GM in need of a jump-start

As senior citizens flocked to the Minneapolis Auto Show to gawk at the latest and greatest in vehicle technology, General Motors North American Vice President Mark LaNeve was upstairs at the Convention Center making his case to reporters that his company is still viable.

GM, which has borrowed $13 billion from the government and is laying off 3,500 more workers this week, is in the fight of its life as it tries to back away from the brink of bankruptcy.

LaNeve acknowledged that the company was in the unfortunate position of "needing the government's loans" to continue GM's "complete reinvention." But he said the automaker has largely held on to its market share by flooding consumers with rebates and zero-percent financing and by introducing a "stunning" lineup of new vehicles.

"We have introduced an onslaught of new fuel-efficient and crossover cars to the market. We are already the truck leaders and we plan to stay there," LaNeve said as the public jumped in and out of cars, ogled fact sheets and watched company reps point out vehicles' special features.

LaNeve flew in from Michigan to meet with dealers Tuesday night and to attend the auto show Wednesday. Among the highlights he cited were the new Cadillac SRX, the Buick LaCrosse, the reintroduced Camaro, the highly acclaimed Chevy Malibu hybrid, and various hybrid pickup trucks and SUVs.

"Americans are not naturally inclined to buy small cars, but they want good fuel mileage," LaNeve said. "So we have to offer good fuel efficiency everywhere in the lineup."

General Motors is also offering price incentives to get consumers in the mood to shop.

He's got some inertia to overcome. While hundreds of Minnesotans admired the new Fords, Toyotas, Mini Coopers, Hondas and GM cars at the show, many said they came to look, not to buy.

Dick Bergman and Doug Gunderson traveled to the show from Eden Prairie. They coveted a sleek black 2009 Pontiac Solstice GXP Turbo Coupe with a detachable roof. Still, they had no intention of buying.

"It is a great-looking car," Bergman said.

But he added that he likes his 2002 GMC Yukon so much that he plans to keep it for another seven years.

With the economy still in trouble, consumer demand remains weak. GM vehicle sales fell 53 percent last month. Ford, Toyota and Honda have also had a tough year.

General Motors plans to sell or pull the plug on some of its less profitable models, such as Hummer, Saturn and Saab. It also plans to cut back on the number of Pontiac models it offers in the future.

In the end, the Pontiac line will mainly feature sporty cars, said Rubin, who also serves on General Motors' National Dealer Council.

Despite the challenges, LaNeve said, "We have held our retail share over the last year."

Asked when the car industry will begin to turn around, he said, "I think we are there now. ..."I think we will have to crawl our way out of it, but I do believe that [the worst] is in the rear-view mirror."