GM needs the sort of concessions they would get through bankruptcy, but they say they couldn’t make it through bankruptcy for some reason. Seems to be the destiny for GM to be caught between rocks and hard places. Too bad they chased off anyone with the initiative to get them out of those places long ago.

First quarter production cuts which are justified given the sales implosion we are seeing will decimate the gross profit and revenue numbers for the first quarter. They are cutting production for the first quarter by almost half in North America which will do the same to gross profit . Those remaining profit dollars already woefully inadequate to cover costs will now have to do double duty.

In business you watch your breakpoint which is where expenses equal gross profit. A dollar of gross above is profit and vice versa. The farther away from that break point you get profits or losses tend to grow exponentaly. This cut in production is already baked in the cake and Wagoner knows it.

But when we get into april he will put on his act and be shocked how bad the economy is and line up for more free money.

We the public are getting put together big time. Same rationale as the Vietnam War and the Iraq war get the commitment and then oh we can’t back out now and waste all that money we foolishly gave them . It goes on and on.

Well now, there’s the out. If you think the economy is going to pull out of its crash dive enough to stabilize, or improve enough to allow people to feel so secure that they go back out & start buying Detroit iron… I’ve got some hot beach property in Fargo you’re gonna love.