Osler's Razor

I thought this was interesting.
 

Well, I'm sure if poor management is the problem then having the efficient and brilliant folks at the United States Federal Government running GM will surely solve the problems.
 

Not that I understand the financing behind this catastrophe, but two anti-competitive items jumped out at me as I read the summaries of the bankruptcy:

-The new GM can't buy cars from Japanese suppliers or have cars made in Japan or some other (cheaper/more efficient) nations.

-As a condition of GM's sale of its successful OPEL division in Europe, the purchaser of Opel can't expand into the U.S. or China. China? Why not?

These lame attempts to continue to try and prop up this dinosaur are doomed to failure.

And of course, the government is going to kill the one product line that GM did make that Americans wanted, namely trucks and large vehicles.

As anyone who worked outside of a law office or political job in a big city like Chicago knows, this is a BIG country and our economy depends upon the use of larger vehicles for a whole host of reasons.
 

-- The Red Wings will bring money and tax revenue into the City of Detroit by winning. Not billions, but certainly tens of thosands, if not more. Don't knock it completely.
 

RRL, I'll make a bet with you. If GM fails in 4 years due to govt mismanagement, I'll buy you a round at Scruffy's. I'll fly to Waco to do it.
 

zroom, zroom....

What we need on the road are more gas guzzling military style Hummers? Good riddance to this division of supposed passenger all purpose vehicles.

To bad for Saturn - a brand people really liked.
 

Well, I guess the question Lane is what defines failure? I mean, I have no doubt that there will be some propped up company called GM that is given every advantage by the government in terms of regulations and competitive restrictions, etc., just so Obama and Co. (along with you and your comrades) will be able to point to the genius of government management or ownership, and to keep those voters in Michigan convinced that their 1920s jobs will still exist in the 2020s to that they will keep voting for the Benevolent One.

So, I guess I will take your bet knowing that I can't win. But, when I lose I will come to South Padre (this is clearly an excuse to go to South Padre) and we will share a bucket at Wahoo's and argue long and hard about the merits of national socialism.
 

The future for automotive production is in China (and to a lesser degree in India and in Vietnam).

One can speak of mismanagement, corporate greed, and the greed of unions among other things, and perhaps, there is a kernal of truth behind all these assertions.

Ultimately, in the American market, however, the decrease in market share for GM is breathtaking.

In the late 1960's, GM had 70% of the American market. Last year, it was 18%.

The business model was unsustainable, no one will argue that.

But, why is that?

In the early 20th century, railroad companies thought of themselves as being in the railroad business and not in the transportation business.

Perhaps, the same could be said of GM in the post War period.

Ultimately, the question is, "What is the future of transportation needs in the various markets of the world?"

And secondly, the more foundational question from which this one springs is, "How do we (or people in other countries) want to live?"
 

GM's market share decreased so sharply because of mismanagement.
 

I'll define failure in different terms than market terms (which, as you point out, are different than success). If GM is not making well-built, fuel efficient and desirable automobiles in contrast to domestic and foreign automakers, I'll concede failure.
 

It hurts my soul to see you write that the Red Wings going up 2-0 is not important.
It's possibly the most important thing in my life right now.... which also hurts my soul.

tjw