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The view from outside
John, I'm sure I offended you. I apologize for that. My concern for GM's future is sincere and deep. I feel like I'm watching it self-destruct on autopilot.
My views about GM's future and the changes necessary for survival are those of an outsider. I've never worked for GM in any capacity. However, I've bought new GM vehicles exclusively since 1966. I've sure bought a lot of GM parts since then too. This loyalty probably can't be explained, but I know it's real.
I don't see anyone involved advocating change that would affect them financially. The white collar workers don't want to give up pay, bonuses, or retirement benefits. The UAW doesn't want anyone to lose their job or have reduced benefits. The retirees don't want to eat any of their support costs. The shareholders don't want a reduction in the expected $2/year dividend per share. And yet, the company is going broke at a breathtaking pace. A year ago GM cash reserves were described as more than $30 billion. Now the reserve is down to less than 15 billion after a yearly loss of only around $5 billion.
Maybe I'm wrong about the future truck market. In fact, I hope I am dead wrong. But to bet the whole company on that market expanding immediately with the introduction of GM's new trucks in early 2006 is, in my opinion, extremely foolish. An aggressive, company-wide cost reduction program is going to be required to avoid bankruptcy even if the new trucks are over-the-top popular. I don't see a single Swinging Richard within GM who's willing to voluntarily give up a dime to save the company. I'm very disappointed and more than a little angry about it.
John, I'm sure I offended you. I apologize for that. My concern for GM's future is sincere and deep. I feel like I'm watching it self-destruct on autopilot.
My views about GM's future and the changes necessary for survival are those of an outsider. I've never worked for GM in any capacity. However, I've bought new GM vehicles exclusively since 1966. I've sure bought a lot of GM parts since then too. This loyalty probably can't be explained, but I know it's real.
I don't see anyone involved advocating change that would affect them financially. The white collar workers don't want to give up pay, bonuses, or retirement benefits. The UAW doesn't want anyone to lose their job or have reduced benefits. The retirees don't want to eat any of their support costs. The shareholders don't want a reduction in the expected $2/year dividend per share. And yet, the company is going broke at a breathtaking pace. A year ago GM cash reserves were described as more than $30 billion. Now the reserve is down to less than 15 billion after a yearly loss of only around $5 billion.
Maybe I'm wrong about the future truck market. In fact, I hope I am dead wrong. But to bet the whole company on that market expanding immediately with the introduction of GM's new trucks in early 2006 is, in my opinion, extremely foolish. An aggressive, company-wide cost reduction program is going to be required to avoid bankruptcy even if the new trucks are over-the-top popular. I don't see a single Swinging Richard within GM who's willing to voluntarily give up a dime to save the company. I'm very disappointed and more than a little angry about it.
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