# GM and Chrysler 'viability plans'

**URL:** <https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285>\
**Category:** Great Debates\
**Created:** [February 17, 2009, 4:46pm UTC](https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285 "2009-02-17T16:46:05Z")\
**Posts on this page:** 7\
**Page:** 3

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**Author:** ![Tuckerfan](https://avatars.discourse-cdn.com/v4/letter/t/eada6e/32.png) [@Tuckerfan](https://boards.straightdope.com/u/Tuckerfan)\
**Post date:** [February 21, 2009, 1:28am UTC](https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285/41 "2009-02-21T01:28:30Z")

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> [@E-Sabbath](#):
>
> How can Saturn dealers buy the franchise if most of the parts are shared with other GM products?

The same way Newman and Altman were able to buy the rights to Avanti after Studebaker went under or that GM was able to buy the civilian production rights for Hummer or that Chevy dealers would buy the rights to keep producing Corvettes if GM went completely tits up: They’d make an offer and GM would accept it. What you’d end up with would be a much smaller car company that greatly resembled AMC.

Model changes would be less frequent, and while some parts would be wholly unique to Saturn, many others would come from a variety of other car makers. So, depending upon who was selling what in a given year at a particular price, you could end up with one year having a Ford started on a specific model, while the next year that model might have a Nissan starter, and the alternator could be built by someone else entirely. There _are_ some advantages to doing it this way. Primarily, you can pick the highest quality components available and aren’t tied to those produced by the parent company that might be junk.

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**Author:** ![Omniscient](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omniscient/32/3290_2.png) [@Omniscient](https://boards.straightdope.com/u/Omniscient)\
**Post date:** [February 21, 2009, 12:26pm UTC](https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285/42 "2009-02-21T12:26:28Z")

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> [@Tuckerfan](#):
>
> :dubious: I’m not aware of _any_ European auto factory being non-union, and while _some_ of Europe’s safety regulations aren’t as strict as those in the US, their **emission** standards have been more stringent than US regulations for more than a few years now.

I phrased it carelessly. The unions in Europe are much different and do not create the complications and legacy costs that the UAW does in this climate. Much of this is a side effect of UHC in Europe and the uniqueness of the US pension system. Long story short, it’s a hell of a lot cheaper for the US makers to build cars overseas than it is here, at least in the short term.

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**Author:** ![E-Sabbath](https://avatars.discourse-cdn.com/v4/letter/e/e19adc/32.png) [@E-Sabbath](https://boards.straightdope.com/u/E-Sabbath)\
**Post date:** [February 21, 2009, 5:18pm UTC](https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285/43 "2009-02-21T17:18:15Z")

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Yeah, I see them working that way, Tucker, but right now, I could _swear_ most of the factories are multipurpose. Eg, the Aura and the Malibu being made at the same plant. We’d need whole new product lines stat.

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**Author:** ![Hockey\_Monkey](https://avatars.discourse-cdn.com/v4/letter/h/a183cd/32.png) [@Hockey\_Monkey](https://boards.straightdope.com/u/Hockey_Monkey)\
**Post date:** [February 21, 2009, 5:34pm UTC](https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285/44 "2009-02-21T17:34:05Z")

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> [@E-Sabbath](#):
>
> Yeah, I see them working that way, Tucker, but right now, I could _swear_ most of the factories are multipurpose. Eg, the Aura and the Malibu being made at the same plant. We’d need whole new product lines stat.

The current Saturn lineup is funded through 2012 and will continue to be built in the same plants. There is a little time to sort things out.

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**Author:** ![Tuckerfan](https://avatars.discourse-cdn.com/v4/letter/t/eada6e/32.png) [@Tuckerfan](https://boards.straightdope.com/u/Tuckerfan)\
**Post date:** [February 21, 2009, 8:35pm UTC](https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285/45 "2009-02-21T20:35:07Z")

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> [@E-Sabbath](#):
>
> Yeah, I see them working that way, Tucker, but right now, I could _swear_ most of the factories are multipurpose. Eg, the Aura and the Malibu being made at the same plant. We’d need whole new product lines stat.

In addition to what **HM** ’s said, if GM intends to ditch the Saturn division, they’ll _also_ be getting rid of some plants. Maybe not the ones that are currently building Saturns, but they’ll _have_ to shed some plants, as they’re looking to cut production. And it makes more sense to completely ditch a plant, than to have several running at partial capacity. I doubt it’d be all the difficult to sort out, even if production of Saturns had to move to a different plant, since there is such a backlog of unsold cars at the moment. The bigger issue is how the UAW is going to handle the matter. Will they insist that the old GM contract apply to the new company, or are they willing to start from scratch? Based on my experience with UAW workers, I’m **not** optimistic that they’d be willing to make concessions, and even though the labor market is incredibly soft at the moment, you’re going to need skilled people to build those cars, which means one way or another, you’re going to _have_ to deal with the UAW (especially if the plant GM wants to part with is in a union friendly state like Michigan).

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**Author:** ![Palo\_Verde](https://avatars.discourse-cdn.com/v4/letter/p/65b543/32.png) [@Palo\_Verde](https://boards.straightdope.com/u/Palo_Verde)\
**Post date:** [February 22, 2009, 12:22am UTC](https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285/46 "2009-02-22T00:22:59Z")

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This was such a big deal in December, but now no one seems to be talking about it. There was a headline for one day about the carmakers’ request for money.

Are they going to get the billions they have asked for? When will they decide? Should they?

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**Author:** ![Imasquare](https://avatars.discourse-cdn.com/v4/letter/i/5f9b8f/32.png) [@Imasquare](https://boards.straightdope.com/u/Imasquare)\
**Post date:** [February 22, 2009, 3:51pm UTC](https://boards.straightdope.com/t/gm-and-chrysler-viability-plans/486285/47 "2009-02-22T15:51:41Z")

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> [@Westrogothia](#):
>
> Communist Sweden has decided its not their job to manufacture cars and have decided NOT to loan money to help SAAB.  
> So basically its sink or swim time for SAAB.  
> In all likelyhood this means that SAAB will have to do the Swedish equivalent of a Chapter 11.
> 
> Dunno if this makes it harder for GM.

Communist? :dubious:

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