Quote:
Originally Posted by fastball
I don't buy it. Not one bit. They make those cuts over the last 10 years, all the while still building SUVs for Chevy and raking in the cash on those, and today GM is smaller with less overhead, less debt, and not burning through $2.5b a month. The cost of axing the divisions would have been around 10 billion. It takes $999,999,999.00 + $1 to equal a billion. That's what makes their current situation so huge..... the money they burn through in 4 months could have gone to cutting the fat. Thus, stopping the hemorage.
I figure it would take about 10 billion to cover everything if you want to axe 2or 3 divisions. A year ago, they had the cash to do it, and then the hemorage would have eased. Maybe not stop completely, but they would still be ahead of where they are now.
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You're proposition is too simple. That's why I don't buy what you're saying,
though I respect (and somewhat agree) with your position. Particularly the "cutting the fat" comment....how many people have they just layed off/forced...*hrmhrm*..."persuaded" into early retirement? There's very little fat left at GM...what is happening to them now, I am convinced has nothing to do with brands or "fat". Their attitude and philosophy going into this probably didn't help -- but what they are going through is just a prime example of what everyone's going through --
nobody is buying things!