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GM needs to make cars that people want to buy
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Posted by J [Email] (more from J) on Mon, 17 Nov 2008 07:44:38 Share Post by Email
In Reply to: How to Save GM, OKSaabs, Wed, 12 Nov 2008 05:10:13
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For the longest time, GM has produced the worst cars on the road.
For the longest time, GM's bean counters have had veto power over
engineers and designers.
For the longest time, GM concentrated on making money off of SUVs and
trucks. Cars were after-thoughts. GM could only move cars with huge
incentives.

GM, Ford and Chrysler have been allowed to get inefficient through
protectionism. For the longest time, protectionist policies have
allowed US automakers to get fat and lazy off of huge profits from
sale of trucks and SUVs.

And now, the entire US auto industry is in danger of dying just like
the US steel industry.

Protectionism costs US consumers and allows US industries to remain
inefficient, fat, dumb and happy until SHTF. Now S has hit the fan,
and the entire industry is teetering.

The best thing that can happen to GM now is for it to declare bankruptcy
and _then_ receive some loan guarantees from the government. Bankruptcy
will allow GM to restructure and renegotiate contracts with UAW.
When GM gets back on its feet, the trade barriers have to be removed
so that GM is forced to compete on equal footing.

GM is mismanaged and for the most part makes cars that nobody wants to
buy. Solution is to get new management and to make cars that people
actually want to buy.

Cheers,

jae

posted by 216.60.127...


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