A common fiscal conservative (free market) viewpoint is: if any company is run badly, they deserve to fail to competitors who run their businesses better. By applying this to GM, we can deduce that since they have failed to compete (pumping out SUVs well into a downtrend), they should fail. That’s what you’re not hearing from the mainstream media these days. Instead you are hearing about unions, healthcare and a need to shove the blame on employees (something the entire U.S. auto industry has to deal with, including Toyota, Nissan and Honda).
The nationalist froth is coming out too, as the age-old phrase “announced they will raise prices in order to let GM compete with them.” is becoming the renewed mantra of the protectionist. Even Toyota, fearing a backlash from flag-waving American consumers (who are too idiotic to realize that the Toyota they buy in America was built by American workers), has
To make matters worse, GM laid off 25,000 employees — about a fifth of it’s workforce — and decided to “compete” too late in the game by though I doubt it.. Does anyone else find the irony in that 25,000 employee discounts are already guaranteed moot. Maybe if they sell 25,000 Hummers, that will make up the difference,
Personally, I own a previous model Pontiac Grand Am, which I am not terribly enthusiastic about due to various mechanical issues and annoyances that crop up periodically, and didn’t have plans to by another GM because of the problems I’ve had with this car. And now, any hope I had of buying a Toyota is shot to hell until this anti-competitive fiasco is over. Great job corporate geniuses, instead of encouraging consumer spending, they just killed it for potential Toyota buyers.
What’s next? Mobile phone companies raising prices because the local phone company isn’t getting enough revenue from land-lines? Import duties so that American companies can stay open a little longer? Just more pissing in the global economy wind for another decade until wages and cost of living finally hit a wall they can’t climb over with legislative help.
Shame on GM’s executives for planning for the short term, and shame on Toyota for succumbing to irrational nationalistic fervor. Let GM fail (or downsize) with dignity, and let Americans buy other cars at competitive prices if they choose.