The Biggest Casualty, So Far, Of A Nation Divided Against Itself - General Motors

By Gary Wiram | 06/01/09 | 11:38 AM EDT | 2 Comments

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Lunatic Foreign Terrorists Brought Down The WTC Twin Towers 
 – GM’s Collapse Is A Fully-Domestic Self-Inflicted Wound

My first visit to New York City’s World Trade Center was in 1979. The company I worked for, at that time, had a branch office on the ground floor of one of the buildings in the WTC complex so I was there on business. A few years later, in the mid-80s, I was there on business again. The company I was working for then held a fiscal-year-end celebration dinner at Windows on the World (aka Windows), the renowned restaurant that occupied the 106th and 107th floors of the North Tower. And, while on vacation in the early-90s, I got to visit Top of the World, the observation deck at 1,377 feet, atop the South Tower. What a blessing it was to have those experiences! And what magnificent structures they were! Literally and figuratively, they were a high point, symbolizing the great strength of American Capitalism. With their magnificence, it was well beyond my imagination that on a beautiful September day in 2001 a small band of maniacs, who hated everything the Twin Towers stood for, would bring them down, along with nearly 3,000 lives. Those who were responsible for that were identified, though. Many have been brought to justice and we continue to pursue justice for all who were responsible.
 

When I was born, General Motors was the world’s largest automaker. At that point, it had held that distinction for 17 years and it would continue to do so for the next 60 years. What New York City’s World Trade Center symbolized about the great strength of American Capitalism, Detroit City’s General Motors was, in fact. As I completed my formal education in the 50s and 60s, the optimum target for anyone with a business career in mind was a job with GM. And, as I carried out my business life, starting in the 70s and continuing into the new millennium, GM continued to serve as the standard metaphor of the ideal employer/business-partner. Considering that, in the heyday of my working life, General Motors reached its zenith, employing 349,000 workers in 150 assembly plants; you can understand that it was well beyond my imagination that on the first day in June, nearly 101 years after its founding, the once seemingly all powerful industrial giant known as General Motors would announce its bankruptcy. Unlike the disintegration of the WTC Twin Towers, the colossal collapse of GM wasn’t the result of foreign terrorists; it was the result of domestic ineptitude on the part of our Captains of Industry, our Wizards of Wall Street, our Labor Leaders and Politicians of all stripes. While Khalid Sheikh Mohammed is having his nasal passages regularly hydrated, Osama Bin Laden is living like a mountain goat and their compatriots are ducking real bullets; the dim-wits responsible for GM’s fall are shooting blanks at each other with their pointed fingers.
 

What’s needed here is for all of us, including the above-mentioned dim-wits, to draw together and do what President George Bush said he was going to do in the midst of the WTC ruble. Whether or not you were/are a GWB fan, his words from that time serve as a great example for the appropriate response to today’s disaster. The paraphrase I’d use is … "We hear you! And the rest of the world will hear all of us soon!" It was that attitude, not an attitude of Reds just opposing everything Blues are in favor of and vice-versa, that made America and American Capitalism so great in the first place. Some call it synergy … the whole being greater than the sum of its parts. My favorite label for it is the one that goes back to the founding of our country … Yankee Ingenuity. That’s the attitude that made it possible for us to accomplish things like winning a two-front world war. At the center of that successful effort was American Industry and an industrial giant named General Motors. If we truly want to regain the greatness our nation has known, we must rediscover that attitude and fully embrace it. That will require all of us and the leaders we choose, to stop the finger pointing and actually consistently extend our hands “across the aisle” instead of just paying lip service to that need.

TAGS: American Capitalism, bankruptcy, General Motors, GM, Yankee Ingenuity

 

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GM's Demise

There are many ways that government can stimulate the economy, buying the majority of a US automobile and financing mega-business is not one of them. Normally in a Chapter 11 Reorganization operation the business streamlines its operations, divests of some of its investments in sideline brands and products, reduces its overhead, and recreates itself through reorganization and reassignment or layoff of its labor force. Many times the reorganization may mean a merger with another company who markets the same type of products. The mergers are painful and don't always end with the initially-intended results.

There is nothing really wrong with GM products -- auto sales are in a slump all over the world after INTERNATIONAL/DOMESTIC banks and US consumers made bad business decisions in the housing market. Credit card rates soared and people used credit to buy beyond their means to repay the charged debts. GM and other auto manufacturers were into the credit card, car loans, and insurance financial markets when those markets failed last year.

I'll bet that GM Chevrolet Division is the primary GM breadwinner and Buick is currently one of the albatrosses (Buick was the original brand that started GM over 100 years ago.) Somehow GM could not quit building white and silver rental car image models. In the late 1990's GM was be more eager to offer the "rainbow-of-colors" marketing scheme for the most popular sport models that attract more new car buyers than their "practical" sedan models. Then something changed and the early 2000 era cars became too conservative for US tastes. The new Malibu, Tahoe, and Camaro were a desperate attempt to gain back market share and brand loyalty. They just can't counter the red ink from the "rental car" models inventory glut that GM has created (my opinion).

The US Government is now influencing the design and development of a specific brand's cars and no longer setting universal standards for ALL CARS. Even the Europeans are less socialistic than the current political posture of Congress and the President of the United States towards automobiles. GM executives and the Automakers Union are selling OUR American Ingenuity souls for the short term bailout money. Thoughtless outsourcing, poor marketing, and US auto market products saturation have brought GM to the recent (and rediculous) bankruptcy decisions that are unprecidented in American business history.

We have six GM automobiles and trucks -- five are Chevrolets and one is a GMC Envoy. Our trust in GM has been good, up until now. Maybe it's time to buy a Ford because GM has given up on our brand loyalty by selling out to the Government (a very large bureaucracy of bloated agencies who can't even maintain a freeway network well, let alone tell an auto giant how to maintain its business operations.) Who is gaining here? -- Surely not the American industrial base and the American consumer...

Submitted by SW WA Patriot on Wed, 06/03/09 - 01:18 AM » | Print
 
 
Sean Harry said (on A Few Days With Figgins) ...

This is one of the best written paragraphs I've seen in a LONG time. Nicely done Gary. This IS the issue, isn't it?! -- "Unlike the disintegration of the WTC Twin Towers, the colossal collapse of GM wasn’t the result of foreign terrorists; it was the result of domestic ineptitude on the part of our Captains of Industry, our Wizards of Wall Street, our Labor Leaders and Politicians of all stripes. While Khalid Sheikh Mohammed is having his nasal passages regularly hydrated, Osama Bin Laden is living like a mountain goat and their compatriots are ducking real bullets; the dim-wits responsible for GM’s fall are shooting blanks at each other with their pointed fingers."

Sean Harry

June 1, 2009 9:15 PM

Submitted by Gary Wiram on Thu, 06/04/09 - 08:41 AM » | Print
 

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