GM ANALYSIS eMOTION! REPORTS.com: Restoration Of General Motors Viability A European Solution Of Einsteinian Simplicity?
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eMOTION! REPORTS.com 2008 Archives ...
eMOTION! REPORTS.com 2008 Archives
GM had, and has, within its own arsenal of products a means to have taken on, and taken out, any competition within the auto industry, on or offshore. If it only had the courage to utlize this surprisingly simple, elegant, and effective solution.
The near sale of Opel -- thankfully thwarted by forward thinking European governments, not an internal dispute with the GM board by certain members of the executive hierarchy as has been alleged -- nearly removed this capability to tap into a vast and capable design, engineering and manufacturing capability nurtured and honed over decades in Europe.
Rather than attempting to further decimate the size and scope of production capacity on the European continent, it should instead re-read Sloan and remember that the auto industry is volume driven. Which is to say that reduction of units drives down, not up, revenue generation potential.
In our view, the US government should immediately end this experiment of bringing in non-industry personnel to run one of the most complex -- and historically powerful -- industries in the world and replace them with those who are posessed of the skillsets to return GM to its former greatness.
In so doing, the US industrial base can be restored and fully capable of neutralizing the threat currently represented by China, which unfortunately at this moment, has de facto control of an American company once so critical -- and still can be -- to the nation's economy and therefore its national security.
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