IMO, the government shouldn't be doling out subsidies for electric cars
or punishing those who drive gas or diesels in the first place. If I make the decision to drive a car that gets relatively low fuel mileage and requires premium fuel, I pay the penalty through higher fuel costs. The government has no business trying to be my nanny by further discouraging me with a gas guzzler tax. But by the same token, I'm also against politicians (of any stripe) telling private or public companies how to run their businesses. If people don't like GM's decision, then don't buy their products. Vote with your wallets. I won't buy GM's products to this day because I had to deal with their engineers and managers years ago and not a bigger bunch of arrogant assholes has ever walked this Earth (IMO). Maybe it's petty of me to still feel that way, but, oh well. :dunno:
This is a good move on GM's part. It simply had to be done.
I understand that you're being sarcastic, but you are correct. I'm not a fan of Mary Barra, but I have to admit that she's done a MUCH better job than many/most expected. Painful as it is for those losing their jobs, but yes, in light of changing consumer demand, axing car plants and reducing excess capacity has to be done. And what better time for this to happen? Seriously! Would you rather get laid off when unemployment is virtually nonexistent (for those with even light skills)... or when you can't buy a job? She made mention of that too. And I agree with her. Yes, losing a job sucks. But with the severance, job training and so many openings for the foreseeable future, I hope that these folks land well on their feet and most find this to be a path to an even better life. Getting far, far away from automotive was certainly the best thing that happened in my professional life.
The GM bailout that caused GM to tread water for 8 years was implemented by the Bush administration.
He should have let them fail back then and someone would have bought them out.
Ford Motor Company took no federal money and are thriving.
It’s GM’s business model that’s the problem,not Trumponomics.
The problem with letting GM fail back then was that it would have affected the massive, intertwined supply chains that fed most every other domestic (and global) manufacturer. Many Tier 1 and most Tier 2 and Tier 3 suppliers survive based on accounts receivable financing. Banks were already jittery. A GM Chapter 7 would have shut off the faucet and no one would have been building cars for an extended period of time. Then dominos would have toppled. And no one could have bought GM at the time because it was too big (and sprawling) and besides, the global credit markets had frozen up by then. A Chapter 7 at GM would have done more (long lasting) harm than good. Yep, Ford, under the magnificent leadership of Alan Mulally, did weather the storm. Ford sold assets (almost all of the racing businesses, as well as Jaguar, Land Rover, Volvo, etc.) and mortgaged everything that could be mortgaged. There's a an excellent book about him and his achievements at Ford. I suggest it for anyone and everyone who is a fan of cars, car culture and/or the automotive business. It's called
American Icon: Alan Mulally and the Fight to Save Ford Motor Company. But even Mulally admits that while he will take credit for whatever people want to give him credit for, he's said that his timing in dumping assets and borrowing money
just before the vault closed was also partially luck. Hey, the dude is lucky
and good. Nothing wrong with that. :yesyes:
Although Ford is having its own capacity and product mix issues now (they're doing their own capacity adjustments, but on a smaller scale than GM, and they're looking at platform sharing with VW to save money), most all of these issues and decisions are related to
consumer demand. I understand that people either want to beat Trump's ass or cheer for him on this board. But to your point, BC, if the economy was in bad shape, there would be a demand for cheap grocery-getters that run to 40 mpg... not these $60K soccer-mommy mobiles that I
SO hate with a passion when they park near me or hog the left lane while they drone on at 68 mph in a 70. So the economy is pretty darn good right now. I didn't vote for him (or Hillary), but I do agree with many of the things that he's done on the economic front. The tariff/trade beef with China contributed to rising costs at GM, Ford and every other manufacturer that utilizes steel and certain other materials - and that's not helping domestic manufacturers. I know why he's doing it, but he is playing with fire there. Hopefully the Red Chicoms will blink first... and soon.