Quote:
Originally Posted by Dragoneye
So does their own plan. Without the associated risks of bankruptcy. It puts them in a position to make money at 12 million units a year. Well under the 17 million average for the past decade. 
And remember, this billions of month thing is not entirely of their own doing. If the economy hadn't tanked, and nobody expected it would go this poorly, they wouldn't be asking for this loan at all. |
I have studied their plan somewhat and it does not address enough in regards to brand re-organization (Holden, Opel, Vauxaul, Saab and the cost associated with those companies doing their own product design, development, branding, marketing and managing), production capacity (too many factories running at under capacity even in the best of times), union must give further concessions. There are still billions of cost savings to be made imo.
We have to keep in mind that other foreign car manufacturers face the same market conditions yet are still able to make a profit. Why is that? A lot can be said about GM's pensioners/healthcare but that's nowhere near the only problem.
If we all believe in capitalism, then we all agree that every company must be able to stand on it's own 2 feet even at the worst of times. We put money away for rainy days to keep us going. When GM was making money on all the SUV's they were selling, how much money did they bank? Zero - why? Because even in the best of times, it is not able to make a reasonable amount of profit.