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Living on scraps Jul 10th 2009 As General Motors emerges from bankruptcy
the worst may be over for carmakers Readers' comments The Economist welcomes your views. Please stay on topic and be respectful of other readers. Thank you for your comment. Hendra S Raharjaputra wrote: July 11, 2009 11:55 New CEO , Fritz Henderson seems optimistic after having some loan from US Government . Should GM be more competitive after finalizing its bankrupt protection , while the competitors, like KIA, Hyundai ( South Korea ) , Toyota, Honda, etc had been leading in front of GM. The Competitors have had parsimonious culture, not jus to cut cost. But let see ! Recommended (1) aazippo1 wrote: July 11, 2009 11:51 Until they are able to "clip the wings" of that bottom feeding, blood sucking Auto Workers Union, they will never get ahead! That union literally sucked the company dry! RT www.anonymize.tk Recommend (1) TS2912 wrote: July 11, 2009 6:03 I think that getting 'horsepower' Lutz (whose main ability seems to be producing retro, high-cubic-volume dinosaurs such as the Camaro) back to GM is the final nail in its coffin Recommended (6) JasonP76 wrote: July 11, 2009 5:14 Wapners: Sorry my friend, but I'm in an optimistic mood, and sometimes all it takes to turn an economy around is a little optimism and rethinking of failed ways. ;) Recommend Wapners PC wrote: July 11, 2009 0:57 JasonP76: Litlle early to be claiming victory don't you think? GM is still negative cash flows in a big way and it will be years before the impact of cars designed and built under new management is felt. If you want to sound off, wait 3 years until you actually have a basis. This is the economist, not Mad Magazine. Get with it. Recommend (1) Wapners PC wrote: July 11, 2009 0:53 One on the great fables of modern times is that GM is now slimmer and has greatly scaled back on employee and retiree benefit costs. Thanks to union ownership of Obama, virtually all pension and benefit costs remain as liabilities to GM. They have been reclassified as preferred stock but the impact is the same. GM had to go through the reputaional damage of bankruptcy and did not even shed it's pension obligations. Lets not forget that government ownership means that GM will not be building cars that people want to buy. They will build cars that the government wants them to sell. GM will be back in bankruptcy within 5 years Recommend (2) silty wrote: July 10, 2009 23:58 Actually, GM has lately been making some cars that have been getting good reviews, with reliability that matches the best of the imports - though quality is hardly uniform across their entire product line. There is plenty of blame to go around for GM's plight, but fundamentally, if a company's cost of production is higher than that of it's competitors, the company is a dead man walking. For decades, the UAW and GM deluded themselves on this, as they frittered away the tremendous lead the American autos co.s enjoyed over the rest of the world at the end of WW II. Well, now the mighty have been humbled, and lessons have been learned, and the cost of labor has been lowered, and resources have been focused on fewer, more viable product lines. And even with all the failures, GM has some tremendous strengths. GM will never again be the collosus it once was, but it still can be a successful company |
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