Thanks to its car ignition problems, General Motors is recalling 29 million automobiles worldwide. If you’ve ever scanned the price of an auto repair you know the labor is what gets you, not the parts – so you can imagine how that number is going to hit the GM bottom line. Like a 29 million pound tank. GM’s most profitable cars are its huge SUVs. It is reported that a $60,000 Suburban provides $10k in profit while an energy efficient Chevy Cruz yields $1,500 in profit. We all know which car is better for mother earth, but GM, which has the power to move the market away from gas guzzling, likely won’t. Too much to lose. GM’s share of the SUV market is now up to 70%. (Seen a picture of the smog in China lately?)
Ford’s new aluminum body F-150 pick-up truck is a step in the right direction. SUV loving Chrysler/Dodge/Fiat is bracketing its large car and truck sales with some much better looking Fiat 500s…very cool and efficient cars of the future. My Prius has over 165,000 miles on it, saving me about $9,000 in gas and cutting pounds of carbon into the atmosphere.
Here’s the point. GM, which is about as American and Apple you know what, continues to lose its way. The corporation needs a strategy and a leader. A leader with beyond the dashboard vision. The old gray mare is not too big to fail. Not anymore. American’s love our metal, but we love our amber waves of grain better. Peace.