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Things to consider REALLY LONG Posted by Caarma [Email]  (#592)  [Profile/Gallery]
(more from Caarma) on Wed, 23 Mar 2005 22:17:25
In Reply to: GM Says It May Kill Off One of Its Brands, dmz789, Wed, 23 Mar 2005 13:28:49 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Remember that historically, GM was formed from various totally separate car companies. That's why each division had their original uniqueness, separate engines, and resulting customer brand loyalty. GM had 50% market share in the 50's with maybe 2 major competitors, no serious import threat. At the time the UAW demanded, (and GM had to give) the great pension and healthcare benefits that are such a financial liability now. Well, times change, and platforms have to be consolidated, badge engineering has to happen sometimes just to keep plants running. If they weren't running, the company would lose even more money. And now there are many more global competitors from Japan, Korea which will take some share no matter what right moves GM would have made.
I'm not saying that this is the best managed company in the world. I would have rolled back the incentives slowly after the post-9/11 0.0% financing. I would have also brought out a hybrid earlier and focused on improving products rather than buying other car companies. But I grow tired of people that really don't know anything about the auto industry chastising GM. The most negative people are probably the ones who know the least, and most likely have not worked in the industry. Car magazines really don't know what they're talking about either, (other than their narrow focus on performance and bias towards imports for certain characteristics). GM still sells the most vehicles in the U.S. Who sells the most mid-sized cars? GM. It just takes more models to do it because of the way customers are say loyal to Buick but wouldn't buy a Pontiac. $1,500 per car for healthcare and pension can go a long way towards making better cars. Guess what? Some of that money comes out of the materials that are used on the interiors. It has to come from somewhere.
And as for leadership, GM has pioneered some great features, technologies that make every car more entertaining, safer and more efficient. GM doesn't seem to get credit for that.
I just find it funny how people could care less about GM until it's declining stock value started to affect the financial markets. It is such a large part of our economy, and perhaps one day a big part of our national security. We should all care, and so should our government.
Buy what you will. Competition strengthens companies. GM will survive, but be fair in how you assess the situation.
Caarma
posted by 69.246.119...
, Thu, 24 Mar 2005 10:13:58
, Fri, 25 Mar 2005 11:34:45, Thu, 24 Mar 2005 10:31:32, Wed, 23 Mar 2005 22:17:25 <-- Viewing This Message
, Wed, 23 Mar 2005 23:54:42, Fri, 25 Mar 2005 18:24:52
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