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Re: [sls002]
by circlew on Sun Sep 28 18:23:05 PDT 2008
The business model says: make a profit. When it stops making a profit, you need to change it. When you are as big as GM and you wait too long, your business breaks. In other words, when costs force you to make products that "cost more" than your competition, you do not make a profit. Of course the UAW was/is a problem but greed and arrogance of management is also a problem that forces labor costs to rise. I liken GM to the credit mess fostered by greedy financial institutions. Now, they are forced to change. Not too meaningless when market share continues to tank. For more meaning, Gm will run out of cash next year and need a bailout to change the product mix. What else will convince you the model is broken? Bankruptcy? A little too late to turn one of the biggest companies around to the new era in business without terminal results It's called less command-and-control and more flexibility to adapt to faster market deltas in a GLOBAL environment. It's called not having 7 divisions with copy cat models that compete against each other. It's about top dealer service and selling products that are top quality and highly desirable in a new value proposition for customers as market conditions change. It's about competitive design, engineering and manufacturing models that are in a flexible, continuous improvement mode. It's about sharing regional platforms to reduce costs. Logic says that when your cash holdings exceed your entire valuation in the stock market, some Wall Street shark is going to swoop in, snap up the good parts, and toss the rest. Companies with bloated factories and workforces got religion the hard way 20 years ago, in the days of "Neutron Jack" Welch. And with today's more active boards, CEOs who consistently lose ground to the competition usually don't need Donald Trump to tell them they're fired. GM is extremely late to the table. Hence, a broken business model that is very hard to change as fast as market forces dictate. Regards, OW
Re: [sls002]
by circlew on Sun Sep 28 16:51:15 PDT 2008
The basic reason that GM is not making a profit is that it costs more to build the vehicles that they can sell, than the price that they can sell them for. The price that GM can charge depends on the market place (or the competition). The cost of building cars depends on a number of things over which GM has limited control. No, bad business model is the reason at the end of the day. Competition has good business model. That's why they over price their cars and wind up with deep incentives to move inventory that is pegged to a certain level of projected sales. I assume you forgot to look at sliding market share. The model is not working. GM has limited control why? They did not change when change was needed. Now they are forced to downsize real fast. Remember what Jack Welch said: "Change before you have to." GM was arrogant and did not want to change. :P Regards, OW
Re: [anthonyp]
by circlew on Tue Sep 16 18:29:53 PDT 2008
Tony and TM, you guys are so right. Just trust in yourselves. BTW, here is a great line for the Financial Industry right about now...it's a quote from Jack Welch. "Change before you have to." They must have missed this! It is also spot on if you think about the auto industry and in particular, the Detroit Three. Quite resounding for both,indeed!. They seem to never learn and thus, repeat the pain. What a Circle of Woe! Regards, OW
Re: reputation [mrpushrod]
by circlew on Wed Sep 17 03:36:17 PDT 2008
The market talks. I know nothing in comparison. The media loves Honda and Toyota. Where have you been? I posted this quote by Jack Welch on other forums which is appropriate at a time when the the Detroit 3 and the Financial Industry are experiencing hard times: "Change before you have to." The US manufactures are ridiculous! Watch the customers not me. When a product is good I buy it. When there is better, I follow. The G8 is good. I am not sure how much it will help GM since it is in limited supply so far. Regards, OW
Re: Buying Big3 Cars??? [alltorque]
by circlew on Tue Sep 16 13:35:33 PDT 2008
It all boils down to a nice quote from Jack Welch: "Change before you have to." When it comes to the Big 3, this resounds quite stunningly, don't you think? Regards, OW
Re: gagrice [marsha7]
by rockylee on Thu Sep 04 20:39:30 PDT 2008
...it appears to me that rocky would vote for Satan himself if he found out he was a former UAW member... I love labor unions more than most folks I admit.....however Satan, would never have been a union member, and more likely a CEO, like Neutron Jack Welch or Roger Smith, because they liked to watch people suffer while they benefited financially. ;) rock: enjoy your union kick while it lasts...think of it like enjoying the ice on a 100 degree day while the heat melts the ice in your glass... Your on a roll today, eh ??? :P ...... I think McCain's RNC convention was a bunch of slamming and playing the fear card like in 2004. :( I saw no evidence beyond more of the same trickle-down economic plans from McCain. 4 days later I have nary a clue how he's going to improve the economy for working class people like UAW members. :cry: Any luck with a security job yet???... Left them another voicemail, again and they still haven't called me back. My best guess is their contracts were cancled because Gustav, wasn't the super hurricane we were expecting and it didn't hit New Orleans, directly !!!! I'm suppose to be receiving a call from a temp service tomorrow and I'm going to apply for a TSA, job tonight because I heard they are hirring from a friend. "The Rock"

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