Is GM going to enter bankruptcy? Should we be concerned if they do? At RTM, we've written quite a lot about the auto-industry's downturn and bailouts, and have shown little compassion for those running a poorly managed industry.
It's not so easy to cast aside the employees of those companies, as well as all those companies that are dependent on a healthy auto-industry, which is an awful lot of people around the world.
So the prediction made by GM auditors that the company may have to file Chapter 11 leaves an odd impression.
One of the chief reasons you hear from GM regarding why they can't be allowed to be go bankrupt and restructure is because they don't believe customers will want to buy cars from a company who filed bankruptcy. This begs the question: What customers do you fear you will lose? If you had customers, you wouldn't be here in the first place.
In a related note. If we as a country get out of this whole and recession regarding the auto industry, and we do not have a commitment to smaller, fuel-efficient, alternative powered vehicles, our leaders are truly morons. Everything is being restructured, we won't have a better chance to abandon unsustainable vehicles which will prop up unsustainable companies.
2 comments:
2 Notes: What is the difference between bankruptcy and what GM has right now?
Second, it is not GM's fault that we don't have fuel efficient cars anymore that it isn't builders' fault that we live in bigger houses. We like having bigger cars, like we like having bigger houses. The fault lies more with our government's inability to account for the true cost of consuming gas and driving heavy cars. To that end I worry that updated CAFE standards won't cut it, because it is a inefficient/sneaky way of Congress to try to get people in fuel efficient cars.
two cents.
Yeah, I don't think it's GM's fault (entirely) that we don't have fuel efficient cars.
I'm just saying that we should come out of this on the other side with a bit more sense. It's a good oppurtunity to do so.
Post a Comment