GM is being bankrupted by two fundamental facts: high labour costs (primarily health care for current employees and retirees) and the to-my-mind far more salient fact that it makes shitty, shitty cars.
The US government, under Pres. Clinton in the 1990s, proposed two things that would have solved both of GM's problems: national health care and subsidies (through the Partnership for a New Generation of Vehicles) to develop more fuel-efficient cars. GM lobbied against health care and never developed the cars the Clinton administration gave them cash for. So even though we need no further evidence of this fact, it's clear that GM's management is totally unable to recognize what's in its own best interests. Now, having brayed "socialism" like every other corporate giant when the government offered them a hand, and having defrauded the public when the PNGV was closed down, I'm supposed to believe that a bailout from at least three separate governments (US, Canada, Ontario) is going to help matters?
What, pray tell, am I missing?
Subscribe to:
Post Comments (Atom)
3 comments:
As someone that has only owned GM cars, I disagree that they make "shitty, shitty" products (explain Hyundai's success then, for a long time Hyundai's cars were worse than GM). To re-work your statement GM is going under from high labour costs and over-capacity. GM has always been producing more cars than it can sell.
They never adjusted to increased competition either. So between that and dropping overall demand, they're screwed.
Toyota, Honda, Nissan etc. are feeling the pain too. Their sales are dropping off big team as well. The lack of unions in their plants might be their saving grace, for now.
Anyway, you are right. A bailout isn't going to stop shit. Either GM, Chrylser, and Ford figure a way out of this mess or they don't. Bailouts will only delay the inevitable.
I don't know about shitty (I currently own a Chrysler...now THAT is shitty), but, shitty by comparison. And no real choice.
I cannot buy a decent, good gas mileage car from the big 3. And the promise of the Volt by 2010 is too late...GM won't exist by then. I mean if Toyota can have a Prius out for 5 fricken years, GM can get the volt out this year.
But then, they were more concerned swith trucks and SUVs...
Mike:
Check this out:
http://docs.google.com/View?docid=df97cf6r_1hmv5d6cj
Its a list I put together based on World Of Wheels car guide, 2008.
Original Post
Post a Comment