Thoughts On The "New GM"

Oddly as it may sound, as GM has entered bankruptcy there has been more optimism about the future of the economy and the auto market even in the near term. The Ford's and GM's numbers sales numbers have shown surprising strength and automakers are saying that they're seeing the th

Updated: 10 Oct 2024

That is good news indeed! Ford may just be able make it through this without government intervention, and GM could be as profitable as as early as next year. Chrysler on the other hand; well we'll have to see how that whole deal works itself out.

Regardless, it's true that through this process GM will be able to compete much better. Look at how much they have cut already and yet are still operating; talk about bloated! I'd rather have fewer but better products in the looks like that is what might happen. I'm just glad they didn't cut Buick! The 2010 LaCrosse is such an impressive vehicle and the brand really does have a lot of potential. That said, never underestimate GM's power to mess something up. I'm trying to be optimistic though!

Chevrolet and Cadillac stand to benefit a lot from this; focused marketing and more spent strengthening important models. GMC is based on Chevrolet's trucks with little cost to differentiate + higher prices + higher economies of scale = high profits. Buick can be the Lexus competitor it is supposed to be. I can see the 4 brand setup working.

What's interesting is the GM is making some smart moves when it comes to PR and has been engaging people over the future of the company. I was able to ask GM's CFO Ray Young questions, as well as GM's CEO Fritz Henderson. Pretty amazing! I was able to ask Young if GM was seeking offers Pontiac; the answer is that GM is "open to them". Fritz Henderson later responded to a similar question and said the company hasn't gotten any interest. Previously, they were only going to be shut down (like Saturn). If I had a hundred million or so, I'd be putting in an offer.

Here's one of the questions I had for Fritz Henderson:

What does it feel like being the CEO of a company with 60% government ownership? While the government won't be heavily involved, that must be an amazing responsibility to all Americans

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Fritz Henderson: we do have this amazing responsibility and we all need to be immensely thankful for the support, which is not popular broadly. this means we have the responsibility to deliver.by the way, a friend of mine sent me an email indicating that I am the ceo of a company that will have 300 million shareholders. actually, we will have 330 million shareholders, including the taxpayers of the US and Canada.

Pretty interesting fact there huh! Certainly is an amazing reponsibility. I am just as much against government ownership as ever. It's here though whether we like it or not! I like the plan that would discontinue centralized government ownership by distributing the shares equally to every taxpayer. I doubt that will ever happen though. The best we can hope for now is that GM succeeds and the government is out of whole thing as soon as possible.