GM sales down 53 percent: Only bankrupcty left?
One of GM's hybrid trucksLet's face it. GM is in serious trouble. Then again, so is the American economy in general, as well as most of the world's automakers.
Earlier this morning I argued that if GM was building as many hybrid cars today as Toyota, GM's finances would still be in shambles. Even if GM was making as many hybrids as Toyota, and as many small cars as Honda, I'm confident they'd still be bleeding billions per month.
Of course, I'd love it if GM were making as many hybrids as Toyota - I've been begging for it on this blog for several years. Still, neither small cars nor hybrids would have really helped GM's finances in today's environment. They just aren't very profitable, nor very coveted by most Americans, especially when gas is only a couple of bucks per gallon.
Anyway, is bankruptcy the only way to right this wayward ship? Not according to GM. Check it out.
Labels: bailout, GM, Hybrid Vehicles
posted by Dahcredyns at
12:10 PM
4 Comments:
Toyota sales also fell: by 40 percent. And Ford sales fell by 50 percent. It is recession.
That's true.
Still, Toyota and Honda - I haven't seen this months sales yet for Honda - have been down less than the Big 3, and it is arguable that this is because of small cars and hybrids. Of course, it's also because buyers are afraid of buying cars from an automaker close to bankruptcy.
However, unfortunately, today US automakers have a harder time making money off these types of vehicles. They need larger profit margins to cover all their legacy costs, etc. So, even if they were building them the last decade, I don't think things would really be different, that's my larger point.
In a perfect world, I think GM would be better off in bankruptcy. However, I think a well-structured bailout is the lesser of evils.
Of course, if this recession goes on a few years, even a bailout may not save GM, or the rest of the Big 3, from bankruptcy.
I think the Universe is telling us it is time for bankruptcy. Time to call in all the favors, shutter the unprofitable endeavors, fire all of middle management and get down to brass tacks.
Lutz the moron is retiring.
Wagoner the retard must go.
Their entire Board needs fired and then we will see.
GM, Ford and Chrysler are all toast, IMO. Let's clear the slate and try again....
That's pretty harsh.
I can't adamantly argue against what you say, but I don't completely agree with you.
No doubt there is plenty of blame to go around. Still, in many ways Bob Lutz did a lot of good things for GM in terms of overall design and quality, and Rick Wagoner did execute some pretty good union concessions even before the recession.
Like Obama, Wagoner and Lutz inherited a sinking behemoth and they've made lots of gains in the right direction.
Still, sometimes - even when the best of people are involved - change is required, and its hard to argue that's not the case at GM. I'm also intrigued that Lutz's replacement is a powertrain guy - that's at least a good sign.
Nevertheless, I can't lay all blame on GM and the Big 3. Big oil and their cronies in Washington have for decades controlled Washington with the lure of cheap oil. It's been the perfect iron triangle
And while GM has at times been complicit, I still think oil has been the essential grease lubing the system.
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