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6 Bumps

Is the government putting the final nails in the GM coffin?

The reality is that GM seems to be making the same mistakes all over again. Less than two years after the government's historic $50 billion taxpayer bailout of the Detroit automaker, now forever known as "Government Motors", the troubled company installed its fourth CEO, Dan Akerson - another "finance guy" to be sure, but far more concerning to GM's long-term health, also a creature of Washington

Automotive News piled on, suggesting that so far, Akerson's leadership has been defined by "hubris," panning reports that GM is planning to double Chevy Volt production from 60,000 to 120,000 units next year. Rechtin argues convincingly that even with the generous federal tax credit of $7,500, the Volt's steep $41,000 price will make it impossible to sell so many units. All this, despite the fact that the Volt - which Akerson touts as the "soul" of the new GM, isn't even making money for GM - since it costs upwards of $40,000 to build each car. Indeed, leave it to Government Motors to spend tens of billions of taxpayer dollars producing a product that doesn't make any money.

These are just a couple highlights read the whole article. It doesn't look good for GM.
http://www.realclearpolitics.com/articles/2011/02/05/when_government_motors_fails_again_108733.html

Answer Question
 
Carpy

Asked by Carpy at 10:03 AM on Feb. 5, 2011 in Politics & Current Events

Level 39 (114,053 Credits)
Answers (18)
  • I always figured that this would be the demise of the company. Government can't even run government correctly or efficiently, they certainly don't stand a good chance with a large corporation. I was against TARP and the bailouts and all of the stimulus' and government rebate incentives. Cash for clunkers was one of the most ass backwards incentives out there. I have absolutely no confidence in our government running private or publicly traded private sector industries. When they tell you that they have to pass a bill to find out what's in it, that tells me every little bit I need to know about how they conduct business.

    QuinnMae

    Answer by QuinnMae at 10:08 AM on Feb. 5, 2011

  • I hope not! I really want a Volt, and I always buy GM cars. I was hoping that they would catch on, so the prices would come down a little.

    So, people have a problem with GM if they don't make enough hybrids and electric cars, but whenever they try to do it and come up with a great car that's named North American Car of the Year, people still aren't going to buy them?
    pam19

    Answer by pam19 at 10:13 AM on Feb. 5, 2011

  • My issue with trying to bring more electric cars to the showroom floors all for the sake of saving the environment, they still need to be charged with electricity, which is made how? Not to mention the batteries that the car has and disposal of those batteries causes pollution as well. If people want to drive them then great, but if there isn't a demand for them, especially at the price they charge for them, then it's just money down the drain. The fact that they offer a rebate tells me what I need to know about them.

    QuinnMae

    Answer by QuinnMae at 10:17 AM on Feb. 5, 2011

  • Flooding a situation with money doesn't fix a problem. It treats a symptom. It doesn't appear that the company ever addressed the issues that Lee Iacocca was able to fix. He is gone, and they ran his company into the ground....again. Now, the underlying problems are still there, and the money is gone. Lee borrowed from the gov't, fixed the company, repaid all the loans early, and was able to turn a profit. They need another Iacocca or go bankrupt. I don't see an Iacocca on the horizon - too bad.
    jesse123456

    Answer by jesse123456 at 10:21 AM on Feb. 5, 2011

  • Seems like GM is putting the final nails in the GM coffin.
    skittles1108

    Answer by skittles1108 at 10:27 AM on Feb. 5, 2011

  • My issue with trying to bring more electric cars to the showroom floors all for the sake of saving the environment, they still need to be charged with electricity, which is made how? Not to mention the batteries that the car has and disposal of those batteries causes pollution as well.

    ----

    I do have some concern about pollution from batteries, especially in all electric cars. I like the Volt, because it's a plug in hybrid. It's partially electric and partially gas powered. After it uses up the battery power (maybe after 40 miles?), it just switches to extended range mode, and the battery can be recharged at home. You don't need to have external powering stations. For most people, it would just use the electric power for their normal commute and would use gas for long range trips.
    pam19

    Answer by pam19 at 10:29 AM on Feb. 5, 2011

  • LOL Maybe Ford should buy them.
    Actually GM has sold many more cars overseas than here in the states anyway. I guess if they can't sell them all here they can ship them overseas and sell them there. It may take a few years but they are toast.
    itsmesteph11

    Answer by itsmesteph11 at 10:56 AM on Feb. 5, 2011

  • The Volt is just as bad for the environment as a traditional fossil-fuel burning car (because of the battery production and later disposal). I think that GM is riding a lame horse with this one. Some people will buy these because of the cache - but at the end of the day there is no way they are going to sell all those units. The government is putting a lot of pressure on automakers; GM needs to say NO and produce cars that people will actually buy.
    Scuba

    Answer by Scuba at 11:41 AM on Feb. 5, 2011

  • ; GM needs to say NO and produce cars that people will actually buy.

    Problem is, GM is being ran by a handpicked Obama operative.
    Carpy

    Comment by Carpy (original poster) at 11:48 AM on Feb. 5, 2011

  • Honestly, I have never expected them to survive. They never addressed their main problem....legacy costs. They made it worse by investing a lot in a vehicle most people won't buy either because it is too expensive or they see it as just another type of pollution creator. Add all of this to a floundering economy....it isn't surprising.

    IMHO, no company is too big to fail and if they make bad choices they should be allowed to fail. Failure brings about new opportunities for others.
    yourspecialkid

    Answer by yourspecialkid at 1:00 PM on Feb. 5, 2011

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