In the news: General Motors Corp. Vice president Chairman Bob Lutz has said Tuesday at Geneva that intense competition and the growing overcapacity could threaten the existence of one of Detroit's Big Three automakers. He also added that the current market conditions are conspiring to eliminate one of Detroit's automaker, "if you project out present trends, you can only come to the conclusion that it's going to be an extremely difficult environment".

Lutz has also made it clear that in his opinion, General Motors is more likely to survive compared to other automakers like Chrysler and even Ford Motor Co. He said, "right now, we're in the best position since we're approaching the end of the beginning of the transformation of GM."

Analyst Bradley Rubin of BMP Paribas in New York also agreed that there is the possibility of a shakeout. He said, "It's true. It is confusing. There are a lot of products out there."

General Motors-world's largest automaker and manufacturer of the popular range of GM mirrors -- after losing $10.6 billion in 2005 has embarked on a massive turnaround plan that included the shedding of 30,000 jobs, launching numerous new products and selling off assets to raise funds. On the other hand, both Ford and Chrysler are undergoing major restructuring as well. Unfortunately, for the three automakers they have consistently failed to increase their profit and sales in their home market.

According to Lutz, "We cannot, as an American auto industry, survive long-term with the legacy cost burden that we've gotten." Plus the rising cost of pensions and health care for retirees and employees has become a burden that could very well sink one of the traditional Big Three. Lutz also added, "In today's fiercely competitive environment, where every bit of value in the car counts, you cannot prevail in this business if you have a $2,000 cost disadvantage versus your closest competitors."

Lutz however decline to answer question relating to the topic GM purchasing Chrysler. News has it that senior executives at GM and DaimlerChrysler have held talks since December about GM's interest in purchasing Chrysler.

Although, Lutz has refrained from discussing the possibility of a GM-Chrysler deal, he contrasted the benefits of a domestic auto merger citing why GM has rejected last year the possible alliance with foreign rivals Nissan Motor Co. and Renault SA. Lutz explained, "Generically, synergies are easier to get in the same geography than across geographies. That was the problem with the Renault-Nissan. What sane auto company would sign up for that?"

And just like Lutz, GM Chairman Rick Wagoner have decline from commenting on the issue on Chrysler. He told reporters at the Geneva show, "There's nothing we want to say about that." He also stressed that GM would never enter into a deal just to stay as the number one global automaker ahead of Japan's Toyota Motor Corp. "That wouldn't be the motivation for any alliance. But we like to win and we'll keep fighting for it."