This past Friday, I was seated in a long-lead briefing for another auto manufacturer when the whispered word was passed down the line of seated journalists: “There’s an emergency conference call regarding Saab in ten minutes.” Not too long after that: “Saab is dead. There’s no deal.” All around me, I saw men with their heads cradled in their hands, though I could not tell whether it was from sympathy, misery, or simple world-weariness. From the seat next to me, a sorrowful, poignant comment: “I don’t want to live in a world where the ES350 is a best-seller and Saab is dead.”

What a perceptive statement! For there were more than fifteen long years where people willingly deluded themselves into believing that this world was one where the Camry-by-Lexus could rule the sales roost and, yet, Saab could live. With evidence to the contrary literally surrounding them, Saab’s incompetent, careless stewards at General Motors continued to push the lie: Saab is premium, Saab is luxury, Saab can compete with the Japanese and Germans on equal ground. By the time Saab’s lifeless body finally thumped against the ground, the story had assumed the mantle of tragedy. And like most tragedies, it began with a misunderstanding.
Continue reading Avoidable Contact #29: Lexus killed Saab, but GM let Saab die.

Blame management, the unions, asymmetrical trade regulations or tough competition — because the blasé love to blame. But no matter where your armchair analysis pins responsibility, the fact is that America’s once-proud R&D and manufacturing powerhouse has been reduced to bankruptcy — a fate that almost no other government has allowed to befall their automakers.

The President is priming the country for a bankruptcy that will affect assembly workers, suppliers, dealerships, and an already economically battered Midwest. We’ll liveblog his comments after the jump.

Continue reading Liveblog: Obama primes a post-industrial America.

For those who are trying to pick the important details out of the GM restructuring stories flying around today, here’s what we know so far:

(Updated 5:00 p.m., 4/27)
– Pontiac is to be phased out entirely by the end of 2010; Hummer and Saturn will be phased out by the end of 2009; Saab will hopefully be sold off shortly, and it seems GM is fairly confident this will happen.
– The G8 will be gone as of the end of this model year (2009).
– The G6, G3, Solstice and Torrent will slowly disappear through the 2009 and 2010 model years.
– The Vibe will likely be the final production vehicle in the lineup.
– More than 20,000 layoffs are expected, though it’s not known yet which divisions (obviously, Pontiac-related is a safe bet here) and facilities will be impacted.
– There will be an “acceleration” of plant idling and shut-down along with a significant reduction in the dealer network — reportedly up to 40%.
– The restructuring plan will result in the taxpayers and union trusts owning a hefty chunk of General Motors.
– Bankruptcy is still not off the table.
– There is currently no viable offer on the table for the Saturn dealership network.

Click through for more.

Continue reading Quick Hit — GM Restructuring