I read this this morning through the Green Hybrid website. And as Delta Flyer so eloquently stated "It's no longer hybrid forums saying GM has issues". America & GM: Can this marriage be saved? Are Americans finally be coming out and speaking up? times are a'changin...
I love how the article is titled. Makes you think GM is on its last legs. GM sold 4.6 million vehicles in the US last year, far more than Ford, far more than Toyota. In 1999 the automotive and business 'experts' were deciding which year Ford would transplant GM as the worlds largest automaker. The headlines and certainly 2 hybrids commentary would make it seem as though GM hardly sold any vehicle in AMerica. GM and Ford will be back and then we will get to see how the transplants react to layoffs etc. Toyota today is very similar to Japan inc of the late 1980's and we all know what happened there. A growth strategy works great while you ae growing but the second the growth plateus or there is negative growth the whole paradigm shifts, just ask GM. Remember in the late 70's the federal government was exploring way to break up the juggernaut that was GM.
My vote is no it can't be saved. It is a very uphill battle for GM with the battle of perception being very skewed to other manufacturers. As long as it has taken GM to get moving, I think other manufacturers are setting on the laurels and are trying to get as much of the market that GM is losing as possible. I guess, in summary, it is too little too late. By the way, how much money did GM lose last year when it was selling those 4.6 million vehicle? Oh yea 8.6 billion (yes, I know that plant closings impacted that number). How much did Toyota make even though it sold less cars in 2005? Around $4 billion. Which company would you predict is doing better, the one who post a $8 billion loss and sold the most cars, or the company that made $4 billion?
It probably can't, you're right. The union, like a mindless parasite, won't let go and would rather kill GM and itself rather than give in to any concessions. <sigh>
Almost everyone knows that the only reason to change is to avoid or relieve pain. For example, the only reason I pick my shoes off the floor to avoid being scolded by my wife. In business, companies do whatever they have to in order to avoid pain of any form. So if pain leads to change and consumer opinion leads to pain, change is in the air. Many people have said that American car manufacturers must change to survive. But why should they? People still buy their cars in droves and that lessens the pain. Even paying the benefits of the employees is easier when the cars are selling. So if the American population is moving away from the American cars, there will be pain. Serious pain. This will lead to change. And change is what's needed to keep the companies alive. That's intentionally cyclic logic. But my point is this: it should not surprise anyone because it's the natural pattern of business and the only way to force a change.
I was reading the GM spokesman reply and he almost had it right. "We earned our way to this position to a certain degree." um... duh. How about GM did everthing possible to get into this position. Then he said "GM will have to make cars with more compelling designs..." like "Hummer H3". Is he kidding? All this talk about quality, efficiency, evironment.... oops, an H3 went by, never mind all that I gotta go buy one.
I don't remember, but I'll take your word for it. But that was then; nowadays the feds are formulating their answer to GM's request for BK, methinks. Be glad GM sold 4.x, and did not sale 5 million vehicles. That would have been another $billion lost.
See that is where you are wrong. They have huge legacy costs which have less impact the more vehicles you sell. At just under 5 million vehicles soldin 2005 GM would have been profitable. the number moves depending on what the mix is, obviously it takes the sale of less silverado to 'crack the nut' so to speak than it does malibus.
It is interesting to note that if Toyota was saddled with GM's legacy costs, Toyota would have lost money last year.
