For the umpteenth time, GM can’t seem to unload a devision it wants to get rid of, for whatever lame reason.
Let’s look at history: They made such bad deals with unions such that GM has to tag on $4000 to every car they make in order to pay benefits to people that don’t produce for them anymore. They killed off the oldest car manufacturer in the United States. After the government took over, they killed off Saturn and Pontiac, and tried to sell Saab, Opel and Hummer. All failed. This company is riddled with poor performers and with Obama running it, it’s gone down even faster.
Judging by the fact that the Chinese government wouldn’t ok the sale, I have to wonder why? I imagine that Obama’s snubbing them time after time might have something to do with it. Politics factors in here as the Chinese government runs business there.
May be this is a blessing in disguise. Where are the machers out there that can secure financing and buy the marque and keep it here? Harley Davidson employees bought their company back. It’s a shame about Pontiac and Olds. Both great marques that were killed off for no good reason. I couldn’t care less about Saab, Opel or Saturn as I don’t care for the marques, but it is a shame in the sense that malfeasance led to the loss of jobs in these companies.
Bottom line is that as bad as GM management was, it’s worse now that it is run by Obama and his minions. Don’t believe me, look at Ford.
The incomparable John Batchelor asserts that GM should make their cars in China. I have been saying this for awhile. They should file chapter 11 and relocate their manufacturing to China. The unions have outlived their usefulness and have been the downfall of the car companies. Honestly, the only reason they are getting such treatment is that the democrats owe the unions for getting Ostalin elected. At this point I don’t know if they can file chapter 11, but they must do something quickly, and groveling to us, while keeping the status quo insofar as how they do business is a bad bet for us. As they say is is throwing good money after bad. If they don’t get it right, then creative destruction is in order. It is good when unprofitable ventures fail because behind them is another that will be profitable to take its place. I liken it to having a garden where we keep the rotting but still living plants because we do not want to see them die. Meanwhile the same fertile real estate could be used to grow a plant that is healthy and productive. The goal of capitalism isn’t consumerism, but productivity and value. GM, Ford and Chrysler off very little of both.
The incomparable John Batchelor asserts that GM should make their cars in China. I have been saying this for awhile. They should file chapter 11 and relocate their manufacturing to China. The unions have outlived their usefulness and have been the downfall of the car companies. Honestly, the only reason they are getting such treatment is that the democrats owe the unions for getting Ostalin elected. At this point I don’t know if they can file chapter 11, but they must do something quickly, and groveling to us, while keeping the status quo insofar as how they do business is a bad bet for us. As they say is is throwing good money after bad. If they don’t get it right, then creative destruction is in order. It is good when unprofitable ventures fail because behind them is another that will be profitable to take its place. I liken it to having a garden where we keep the rotting but still living plants because we do not want to see them die. Meanwhile the same fertile real estate could be used to grow a plant that is healthy and productive. The goal of capitalism isn’t consumerism, but productivity and value. GM, Ford and Chrysler off very little of both.
For the umpteenth time, GM can’t seem to unload a devision it wants to get rid of, for whatever lame reason.
