G.M. and the “Detroit Bailout Challenge.”

136
0

Riffing on yesterday’s post, here’s what I fear. GM is cutting, cutting, cutting to show it deserves a bailout. To wit “In July G.M. announced plans to cut $10B in costs and raise $5B thought the sale of Hummer brand, and new borrowing. On Friday, the company said it would cut another $5B, including slowing production at 10 factories and cutting capital spending next year by $2.5B – a move that will delay the introduction of several new vehicles.” (Source NYT 11/08/08.)   

 

This type of stuff won’t win the What’s the Idea? “Detroit Bailout Challenge.” It’s numbers crunching accounting stuff.  No vision.  Speed up the delivery date of the Chevy Volt. Buy the Smart Car company from Mercedes. Cut production of all SUVs by 75%. Now you’d be talking.  Be bold and win the challenge. Peace. (Oh yeah, and go St. John’s Red Storm!)