As the US automakers continue to suffer in hard economic times, GM and Chrysler are in the process of finalizing plans for restructuring. The two brands, which are behind some of the great American exotic cars like the Corvette and the Viper, have plans to cut production, eliminate some jobs, and refine brand images.
This extensive restructuring of the auto brands is part of the plan automakers will submit to the Obama administration today. The automakers hope to secure bailout money in order to continue operations.
As part of its restructuring, GM is attempting to sell off two of its brands: Saab and Hummer. Unfortunately, neither brand has seen much interest from buyers.
At one time, owning a Hummer was considered a status symbol, but gas prices and uncertain economic times have had a significant impact on the brand. Now, luxury SUV enthusiasts are more interested in renting a Hummer for the weekend, rather than owning these vehicles.
Exotic car rental has become an increasingly popular option, as skittish consumers shy away from buying assets that depreciate. Instead of hassling with financing an exotic vehicle, trying to find secure, climate-controlled exotic car storage, and shelling out for expensive maintenance costs, many exotic car fans are choosing rental.
For companies like GM and Chrysler, this hesitance to make major purchases translates to a steep drop in automobile sales. And that drop in sales means the carmakers need help from the government.
“We have to ensure that the cars of tomorrow are built here by Americans, for Americans,” White House Press Secretary Robert Gibbs told the Washington Post.
Both GM and Chrysler are offering extensive buyout packages to workers in an attempt to trim employees from their payrolls. GM recently offered a package that included a $25,000 voucher for a new vehicle, as well as $20,000 dollars.
These financial difficulties may mean an end to the production of some of the popular exotic car models. If GM is unable to find a buyer for Hummer, the luxury SUV might cease to exist. The same is true for the Dodge Viper, which is likely to become extinct in 2010.
If your favorite exotic vehicles are no longer in production, exotic car rental is a good way to make your dream of driving a Viper a reality. Just because Hummers are no longer rolling off the assembly line doesn’t mean you can’t drive these iconic vehicles.
GM and Chrysler are hoping to restructure their business operations, qualify for additional help from the government, and come back stronger than ever.
Kate Miller-Wilson is a professional freelance writer living in the Twin Cities. Visit her website or email her for information about her freelance writing services.