How come none of the execs in their testimony touched on..
#17
Sure, Ric could have rattled off all the quality improvements and how GM vehicles stack up against the competition, but that would be utter garbage and stupidity on his part to do something like that. The issue isn't how much quality these cars have. It's the fact that these US companies have been anywhere from managed via nieve ideas to simple grossly mismanagement. Most all resources were piled into the simple and high profit large truck market while littled of nothing was placed into cars. That left them all venerable to changes in fuel prices and sudden economic problems. GM put itself in a position where it sold off it's in-house financial arm for money to tie them over till whatever they expected to kick in finally kicked in. And it never did.
And you wonder why congress is skeptical?
And you wonder why congress is skeptical?
Secondly, it is easy for everyone to be an armchair QB in all this...and not put yourself in a business owners shoes. If you are GM 10 years ago, would you invest in making great SUV's that make up to $10K in profit a vehicle, or in making small cars that you cannot sell profitably. If GM missed the SUV boom, and the profits it made with it...that would have been a disservice to shareholders. That being said, even today, GM HAS a world class car lineup. They may not have a feel good car like the Prius (though the Volt kinda fits here), but in general all of their cars are competitive and compelling, if a buyer is really going to consider an American brand.
The fact everyone overlooks, is that GM has successfuly turned around it product lineup, and IS one of the most efficiant car makers in the business. I really don't know what else GM can just chop off or sell to make itself more profitable or better run. The real problem is, the automarket has dropped from almost 18 million units, to maybe 13 million units. 5 million cars is a TON of volume to just disappear out of nowhere. Sure other import automakers are weathering it...but what you are seeing is their cost advantage covering the difference between loss and profitability. GM does not have that wiggle room untill the labor contract they negotiated comes into effect in in 2010. When they say they need a loan as a bridge this is what I think they are referring to. Also, GM's situation has crippled GMAC's ability to get money to loan. What bank wants to loan money to give a company (GMAC) to finance vehicles made by a possibly bankrupt company (GM)? So..even if you want a GM car..now getting a loan is harder. Plus all this negative press just scares away customers anyway. If you listened to our own lawmakers, GM basically makes unefficant peices of crap. What is that gonna do to motivate people to buy American?
Again..If your gonna make the argument that GM does not deserve a $10 million loan because of mismanagment...then you really need to look at the mismanagement in the banking industry that just received $700 million in loans with pretty much no strings attached but CEO compensation.
Last edited by formula79; 11-23-2008 at 10:53 PM.
#18
Furthermore, I've never seen an inkling out of GM that they are willing to fix that problem -- to actually get their new model introduction timelines in line with the number of models they have. This problem goes back 20 years, and they if anything have just added more models, and let the other half of their fleet lot-rot at any given moment.
Anyway, I can understand why many consumers aren't going the GM dealer to fish the kernel of corn out of the pile of poo. It's not entirely irrational bias.
Again..If your gonna make the argument that GM does not deserve a $10 million loan because of mismanagment...then you really need to look at the mismanagement in the banking industry that just received $700 million in loans with pretty much no strings attached but CEO compensation.
Unfortuantely for a lot of people, it seems the current DC plan might be to let GM go bust, and then save Ford.
#19
*All* their cars are competitive? Aveo is competitive? LaCrosse is competitive? Really? Because I see a few good cars surrounded by dozens of mediocre and obsolete products.
Furthermore, I've never seen an inkling out of GM that they are willing to fix that problem -- to actually get their new model introduction timelines in line with the number of models they have. This problem goes back 20 years, and they if anything have just added more models, and let the other half of their fleet lot-rot at any given moment.
Furthermore, I've never seen an inkling out of GM that they are willing to fix that problem -- to actually get their new model introduction timelines in line with the number of models they have. This problem goes back 20 years, and they if anything have just added more models, and let the other half of their fleet lot-rot at any given moment.
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