Throwing Out My Opinion on the Auto Bailout

[SVOboy]

I like to keep politics off of EcoModder, since I really feel like ecomodding is a non-political issue, even if there are some political reasons to get into. That’s why I am so hesitant to write this post: I don’t want to inject politics into a site that I think is better off without it. [...] Related posts:

1. Bailout Plan Gives Tax Break to Bicycle Commuters
2. Interview with Auto Alliance’s Charles Territo on EcoDrivingUSA
3. Auto Industry Desperation: “Small Cars Are Disposable and Bad for the Environment”

More...

[MazdaMatt]

I like it

[Daox]

Well thought out and rational points Ben.

[captainslug]

I don't understand how a set of companies with a business model that hasn't been updated in 40 years still refuses to rethink the way they do things. There are plenty of car manufacturers that are making a profit at the same time that Ford was operating at a net loss of 5.8 billion dollars.
If I were on the board of a company in that situation I would be hoisting the CEO up by their petard and pushing for restructuring of both the company direction, budget, and 5-year business plan.
Instead, GM continues to be the last company to adapt to changing consumer demand, and this means that most of the time they are 3 to 5 years behind the rest of the market when it comes to introducing products into any given market segment.

They are stifled by both executive ineptitude and unions with a death grip on the nuts of those in positions to make the decisions needed to change the company.

GM is a sinking ship that's on ablaze. And the executives seem to think that letting it sink is a sensible solution for putting out the fire. The problem isn't the sinking or the fire, it's the inability to adapt.

[DifferentPointofView]

^
True that yo. Its the reason they're not the biggest auto company anymore by relative sales and Toyota is.

[dichotomous]

Originally Posted by captainslug

I don't understand how a set of companies with a business model that hasn't been updated in 40 years still refuses to rethink the way they do things. There are plenty of car manufacturers that are making a profit at the same time that Ford was operating at a net loss of 5.8 billion dollars.
If I were on the board of a company in that situation I would be hoisting the CEO up by their petard and pushing for restructuring of both the company direction, budget, and 5-year business plan.
Instead, GM continues to be the last company to adapt to changing consumer demand, and this means that most of the time they are 3 to 5 years behind the rest of the market when it comes to introducing products into any given market segment.

They are stifled by both executive ineptitude and unions with a death grip on the nuts of those in positions to make the decisions needed to change the company.

GM is a sinking ship that's on ablaze. And the executives seem to think that letting it sink is a sensible solution for putting out the fire. The problem isn't the sinking or the fire, it's the inability to adapt.

its entirely because the people who run the company are not interested in the company, they ONLY care about making money themselves. this explains most of the problems in the larger firms in the US.

[FastPlastic]

Originally Posted by dichotomous

its entirely because the people who run the company are not interested in the company, they ONLY care about making money themselves. this explains most of the problems in the larger firms in the US.

True that.

Ford said they may not even need it. I guess they can make payroll for another year. Don't divert the money that was going to be used for development. Tesla from what I understand put in for $400million to double the life of their battery packs/Build the production line of the four door sedan(500mile range with the new packs or a drop of $20,000 from what I understand). If they want the money make them work for it. They can put in an application for it just like everyone else.