Quote:
Originally Posted by camaropete
At least they are putting together plans. Too bad that they weren't thinking about things like this 6 months ago, a year ago, 5 years. This should be a lesson to all of us: expect the unexpected and have emergency plans for if the worst happens.
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There is no way that anyone could have predicted the path of the economy over the last year. GM should have been more or less even over the course of 2008. Instead they are set to lose over 10B.
And what could they have done differently over the last 5 years? They have made drastic cuts to their workforce in an attempt to reduce cost, and they have been cranking out hit after hit with almost every new vehicle they introduce. They have come to an agreement with the UAW to significantly reduce their costs come 2010. They've quietly been streamlining their platforms. Despite all that, they are now reduced to selling off their remaining stake in Suzuki which gives them enough cash to last 4 days at their current expenditure rate.
I don't think there are many people who can take an instant and unexpected 30% pay cut and have enough in the bank to ride things out for 1-2 years. Thats essentially what has happened to the auto industry this year, the domestic automakers are faring even worse.
Pete, that wasn't all directed at you. You're post was merely an excuse to say a bunch of those things.