RE: [DML] DMCH to build Pontiac Solstice?

["Michael Substelny" <msubstel@xxxxxxxxxxxxx>]

I don’t necessarily agree, Mike.  We do not have the numbers in front of us.

 

I believe that getting the parts made and assembled is possible.  I believe advertising, financing, and warranty can also be done without GM.  Yes, DMC cannot assume the same sales rate would continue; they would need to come up with new forecasts.  This is exactly the sort of thing that businesses do when contemplating an acquisition.

 

The real limit may be dealerships.  IMO John Z. DeLorean worked a miracle when he came up with a dealer network for his car back in the 80s.  It will take a similar stroke of brilliance to make this work.

 

-          Mike Substelny

VIN 1280

Cheering for the success of this bold idea.

 

 

 

From: dmcnews@xxxxxxxxxxxxxxx [mailto:dmcnews@xxxxxxxxxxxxxxx] On Behalf Of mike.griese@xxxxxxxxxxxxxxxx
Sent: Friday, October 09, 2009 1:53 PM
To: dmcnews@xxxxxxxxxxxxxxx
Subject: Re: [DML] DMCH to build Pontiac Solstice?

 

  

Taking on the Solstice would be the fast route to bankruptcy for DMC. Most cars built by auto companies are not entirely in-house designs. Interiors and HVAC systems come from Johnson Controls or similar outfit, electronics from Delco or Visteon, drivetrains would have to be sourced from somewhere, the factory may only be an assembly site - no body stamping or injection molding facilities would mean buying in parts from somewhere else. Then there are the issues with a dealer network, advertising, financing, warranty support (who covers warranty work for existing cars?), future development, change management, information technology, worldwide compliance, labor relations, and on and on. Plus, who is going to want to buy one of these once they have been cut loose from GM? You can't assume that the current sales rate would be maintained or that the current dealers would stay on board, since Saturn is closing down and Pontiac is disappearing as a marque.

--
Mike




 



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