Comments on: Will the new GM escape the curse of the old? http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/ Commentary on the economy, the markets, and business Sat, 05 Dec 2009 05:18:44 +0000 http://wordpress.com/ hourly 1 By: paulievavoom http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14305 paulievavoom Sat, 11 Jul 2009 23:42:04 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14305 Why are we so worried about the long term fate of GM? I think we should be pleased by the fact that GM is an employment stream in a dried up dessert economy. As CNBC's Jim Cramer says of GM, "It's just a jobs and welfare program that makes cars and won't ruin the profitability of the industry anymore with cheap financing because it wants to "regain" share from Toyota or Ford or anyone else." Why are we so worried about the long term fate of GM? I think we should be pleased by the fact that GM is an employment stream in a dried up dessert economy.

As CNBC's Jim Cramer says of GM, "It's just a jobs and welfare program that makes cars and won't ruin the profitability of the industry anymore with cheap financing because it wants to "regain" share from Toyota or Ford or anyone else."

]]> By: links for 2009-07-11 « Polar Blog – Mobile Obsessed http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14299 links for 2009-07-11 « Polar Blog – Mobile Obsessed Sat, 11 Jul 2009 17:00:54 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14299 [...] Test [...] [...] Test [...]

]]> By: bryanfromhouston http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14297 bryanfromhouston Sat, 11 Jul 2009 14:54:43 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14297 GM will continue to produce cars. They will be marginally successful relative to their past efforts and ultimately, they will be profitable, but much, much smaller. The reality is that it is impossible to grow an industry that has so much overcapacity. The problem is relatively simple. Businesses grow where there is customer demand for a product. Without demand, the need for supply is not necessary. The world today needs to figure out, and quickly, where will the demand come from? GM will continue to produce cars. They will be marginally successful relative to their past efforts and ultimately, they will be profitable, but much, much smaller.

The reality is that it is impossible to grow an industry that has so much overcapacity. The problem is relatively simple. Businesses grow where there is customer demand for a product. Without demand, the need for supply is not necessary.

The world today needs to figure out, and quickly, where will the demand come from?

]]> By: curmudgeon57 http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14295 curmudgeon57 Sat, 11 Jul 2009 14:30:04 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14295 First, Justin, I hope you're right. But I've seen enough major management mistakes come out of GM to doubt your opinion: paying Fiat $2 billion to go away; selling more cars than ever in 2006 yet losing $10 billion; Hummer; talking to Chrysler about a merger; Delphi. I could go on. I've worked in Detroit in the past (*not* in the auto industry), and the biggest obstacle that I see is cultural. Probably because they were the stewards of the largest and most successful industrial endeavor in our history, there is an overwhelming if unspoken belief in the Detroit area that they know best how to run things. I admire Ford for taking a step away from that culture in hiring Alan Mulally (although I fault Bill Ford for many other things). But if the seminal events of GM and Chrysler (and at least several major parts suppliers) going into Chapter 11 can accelerate a significant change in this culture, they may have a chance. First, Justin, I hope you're right. But I've seen enough major management mistakes come out of GM to doubt your opinion: paying Fiat $2 billion to go away; selling more cars than ever in 2006 yet losing $10 billion; Hummer; talking to Chrysler about a merger; Delphi. I could go on.

I've worked in Detroit in the past (*not* in the auto industry), and the biggest obstacle that I see is cultural. Probably because they were the stewards of the largest and most successful industrial endeavor in our history, there is an overwhelming if unspoken belief in the Detroit area that they know best how to run things. I admire Ford for taking a step away from that culture in hiring Alan Mulally (although I fault Bill Ford for many other things). But if the seminal events of GM and Chrysler (and at least several major parts suppliers) going into Chapter 11 can accelerate a significant change in this culture, they may have a chance.

]]> By: qqi239 http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14294 qqi239 Sat, 11 Jul 2009 14:19:57 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14294 Negative factors: 1. Union work rules are not going anywhere. 2. CAFE standards are going to be only worse, since new GM would be forced to produce more crappy small cars they have no in-house skills to produce. Positive factors: 1. UAW may start looking after the long term interests of their members instead of towing Mike Moore's line making everybody equally poor and environazis' on shutting down all US manufacturing altogether. Negative factors:

1. Union work rules are not going anywhere.
2. CAFE standards are going to be only worse, since new GM would be forced to produce more crappy small cars they have no in-house skills to produce.

Positive factors:

1. UAW may start looking after the long term interests of their members instead of towing Mike Moore's line making everybody equally poor and environazis' on shutting down all US manufacturing altogether.

]]> By: tanboontee http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14291 tanboontee Sat, 11 Jul 2009 03:48:48 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14291 Only just a month, GM is out of bankruptcy. What an incredible smart move! The new image comes with a price – at least 20,000 employees retrenched, a thousand agencies closed. Want to have a second chance? Go ahead, with the government’s backing, there can always be a third chance. With so many greedy people looking for instant cash and status, how could the new GM escape the old curse? (btt1943) Only just a month, GM is out of bankruptcy. What an incredible smart move!

The new image comes with a price – at least 20,000 employees retrenched, a thousand agencies closed.

Want to have a second chance? Go ahead, with the government's backing, there can always be a third chance.

With so many greedy people looking for instant cash and status, how could the new GM escape the old curse?
(btt1943)

]]> By: moby33 http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14290 moby33 Sat, 11 Jul 2009 02:04:32 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14290 Anybody that says they won't buy GM cars due to poor MPG or quality issues is ignorant and living in the 80's/90's. I'm sick of hearing this 'argument' from people that are obviously extremely out-to-lunch on what the company (and all domestic car manufacturers for that matter) have been building for the last decade. Furthermore, they prove their ignorance on the current pipeline of vehicles that are set to hit our streets in the next 1-5 years. Check the facts on how many vehicles GM has in its lineup that gets over 30mpg AND look at a current JP Powers reliability report (or read any number of extremely positive reviews in MotorTrend or Automobile Mag) and then tell me domestic car makers are not competitive! Why people continue to live in the past and use the dated/ignorant battle cry of 'American Cars are Junk' is beyond me. Wake up and join us in the year 2009! Anybody that says they won't buy GM cars due to poor MPG or quality issues is ignorant and living in the 80's/90's. I'm sick of hearing this 'argument' from people that are obviously extremely out-to-lunch on what the company (and all domestic car manufacturers for that matter) have been building for the last decade. Furthermore, they prove their ignorance on the current pipeline of vehicles that are set to hit our streets in the next 1-5 years. Check the facts on how many vehicles GM has in its lineup that gets over 30mpg AND look at a current JP Powers reliability report (or read any number of extremely positive reviews in MotorTrend or Automobile Mag) and then tell me domestic car makers are not competitive! Why people continue to live in the past and use the dated/ignorant battle cry of 'American Cars are Junk' is beyond me. Wake up and join us in the year 2009!

]]> By: kija1 http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14283 kija1 Fri, 10 Jul 2009 22:50:47 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14283 I do not buy GM, but this is not due to some misguided sense of government waste (bailout), rather it is coz GM make really crap cars. If GM made a car that got 40 mpg, and did not have to undergo the costly repairs that their cars need, I will bet you anything that they would have to top selling car in the world. In essence, to say that there are legions of Americans who will not buy GM because of the bailout is an argument void of any logic. I do not buy GM, but this is not due to some misguided sense of government waste (bailout), rather it is coz GM make really crap cars. If GM made a car that got 40 mpg, and did not have to undergo the costly repairs that their cars need, I will bet you anything that they would have to top selling car in the world.
In essence, to say that there are legions of Americans who will not buy GM because of the bailout is an argument void of any logic.

]]> By: tramposo24 http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14276 tramposo24 Fri, 10 Jul 2009 17:15:13 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14276 And frankly (I hope GM is listening), I'm a little disappointed that GM execs have been so quick to employ the "let's get past this" stance. The body is still warm, the remains (old GM debt) still being buried, they next of kin (fired GM employees and investors) still in mourning, and they're asking us to turn our backs and move on. Come on guys - have some heart. And frankly (I hope GM is listening), I'm a little disappointed that GM execs have been so quick to employ the "let's get past this" stance. The body is still warm, the remains (old GM debt) still being buried, they next of kin (fired GM employees and investors) still in mourning, and they're asking us to turn our backs and move on. Come on guys - have some heart.

]]> By: tramposo24 http://curiouscapitalist.blogs.time.com/2009/07/10/will-the-new-gm-escape-the-curse-of-the-old/comment-page-1/#comment-14275 tramposo24 Fri, 10 Jul 2009 17:09:23 +0000 http://curiouscapitalist.blogs.time.com/?p=6093#comment-14275 Is the "new" GM, ostensibly owned by the government and taxpayers, paying any attention to the legions of Americans who will boycott GM vehicles because of the bailout? I realize that a boycott would actually make matters worse for taxpayers in the long run, but I've spoken with a lot of people who have been forming opiniions based on anger and emotion, rather than logic, for the past 12-15 months. I hope someone factored in the stain this company's brand now wears when they were calculating the cost/benefit analysis of saving GM. Is the "new" GM, ostensibly owned by the government and taxpayers, paying any attention to the legions of Americans who will boycott GM vehicles because of the bailout? I realize that a boycott would actually make matters worse for taxpayers in the long run, but I've spoken with a lot of people who have been forming opiniions based on anger and emotion, rather than logic, for the past 12-15 months. I hope someone factored in the stain this company's brand now wears when they were calculating the cost/benefit analysis of saving GM.

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