Wednesday, April 30, 2014

Super Sport G8

General Motors is really in a world of hurt these days.

Troubles for the company became highly visible during the financial crisis of 2008, where obligations the company had, most notably poor union contracts not remotely associated with reality, were "discovered" as unsustainable.

Both George W. Bush and then candidate Barack Obama thought it prudent to offer the company bailout money, which GM gladly took.  Once Obama took office, after evaluation, his team orchestrated the making of a new GM and made "recommendations" for the company, which most notably included the elimination of the proud Pontiac Motor Division. 

In addition, bailout monies failed to make their way to the appropriated parties as outlined in 200 year contract law, with union partners and political partners reaping cash benefits.

GM, under the "direction" of the administration and viewed by most as "Government Motors" embarked on effort to produce high mileage low powered cars which were beneficial to environmental concerns.

In recent months sales are reported to have been slightly increasing.  However, as reported by ZeroHedge, reported actual sales "were largely irrelevant" due to channel stuffing of inventories with 805,769 units in inventory at months end in February of 2014.

Issues surrounding a faulty ignition switch has resulted in massive recalls and has company executives testifying before Congress. While the issue not restrictive to just one model, the Chevrolet Cruze appears to have, by far, the most noted cases, with tens of deaths having been reported.

In anticipation of a barrage of lawsuits as a result of the ignition defects, because the sales of most of the affected models took place before GM's 2009 bankruptcy, the company has filed a motion in US Court to bar lawsuits on pre-bankruptcy sales.

Shares of General Motors, GM:NYSE, closed at $34.48 per share, down almost 20% from its 52 week high achieved in mid December.

I have owned GM products all my life, and have been very pleased with the products, which were generally Pontiac cars and Chevrolet trucks.  However, due primarily to the government takeover of GM, using bailout money and terminating the Pontiac Motor Division, I have opened up my candidates for a new vehicle outside of GM.

From an SUV perspective, I am looking at the Ford Explorer Limited.  With respect to a four door sedan, without Pontiac, the door has been kicked wide open.  Previously, the Pontiac G8 GXP would have been the choice. 

However, it looks like Pontiac G8 lives on in the form of the Chevrolet SS.  The SS debuted in 2014 to much fanfare, filling a need for a four door performance sedan Chevrolet has been missing for decades.  Lets check a review to see how they did:



It is not a Pontiac, but the reviews for the Super Sport Chevrolet cousin to the Pontiac G8 have been outstanding.  Not as flashy as its Pontiac predecessor, the performance and handling, a longtime Pontiac wide track feature, exceed expectations.  In addition, the interior in really impressive.

The SS does seem pricey, but vehicle inflation is in full swing, and when a comparable analysis is performed, it actually is a heck of a vehicle for the price, which is about $45K.

The price includes a gas guzzler tax, implemented by the Obama administration.  Eat my exhaust!

A few reviewers wondered why Chevrolet left the acclaimed Magnetic Ride Control system off the 2014 SS, but indications are it will on the 2015 models.

In keeping in the Pontiac family, it looks like an SS will be in my very near future.

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