicle start. The LTZ includes heated leather bucket seats, a Bose audio system, 17-inch alloys and an auto-dimming rearview mirror. The SS comes with monochromatic exterior paint, a performance suspension, 18-inch wheels and a rear spoiler.

 

For more Style information, see our Compare Styles page.

 

Powertrains and Performance:

The standard engine is a 3.5-liter V6 engine that produces 211 horsepower and 214 pound-feet of torque. Available on the LT and standard on the LTZ is a 3.9-liter V6 with 240 hp and 242 lb-ft of torque. All models employ a responsive four-speed automatic transmission that sends the power through the front wheels. The SS has a 5.3-liter V8 making an impressive 303 hp and 323 lb-ft of torque. To handle the extra power, the SS uses a heavy-duty version of GM's four-speed automatic.

 

For more Performance data, see our Specifications page.

 

Safety:

Occupant safety is a big selling point for the Impala. In crash tests conducted by the National Highway Traffic Safety Administration (NHTSA), the current-generation Impala earned five stars (out of five) for driver and front-passenger protection in frontal impacts, and four stars for side-impact protection. In frontal offset crash testing, the Impala earned a "Good" rating, the highest possible. Antilock brakes and traction control are standard on the LTZ and SS, and optional on other models. Side curtain airbags are standard on all Impalas.

 

For more Safety information, see our Safety page.

 

Interior Design and Special Features:

As one of the few six-passenger sedans on the market, the Impala does have an edge on the competition when it comes to interior space. The SS model has metallic interior trim, while all other models feature wood grain trim. Despite its traditional personality, the Impala offers contemporary features like a Bose audio system and an input jack for portable music players. Trunk capacity is a generous 18.6 cubic feet.

 

For more Interior Features information, see our Specifications page.

 

Driving Impressions:

The V6 engines offer a likable blend of power and fuel-efficiency, while the V8 offers serious off-the-line thrust. Even with this year's stiffer structure, handling is not among the Impala's strengths due to its soft suspension and vague steering. However, plenty of people will appreciate the big sedan's compliant ride quality. While the SS model may be appealing to power-hungry buyers, installing a V8 of this size in a front-wheel-drive car invariably results in torque steer and a nose-heavy feel. Our recommendation? Stick with the better balanced LTZ and its plenty powerful 3.9-liter V6.

[southsider2k5]

GMs annual board meeting is taking place right now in Detroit, and they have taken a few actions to try rectify their balance sheet problems. For one, I never realized how big the dividend that they paid out was.... Also the CEO is taking a 50% paycut.

 

General Motors Corp. said Tuesday its directors voted to halve the company's $2 annual dividend, a move to conserve cash, and similarly slash its chief executive's compensation by 50%.

 

GM (GM: News, Quote) also said Tuesday it was restructuring its pension plan for salaried workers. GM also will revise its salaried-retiree health care benefits to cut its liability by $4.8 billion before taxes.

 

The shares rose about 3.2% in pre-open trading on Instinet to $24.09.

 

The lowered dividend reduces the automaker's cash outlay by $565 million a year. The company will pay out 25 cents a share on March 10 to shareholders of record on Feb. 16.

 

A number of Wall Street analysts had expected GM to cut the payout. The $2 dividend indicated a yield on GM stock of more than 8%, the highest of any Dow Jones Industrial Average component.

 

The company also plans to restructure its U.S. pension-benefit plan for salaried workers and halve the compensation for outside board members.

 

GM also plans to reduce certain executive salaries, most notably Chairman and CEO Rick Wagoner's compensation.

 

Yesterday, GM said it named Jerry York, an aide to investor Kirk Kerkorian, to the board. Kerkorian's Tracinda Corp. is GM's largest investor.

 

Deutsche Bank analysts said the addition of York and other turnaround experts could hasten GM's resizing, given that he has openly questioned the company's brand and model strategy.

 

"We continue to question how GM can maintain a business in which 40% of North American volume is directed to fleets and GM's own employees," according to Deutsche Bank.

 

While York's January appeal gives GM's dividend cut the appearance of responsiveness to shareholders, "what the cut really reflects is a degradation of the long-term outlook," according to Lehman Brothers.

 

The move also "lowers the likely yield-supported floor for the stock during the possible next wave of pessimism."

 

During the Detroit auto show last month, York said additional moves are necessary to stem the flow of red ink, including cutting the number of brand offerings as well as top-to-bottom payroll reductions. See full story.

 

Kerkorian's Tracinda currently maintains a 9.9% stake in GM. York will succeed Merrill Lynch (MER: News, Quote) Chairman and CEO Stanley O'Neal on GM's board.

 

"Jerry brings years of business experience and knowledge of the automotive industry to the GM board," according to a statement Monday from Chief Executive Rick Wagoner.

 

York serves as a director of a number of companies, including Tyco International (TYC: News, Quote) , Apple Computer (AAPL: News, Quote) and Exide Technologies. (XIDE: News, Quote)

 

O'Neal said increasing time demands at GM were becoming difficult to meet in light of his responsibilities at the brokerage giant.

 

General Motors, plagued by losses in its North America auto business, said its total loss for the fourth quarter of 2005 ballooned to nearly $5 billion. See full story.

 

York has said Tracinda would consider stepping up its share count if GM takes the appropriate steps to curb costs.

 

GM shares closed

[samclemens]

the reason for the crisis: unions.

 

it costs a minimum of $35 an hour in health benefits alone for a button pusher in a factory. i know this for a fact. how in the hell is a company supposed to survive when they have to pay people that much for a factory job?

 

bottom line, the UAW has been absolutely raping and pilaging every last dime they could squeeze from GM. and now they are paying for it.

 

you reap what you sow, socialists. and im a MI resident who knows people who were laid off, and i still say that.

[Rex Kickass]

I highly doubt that health insurance benefits are valued at $70,000 per worker annually.

[Balta1701]

$35 an hour...for 1 button pusher...times 40 hours per week, times 52 weeks in a year....so you're telling me that GM's health plan costs $72,000 a worker?

 

Um, something tells me you're just a wee bit off in that number.

[Balta1701]

I highly doubt that health insurance benefits are valued at $70,000 per worker annually.

Congrats...beat me by that much...

[samclemens]

$35 an hour...for 1 button pusher...times 40 hours per week, times 52 weeks in a year....so you're telling me that GM's health plan costs $72,000 a worker?

 

Um, something tells me you're just a wee bit off in that number.

 

have heard it from the horses mouth, a full UAW member who works at a saginaw plant. he also believes that the CEO of GM should make as much as the lowest paid employee; that every employee should be paid the same- does that ideal remind you of a economic system that failed in the early '90s?

 

edit: i dont find it unfeasible considering the profit GM makes off each car that is sold to a distributor.

Edited February 8, 2006 by samclemens

[NUKE_CLEVELAND]

My accounting professor told us an interesting factoid about GM in class tonight. Apparentely, there is a program in place where when a GM employee gets laid off they are paid full wages until they find another job or are re-hired by the company itself.

 

 

 

 

Cost of this rediculously generous severance plan?

 

 

400 million dollars a year.

 

 

 

Small wonder they're hemmoraging money when they make stupid management decisions like this.

[YASNY]

the reason for the crisis: unions.

 

it costs a minimum of $35 an hour in health benefits alone for a button pusher in a factory. i know this for a fact. how in the hell is a company supposed to survive when they have to pay people that much for a factory job?

 

bottom line, the UAW has been absolutely raping and pilaging every last dime they could squeeze from GM. and now they are paying for it.

 

you reap what you sow, socialists. and im a MI resident who knows people who were laid off, and i still say that.

 

I the whole medical-insurance-pharmacutical-medicare racket has to be considered as partly to blame for this. The whole f***ing industry is set up to suck your life savings away from you as you are dying. There are pros and cons to unions. We'd be in deep s*** if the unions didn't exist, as in we wouldn't be making s*** in the work force. And you watch, if the current trend of weakening unions continues, the standard of living for the average American will decline.

[southsider2k5]

The estimates that I read were $1500 per car goes to cover health insurance for the employees. I don't know how that translates hourly, but I don't see it being that high...

 

But I also did hear that the Union is refusing anymore concessions to the company, dispite the mounting company losses. I wonder if that means if the company were making record profits, instead of record losses, if they also would be refusing raises and better benefits?

[Rex Kickass]

I the whole medical-insurance-pharmacutical-medicare racket has to be considered as partly to blame for this.  The whole f***ing industry is set up to suck your life savings away from you as you are dying.  There are pros and cons to unions.  We'd be in deep s*** if the unions didn't exist, as in we wouldn't be making s*** in the work force.  And you watch, if the current trend of weakening unions continues, the standard of living for the average American will decline.

 

We're already there in the White Collar world. People are working for less, longer hours and fewer benefits. I have a decent paying job, but no benefits at all. My employer might not be spending a s*** ton of money to insure me which is good for him, but I'm a 28 year old guy who has to spend 200 dollars a month to insure himself if I want insurance. I worked for a company three years ago that posted record profits and two weeks later retroactively took my free (and relatively crappy) health insurance away and started charging me $1000 a year (at the time a 5% pay cut.)

 

Do unions overstep their bounds on occasion? Of course. Are there some s***ty unions? Definitely. But without organized labor, a lot of workers would be left out in the cold.

 

Weekends: brought to you by the American Labor Movement.

[YASNY]

We're already there in the White Collar world. People are working for less, longer hours and fewer benefits. I have a decent paying job, but no benefits at all. My employer might not be spending a s*** ton of money to insure me which is good for him, but I'm a 28 year old guy who has to spend 200 dollars a month to insure himself if I want insurance. I worked for a company three years ago that posted record profits and two weeks later retroactively took my free (and relatively crappy) health insurance away and started charging me $1000 a year (at the time a 5% pay cut.)

 

Do unions overstep their bounds on occasion? Of course. Are there some s***ty unions? Definitely. But without organized labor, a lot of workers would be left out in the cold.

 

Weekends: brought to you by the American Labor Movement.

 

Wow. We agree on something.

[Balta1701]

Meanwhile...while GM can't figure out why revenues are going downhill so they go after the Union...Toyota is posting record profits, up 34% or so over last year. And roughly 44% of the cars they sold in north america last year were made in...North America.

 

As a great man once said..."I believe that has some significance for our problem."