Saving GM

It is sure looking like a rescue plan for GM is going to be a very close thing.  While I believe we have to do it I am glad that Congress is demanding a plan that is going to require some painful changes in Detroit.  GM in particular is being run into the ground and needs to undergo a radical reshuffling if they hope to survive.

 

The first thing they have to do is dump brands.  Pontiac, Buick, Chevy and Saturn all chasing the same consumer makes no sense in today’s world.  It was a decent plan back in 1960 when they had 50% of the US market but today it just cannibalizes sales between divisions.   They can keep some of the iconic nameplates they have, a hot rear drive platform could be a Pontiac GTO of example, but they can keep an entire division afloat.  Set up three divisions and three sales networks.

 

Cadillac does Caddies and maybe sells one car that carries the Buick badge.  No trucks. Chevrolet sells Chevies as well as the one or two Pontiac nameplates that survive.  They get pickups, vans and SUV’s.  GMC goes back to selling real trucks, not Silverado pickups with a big GMC logo on the front.

 

Next they need to take on the UAW (I am an old, card carrying union guy so I am not anti-union but the UAW is out of control).  The union and management need to work together to make the company more profitable so they have a bigger pie to split up.  Trying to get a bigger slice of a fast disappearing pie is idiocy.  The UAW needs to get on board with fixing the automakers of go away.  There is no middle ground.

 

And they have to control executive pay.  These guys have been getting huge bonus check to watch the ship sink.  That has to stop. Now.  

 

Dave

 

Email me at davegess@yahoo.com