by f5fstop » Sat Apr 10, 2010 8:28 am
No one I have talked to at GM has said anything about marketing, what the vehicle will look like or even that it could, in a few years become competition with GM vehicles. I talked with people who had been involved with what it will cost to swap out engines, redesign the layout under the hood for existing components (such as moving the relay panel and battery to allow Raser components to be installed). That is costly.
Also, a swap out of an engine requires crash certification. Which leads to some of the big questions in the deal. Who was to pay for all this redesign and if it was GM, then would it be worth the price to actually make the deal. (Let's say you have three H3s I want to purchase, you set the price, but then I tell you I want thousands of dollars worth of extra accessories added for the same price; and I'm not sure when I will be purchasing the three. I might purchase one today, one in six months, and the last one I'm not sure exactly when. What are you going to tell me? Simple comparison but it is early here in Utah.)
Some of the people I talked to were positive that Raser wanted GM to cover the costs; others (the engineering side), had no idea, they just had to price out the design changes with purchasing and didn't know or probably didn't care who was going to pay. I don't talk to the execs, I talk to the people who actually do the work, and are not likely to blow smoke up someone's rear to give a nice rosy look to the marketing of a vehicle. Some work in legal compliance, some work in electrical engineering, quite a few work in warranty ops and service engineering.
Then there was the question on how many vehicles Raser actually wanted each year. Was there enough to keep a shift dedicated to Hummer alive at the plant. Overall, it was going to end up a pretty pricey vehicle. The costs of the H3 from the plant, then the costs for retrofitting the Raser parts; either at the plant with union wages, or at another facility. Then they had to get the soccer mom/dad crowd back into the dealerships to purchase the end vehicle. The off-road community does not have the numbers to keep the line alive; regardless if Raser takes it over. They, as GM, needed that gravy train from the non-off road community. These were the people who purchased the vast majority of vehicles.
Thank you, USVibrant.