No matter how the question was posed, General Motors CEO Rick Wagoner had the same answer: "No comment," on widely-reported talks with DaimlerChrysler AG ostensibly to discuss the possibility of buying the German maker's troubled American arm, the Chrysler Group. Instead, Wagoner said, he would "leave it up to" DC Chairman Dieter Zetsche to comment.
Wagoner did say that the industry's increasingly competitive situation is leading manufacturers to look for alternatives, whether that might mean a merger, an alliance, or some other sort of partnership. "At the highest levels, the stakes in the industry are being raised," said Wagoner. "I expect cooperation in the industry is going to grow over time and the forms it takes will be limited only by our imagination."
The imagination is clearly being stretched as the industry seeks new ways to solve environmental issues, a key topic at this year's Geneva Motor Show. During a GM preview, Wagoner outlined a variety of efforts the U.S.-based maker is taking to develop alternative fuels and powertrains, including ethanol-powered flex-fuel vehicles. Today's global car and truck fleet is 98-percent petroleum-based, he noted, adding that "I think that's going to change a lot."
GM has admittedly lost the lead in green technology, Wagoner acknowledged, and that is a PR problem in its battle with global number-two maker Toyota. With a new generation of so-called two-mode hybrids, flex-fuel vehicles, and other eco-friendly products, the executive said he hoped to improve GM's image while also helping the environment. "We think it's a big imperative," he said.
While Wagoner repeatedly sidestepped questions about Chrysler during a long day at the Geneva Motor Show, the chief executive held back on little else, outlining the GM's search for effective alternatives to the petroleum-powered internal combustion engine, unexpectedly strong February sales, and growing, worldwide demand for automobiles.
Global sales are likely to set their sixth consecutive record, Wagoner told TheCarConnection.com during an interview at the Geneva Motor Show. And while consensus forecasts call for the numbers to reach 69 million, the GM chief believes it could nudge up to the 70 million mark if economic conditions hold.
Wagoner was also upbeat, albeit cautiously, about the U.S. market, predicting a modest turnaround from the year's sluggish start by mid-2007. "I think the U.S. economy is okay," Wagoner said, "but not without its risks." If it holds to last year's three-percent growth rate, that would be "pretty good for auto sales."
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