Domestic auto sales are expected to drop another 24 percent this year, after an 18 percent decrease in 2008. General Motor’s restructuring plan involves building cars in China and shipping them to America. No recovery in demand for U.S. vehicles is expected before 2010 or 2011.
General Motors Reportedly To Bring China-Built Vehicles to U.S. by 2011 (Edmunds.com)
Executive vice president, F. Alan Smith, outlined a gloomy picture. From 1980 through 1985, GM spent $45 billion in capital investment, yet increased its worldwide market share by only 1 percentage point, to 22 percent. Until mid-1986, the capital-spending plan called for an additional $35 billion through 1989, but that had been reduced. “For the same amount of money,” he told the GM managers, “we could buy Toyota and Nissan outright,” instantly increasing the market share to 40 percent.”
Quotation from Maryann Keller, Rude Awakening. GM has been losing market share since 1962.
More bailouts? You have to be kidding me! Say NO America.
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Ack.
I agree with Abigail. I’m not sure if anythig really ever came of CNN’s Lou Dobb’s award-winning series “The Outsourcing of America”. It shocks me that GM stayed stodgy for so many years instead of slimming down and adapting. Sad. Ford will be around…and so will Seraphine!
)!!!!!!
That is just ridiculous. To spend that much for so little gain makes zero sense. How do companies like this exist? And why are we supporting them? With management that bad we should be recruiting them for government.
An interesting concept bailing out companies that make dinosaurs.
We have caught the disease over here too.
You already know what I think about this stuff.
Today’s illustration is wonderful.
…. and meanwhile, the peasants have no bread to eat. “let them eat cake”
the blood is rushing to my head and giving me a headache just looking at that brilliant illustration.
“Sure, we’ll bail you out — but only if all shareholders, bondholders and employees holding options are immediately expropriated with absolutely no compensation whatsoever, and if everyone in the company immediately accepts a salary cap of maximum twenty times the lowest-paid employee’s salary, including all bonuses, benefits, freebies, toys, perks, incentives and whateverthefuckelseyouwanttocallthem. Still want that bailout, or is your personal wealth more important to you than the future of the company?”
Well, duh. What did everyone think was going to happen?
Things really have not changed. The people in the bottom always suffer. I too need to be bailed out of this stupidity : )
I see the quiet desparation on the streets here…while the monied note how pleased they are to have escaped the worst.