Sunday, November 09, 2008
Saving GM - throwing good money after bad?
For many years now, the issues facing the US auto industry have been known to all. The Big Three have many intelligent executives, yet market share has continued to drop for the past three decades. Back in 1995, Hedrick Smith, in Rethinking America, discussed how Ford and GM had finally seen the light and had started making changes. However, over the time since, none of them have succeeded in digging themselves out. Few long-established companies can ever really change the fundamentals. It might be more productive if the Government simply takes the money that it is going to lose, and uses it to start a completely new car company with none of the baggage of the old ones!