General Motors and the Citigroup Bailout
Reader Comments
Taylor's wrong about Saturn
It was easily the greatest of GM's recent achievements. How many other American cars in the past few decades have developed a cult following?
Unfortunately, though, GM has spent the two decades plus trying to kill the brand by driving out everything that made it unique. Only made in Spring Hill? We'll make it everywhere! Dent-resistant panels? Gone! Unique design? We'll just repackage other GM models under the Saturn name! Brilliant!
Let. Them. Die. They deserve it.
Too many jobs in Big Banks -- time to downsize
The popping of the housing bubble, after over construction of houses (by about 2 million), has meant a loss of jobs for some 500-600 000 workers (legal), and perhaps twice that among illegals (many going home).
The FINANCE bubble built on top of this also means too many bankers, and too many banks.
We need to help the solvent banks, and quickly let the insolvent banks die. There should probably be some 500 000 fewer bankers before the finance crisis is over.
The Big Banks, like Citi, which were too foolishly risk-seeking to avoid the high-risk derivatives, already have most of the toxic assets. They already are insolvent. There's no need for a new holding area, just let the bankrupt banks go into Chapter 7 (not 11, they're insolvent), and dispose of their assets at 20% of book value or so -- and let the solvent banks take over the good business.
GM
Spin off the profitable foreign part to shareholders. Then let the USA operation die a slow death.
GM
Reduce dealerships and brands by 60-80%, focus on mass production, not special niches.
GM's production will be down 25-35% next year at best. Until the government adapts a program of rewards and penalties to encourage the public to buy "green" cars, let the marketplace dictate the products to be built. Buils what can be sold, not what can be built. Business 101. GM probably needs only 6-10 assembly plants, running close to three shifts per day. Building state of the art plants is another high priority.
Top management needs to go as well as the Board. All non-essential expense needs to be eliminated. The Chevrolet Corp. of the future, if there is a future, for this entity, will not resemble the old GM in any measureable way. I haven't seen anyone who has the slightest idea of what to do or how to do it.
L Lang
St Louis, MO
GM
Reduce dealerships and brands by 60-80%, focus on mass production, not special niches.
GM's production will be down 25-35% next year at best. Until the government adapts a program of rewards and penalties to encourage the public to buy "green" cars, let the marketplace dictate the products to be built. Buils what can be sold, not what can be built. Business 101. GM probably needs only 6-10 assembly plants, running close to three shifts per day. Building state of the art plants is another high priority.
Top management needs to go as well as the Board. All non-essential expense needs to be eliminated. The Chevrolet Corp. of the future, if there is a future, for this entity, will not resemble the old GM in any measureable way. I haven't seen anyone who has the slightest idea of what to do or how to do it.
L Lang
St Louis, MO
GM Bankruptcy
I just heard that GM is planning on filing for Bankruptcy on Friday. Is there any truth to this?
