22 November 2005
The mark of excrement
I've been a Honda guy ever since I grew up. Reliability is what matters. And so I don't expect that GM's big job cuts, announced today, will make a whit of difference. They'll still be out there peddling third-rate product to the public, with the sycophantic hacks of the American auto press still pimping for them, just like always. The main concern at GM will remain the care and feeding of the union and union pensioners, and moving enough product to get some numbers that investors and analysts like. But not making good motor vehicles.
General Motors, if you look at the balance sheet, isn't a car company: it's a finance company (GMAC) that vends motor vehicles on the side. Which is why talk earlier this year that GM might actually spin off GMAC, one of its few divisions that ever turns a profit, was viewed as suicidal; they did eventually sell off three-fifths of their commercial-mortgage operation, then unloaded $55 billion worth of car loans onto Bank of America, perhaps to raise cash during these troubled times.
My own prescription, and if anyone actually follows it, I will be surprised:
Then again, there's always Chapter 11.Posted at 7:24 PM to Driver's Seat
TrackBack: 10:24 PM, 22 November 2005
» GM Job Cuts Won't Improve Poor Quality from rosenblog.com
I'm proud to be American. I'm pro-business, although opposed to federal tax code giveaways to big corporations and whole industries. I'm Republican, but not very keen on all the state tax breaks allowed by Rs and Ds for business in......[read more]
TrackBack: 5:22 AM, 23 November 2005
» Cuts won't solve GM's fundamental problems from The Subjective Scribe
GM's problems are self-made. Some put the blame squarely on the unions and their demands in past years. Although in the distant past, unions might have overdemanded at times, in recent years the unions have been doing a lot of conceding to help keep ......[read more]