http://news.bbc.co.uk/2/hi/business/4370618.stm

 

GM what the hell are you doing... downsizing, spinning off, closing shop is not the way to make more profit... its a quick fix... and if GM is ever going to make a profit the more places they can make that proffit is going to be better for them...

 

I don't understand economics well enough in regard to car production but I do know I constantly hear that GM is currently setup to be profitable at something like 35% marketshare... under that it's not possible for them to be, period. They also think that they're in day and age where 35% international market share is an impossible goal for one company. So maybe they're trying to restructure to where the can make profit at 25-30% or whatnot?

 

Well, GM has interests in Isuzu (and is a part-owner) anyway, so this would still keep those (minor, overseas-only) divisions close at hand.

 

Yeah that's what I thought. Just seems to be shifting things around more then anything. Putting the overhead on Isuzu's shoulders.

 

Kinda like selling a Daewoo plant to Holden. It would be in the same family.

 

Interesting. I think they might have an interested Saab buyer as well. I don't remember the company, but they've offered to buy Volvo from Ford recently, and Ford turned it down. Article mentioned how Saab may be next on that companies interest list.

For Ford, Volvo is actually turning a profit (only PAG division to do so), but for GM, this may be a good chance to get rid of the troubled Saab brand. If they were approached, i think they should jump on the sale. I see little hope for Saab and GM has enough trouble of their own.

 

Not quite. Whereas GM used to own close to 50% of Isuzu (which they had previously written off), they now own about 8%. Most of that happened in a deal that gave GM majority ownership of their joint Diesel engine operations. So selling off parts of the Australian and South African operations to Isuzu isn't exactly keeping the money in the GM family