GM Is A Victim! Not!
June 24th 2008 17:17
Jerry Flint writing for Forbes says in Saving General Motors
The crisis at General Motors is not of its making. The economy is weak, gasoline prices are at record levels and the U.S. auto industry is in a big slump. Much of the blame lies elsewhere, but the auto giant is in peril.
Who was it that was caught with thousands of SUVs and was still building them while prices of gasoline were going up?
Who was it that is just now trying to sell its Hummer division now that everyone knows it's a gas guzzler and a driver looks like a consuming pig?
Who was it, to quote Flint, who "...wasted $2 billion on an investment in Fiat and many billions more on the Delphi spin-off?"
Who was it that "....wrecked GMAC, its car loan subsidiary, by lending mortgage money to people who could not pay it back?"
Who was it that canceled the electric car and is now betting everything on the Volt, an electric car?
Who was it that was "dealing with battery companies that have problems", when according to Flint, it ..."needs to get a joint venture going as soon as possible with a Japanese battery maker, and build batteries in the U.S.--both nickel metal hydride and lithium ion?"
Flint concludes:
The problem is that GM is running out of money and time. The decisions it makes over the next few quarters could be crucial to its survival. I worry whether GM has enough of the right leaders to steer the company through this crisis.
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