Re: Ten Reasons Why the Auto Bailout Is a Bad Idea


"F. George McDuffee" <gmcduffee@xxxxxxxxxxxxxxxxxxxxxx> wrote in message
news:vqtqj491f655egjokua97btlu1ggh4nktt@xxxxxxxxxx
On Mon, 8 Dec 2008 10:57:04 -0800, "John R. Carroll"
<jcarroll@ubu,machiningsolution.com> wrote:
<snip>

The only thing clear to me is that neither Cliff or Dennis S. Dickty
understand GM's real problem in so far as profitabily building vehicles
for
the US market is concerned.

JC

--------------
see
http://news.yahoo.com/s/nm/20081208/us_nm/us_gm_ad
GM says it "disappointed" and "betrayed" consumers
Mon Dec 8, 8:40 am ET
DETROIT (Reuters) - General Motors Corp on Monday unveiled an
unusually frank advertisement acknowledging it had "disappointed"
and sometimes even "betrayed" American consumers as it lobbies to
clinch the federal aid it needs to stay afloat into next month.
The print advertisement marked a sharp break from GM's public
stance of just several weeks ago when it sought to justify its
bid for a U.S. government on the grounds that the credit crisis
had undermined its business in ways executives could never have
foreseen.
<snip>
------------------
for the open letter click on
http://www.autonews.com/article/20081208/ANA02/312089881/1018



That's an extremely dissingenuous bit of story telling.
GM has structured itself so that the only way they make money is when they
build large frames.
The exception is their specialty vehicle, Cheverolet's Corvette and a couple
of others that don't amount to a hill of beans combined.
They loose money on every vehicle that is small and or effecient and they
set this in motion by design. There was no accident or circumstance that was
beyond their control.

GM made an bad business decision knowing when they made that decision that
there would eventually be consequences.
They tried to hedge their loss by having GMAC expand it's portfolio.
They have failed.

It's that simple George.

JC


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