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I understand GM’s position of trying to stay out of bankruptcy and not further pass the burden onto the U.S. Tax payer. It’s a noble one but unfortunately it is flawed. Mistakes have been made in the domestic markets past, quality issues, relability and not having a balanced portfolio of cars. This is being fixed but GM especially is handcuffed in what it can do. Franchise laws prohibit shutting down brands without due compensation which GM doesn’t have. GM has 8 brands when they only need 2-3 at most. Saturn, Pontiac and Chevy all make cars that directly compete with each other Cadillac and Buick? Why have two “Luxury” divisions? GMC? Rebadged trucks and SUV’s.
I’m all for GM, Ford (not Chrysler) getting the funds they need to turn themselves around. The problem is they can’t truly remake themselves into a 21st century company with Chapter 11 protection. GM needs chapter 11 to shed the excess brands, dealers and competing models. It can’t operate like it has 50% of the North American market when it only has 20%.
This is a hard pill for lots of dealers and other employees but it’s necessary. The question is do you want a lean and strong American Manufacturing base or do you want to continue the malaise that has perpetuated for the last 40 years in bringing us to this point?
Bankruptcy would be the ashes that the Phoenix of GM would arise from. Anything else is just band aids on festering wounds that will eventually end to an American Leyland.
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