Quote:
Originally Posted by Jon236
The difference between speculation and investment in the stock market is that you invest for the long term. That is what GM has done with FRC. FIRST provides the feedstock for GM's next generation of engineers.
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GM will need far fewer engineers now. They have profitable trucks and other large vehicles that Obama is going to obsolete with higher mpg requirements. The Malibu will survive, everything smaller is not competitive, except maybe for rebadged imports such as the Aveo. I predict GM will become a rebadging company for far east manufacturers, if they survive beyond 8 years to a new administration - assuming Obama is reelected, and poor value for $50B of taxpayer money IMO. They could have gone bankrupt 6 months ago and saved us $50B.
Chrysler will become Fiat-Lite. Fiat just came in dead last out of 28 manufacturers in a survey of new car quality in the UK. Their mediocre cars will not sell in the US, so expect more government handouts there too. Study the 1960's and later history of Austin/Morris to see what the future holds for GM and Chrysler. Poor management, costs too high, epic fail. I had relatives that worked at Austin (later British Leyland etc.) in Longbridge UK. It was a huge site. Went there a couple of weeks ago and it's a big patch of dirt now. The so called UAW "concessions" are not serious, and who in government is qualified to run a car company? I have a really bad feeling about all of this and hope I'm dead wrong. I currently own a Cadillac and two Chryslers and it looks like they will be my last.
Sad to say but any FIRST teams that are dependent on GM money, need to find a plan B. Possibly nobody yet knows if they will be able to fund FIRST but there is a very clear risk they will not.