BiggnightsWill General Motors Survive?
July 4th 2008 02:28
GM stock closed at the lowest price since the Eisenhower administration this week. With growing overhead from retired union members, slow sales of the big cars that GM is best known for, the tumult for high(er) mileage cars, increased competition and the chaos in the financial markets what is next for GM? Some people are hinting at bankruptcy court!
Only time will tell what path the executives, bankers and shareholders at GM will do. However, the message should be clear for politicians and consumers alike: Fifty years ago what was "...good for GM was good for America", but the demands of unions, tax collectors and various other "good intentioned" people have come quite close to killing the goose that laid golden eggs. How much more will a bail-out or failure cost than to have left GM to invest earnings into new plant and technology research?
And don't lose sight of Ford, at half of GMs per-share price and also at a 52-week low. Could the United States be seeing the end of its domestic automobile industry? Will anyone take notice if the country that invented mass production stops doing it altogether?
Only time will tell what path the executives, bankers and shareholders at GM will do. However, the message should be clear for politicians and consumers alike: Fifty years ago what was "...good for GM was good for America", but the demands of unions, tax collectors and various other "good intentioned" people have come quite close to killing the goose that laid golden eggs. How much more will a bail-out or failure cost than to have left GM to invest earnings into new plant and technology research?
And don't lose sight of Ford, at half of GMs per-share price and also at a 52-week low. Could the United States be seeing the end of its domestic automobile industry? Will anyone take notice if the country that invented mass production stops doing it altogether?
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