Everyone seems to think that the big 3 will get better by getting smaller. I am sure it has happened...but can anyone point out an actual sucess story where a company lopped itself smaller and ended up better long term? I mean all I have seen is as GM offers less models...they sell less cars....

 

It's not successful...

It's called surrendering.

 

GE Jack Welch with its "Fix Sell or close" idea sold off its Air Conditioning to Trane, and cutting cost in its Appliances which up till that point was what people identified GE with. He turned the company around.

 

Apple. Different industry, but same principle.

 

Damn, both of you took the first two responses that popped in my head. Home Depot is another example.

 

Kmart

 

GM had great success when they downsized and elimiated Oldsmobile.......

oh wait...

they lost Corporate volume almost identical to the number of Olds sales, if I remember right....

 

Probably lost all the faithful Oldsmobile guys- Olds had a loyal following and a good reputation- other than when they put chevy engines in the Olds back in the late 70's, and took a beating for that-

The cutting in GE started before Nuetron Bomb Jack (leave the buildings, get rid of the people) I was laid off from GE in '81- and GE had dumped most of their small appliances and electric motor manufacturing by then- the inability of this country to build new power plants hurt GE, who was big in the steam turbine business for power generation. They continued to build gas-fired turbines, and jet engines- even had some defense contracts- but they are way down in manufacturing- They also got into finance, similar to what GM did with GMAC- I have wondered how that has affected both those companies now with the economic condtions-

 

Egghead ---> Newegg

 

I think the point would be to not sell fewer cars, but to sell the same number with fewer nameplates.

 

wouldn't it be intersting if GM actually let each go and let them become their own car company like they were before GM started gobbling everyone up.

 

Now that WOULD be interesting. I'm not saying it's the best solution, but it should be entertaining along the way.

 

Idealy, yes, but I think the Oldsmobile situation proved that is not what happens.

 

Which is why he'd be the perfect car czar.

 

I guess GM and GE are really just money-making corporations, with no real product loyalty- they will manufacture or sell whatever gives them the biggest profit- GM bought Fridgidare years ago- And you can still buy GE lightbulbs- just not made in this country any more- Is that is what's next- GM just becoming an importer of cars selling their 'brand' that is built overseas?