Quote:
Originally Posted by oddjob
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.
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Having Chrysler and GM go bankrupt 6 months ago would have been disastrous, recall for a moment all the panic and uncertainty last fall, banks were failing, Bernie Madoff had just been arrested for the largest Ponzi scheme in the world. Imagine if on top of all the chaos two of the largest companies in the country announced that they were going into Chapter 11. Now we are not much better off but people perceive we are slightly more stable, Obama has a plan (like it or not) Part of leading is limiting panic, if in the course of 3 months it is announced that not only are major banks failing, fraud on a global scale, AND 2 massive employers are going bankrupt people will panic. IF GM has to die I would much rather it die a controlled death than a massive, painful one.
Your other points only make me think [citation needed] What concessions? Who said anyone currently in the government will run the companies? Not saying you are wrong but I would like some more facts because you make some very interesting points.