Quote:
Originally Posted by Dragoneye
How does one oppose the other? The costs of eliminating a brand...or multiple brands as you say would FAR surpass what they're already paying for things. The aftershock...would have killed them. And then that company...the smaller..."leaner" company, still realing from the aftershock, and possible already broke from paying off all those dealers, retirement deals, and restructuring...would have been knocked squarely over the head with this economic meltdown...if they had done as you say above -- they'd be dead right now without question.
I don't think GM needs to have as many brands as they do, either...but I think, more strongly, the last thing they needed to do in these past few years is spend a crapload of money to eliminate a bunch of brands.  |
I don't buy it. Not one bit. They make those cuts over the last 10 years, all the while still building SUVs for Chevy and raking in the cash on those, and today GM is smaller with less overhead, less debt, and not burning through $2.5b a month. The cost of axing the divisions would have been around 10 billion. It takes $999,999,999.00 + $1 to equal a billion. That's what makes their current situation so huge..... the money they burn through in 4 months could have gone to cutting the fat. Thus, stopping the hemorage.
I figure it would take about 10 billion to cover everything if you want to axe 2or 3 divisions. A year ago, they had the cash to do it, and then the hemorage would have eased. Maybe not stop completely, but they would still be ahead of where they are now.