Quote:
Originally Posted by Design1stCode2nd
Katrina should have been a wakeup call that hey, we are vulnerable, we need to improve the entire portfolio and even if we don’t make much on small cars we should still strive to make the best small car. But they didn’t and now they are where they are. The problem with GM is it’s a big ass ship and its slow to react. Combined with entrenched bureaucracy that has rusted the tiller so it fights you whenever you want to make a turn. In the end what would be best for GM is to file Chap. 11, shed the needless brands, shed the bloated dealer network, downsize and become focused, firing most of upper white collar workforce. It would be a renaissance of the US auto industry.
|
The wakeup call came in the late 70s...long before Katrina. So I agree with you there. This situation should have been prepared for, imo. But what's tricky is that the "when" was unforeseeable.
However, I disagree that chapter 11 would benifit GM at all. First of all, they aren't out of money, yet. They're losing money, yes....but according to Wagoner, the worst in terms of job cuts and program reshuffling is over. So they aren't yet in an ideal bankruptcy position (if there is an 'ideal' position to go bankrupt...).
If they can make it to 2010 (which the federal loans will all but guarantee) they may actually begin to
turn a profit.
Anyways, you cited the 'positive' results of starting over through Capt. 11...but what you left out is what could make the biggest impact...and it's a negative one.
Would you buy a car...a 5+ year 'investment', from a bankrupt company? I doubt many would; and this, imo, is the single most deadly facet to GM filing for Chap. 11. They would lose nearly every last customer they have right now. There's no coming back from that -- so they'd be restarting for nothing.