anarchistchiken said:
I should also say that you're speaking like this is in the past. GM is still many years away from any kind of major action. They have plenty of money to throw at whatever problems arrise, and even when they do have to take major actions to reorganize, they're not going to die, nor are any of their subsidieries.
I dont know if you realize this, but Saab and Volvo are some of GM and Ford's only profitable brands. If both companies (ford and GM) ditched their international holdings, they would go belly up very very fast.
What lots of people dont think about is that bad sales numbers are not the only reason the big car companies are hurting. The main thing that's killing their profit is overhead. These companies have been around for about 4 generations now, and four generations of employees means lots of retired workers who are still getting their pension and health benefits. That's one of the main reasons that GM is considering filing for bankruptcy; so that it can drop the millions of dollars in retirement pay it dishes out every year and return itself to profitability.
You are completely right.
Along with a 30 years old manufacturing infrastructure, sales not as good as hoped, great incentives that help cars moving from the lots but cut profitability quite a bit, GM and every other carmaker spend too much of its liquid cash in mantaining the executives, the retirees, health benefits, and dealing with unions.
Unfortunately in a system of this kind the private is left to pay for retirement as well as health costs because there is no a federal system in place.
That is the case because of the way that American society is shaped and it is not good or bad. It is just the way it became.
Having said that, that philosophy will never help big corporation like GM and they can either cut costs, go bankrupt, or drastically move along with the government towards something different.
For too long corporation have though in a short term way, but that cannot be the case anymore.
Everyone has to realize that you cannot just make a car that has no quality and pretend that it will sell, you cannot just not produce new technology because it will not sell right away or it is more convenient to just use what works and be blind about it.
America use to be always ahead and always though forward.
No it seems that most of the tech jobs are being outsorced for cost reasons, that for cutting edge technology they ask services from europe or asia, and I wonder what is left here to do?!?!
But it is not good that a national carmaker cannot sale cars in his own domain. That was the FIAT problem and that is way they are now working on it.
GM can make great products, but they have to focus on the future and make drastic changes to the way they think and operate.
Anyway, sorry for eing out of topic.
I live the current GTO beside no trunk, but the new not so nice.
Crysler product look muche better these days.