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Without chapter 11 you still have 8 brands when you only need 2-3, you still have thousands and thousands of dealers you no longer need. Yes come 2010 the VEBA will kick in and costs will lessen but there is still a 2-tier wage system that has some GM line workers making about the same as they do now. There are still contracts in place that mean you can not move a piece of equipment yourself or by anyone except whom the contract stipulates can move it; even if that causes the line to shut down.
Federally backed chapter 11 allows you to keep only the dealers, brands and factories you need to make the company profitable. You could pour 200 billion into GM alone and all you would do is delay the inevitable. You will never see a return to 50% market share in NA by GM. There is too much competition for that and it will only increase. Ford, GM and Chrysler be need to be lean and well lead with defined goals and strategies to stay in business. They also need to do everything better than their competition. Better designs, better reliability, better resale, better fuel economy, more powerful, greener, etc.
I want to see a future of when I take my son car shopping and there isn’t any reason to look at a foreign car because we already know that the best is built by Chevy, Ford and Dodge. I can’t say that today.
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