Bailout Plan for GM

November 13th, 2008 at 02:40pm Bob Trojan

While the debate goes on about whether the government should bail out GM, I’ll weigh in with my opinion.

Yes, the industry has made many mistakes and I blame management for the majority of them.  Many jobs are at stake when you add in all the suppliers and service organizations.

GM has expanded into key growth markets like China and Russia and also committed major blunders, including a costly alliance with Italy’s Fiat SpA, heavy use of margin-eating sales incentives, a push by its finance arm into subprime mortgages and a turnaround plan that was based on steady truck sales and left the company vulnerable when gas prices soared.In the meantime, the foreign companies are building new plants in the U.S. and taking market share from the “Big Three”

Maybe GM, Ford and Chrysler should sell off all their foreign owned companies and ventures and focus strictly on the North American market. If you can’t be successful in your home market, why play in somebody else’s yard?

Fix the U.S. market and forget the rest until you’re healthy.

Sometimes “bigger, more” isn’t the answer.

Entry Filed under: Management, Economy