Question Of The Day: What Does GM Need To Prioritize In Its Reorganization?
As thing stand now, All three automakers will present plans for reorganization to the congress by December second. Five days later, Detroit’s caravan of love will kick off its pilgrimage to Washington, where the three CEOs will hold an encore performance of their famed congressional testimony. The reception that awaits them in our nation’s capitol will depend largely on how candid the second round of testimony is, and how viable the new reorganization plans are. Now that everyone is well aware of the fact that they are screwed, Rick, Bob and Alan must convince congress that they can dig their way out. Since GM claims to already have “a plan,” lets take a moment today to speculate on what that plan is… or should be. My feeling is that Wagoner’s credibility is so weak that he has to open with a structured bankruptcy offer to avoid being laughed out of the hearing room. If he agrees that brand and dealer cuts are necessary, GM just might get the bailout. Given his pathological performance thus far though, I’d guess Wagoner’s pride (wait, that’s not the right word) won’t let him. He’ll probably talk up the cuts to truck manufacturing, hype the Cruze and Volt and suggest that maybe the union might give some ground soon. And he’ll jet home empty-handed to start Chapter 11 proceedings. Your thoughts?
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I think he is communicating with Pelosi right now on how much to ask. There will be something, not even resembling solution to the problem: Volt promises and some crap about achieved already level of quality. There will be more threats to economy if GM goes Ch 11. And magically he will get the money. His attorneys are negotiating right now who will get what out of this bailout: how much will go to which campaign fund (congressman, senator), and how many votes UAW will deliver. That's the plan, there was never another one and you can't invent restructuring plan in 2 months, much less 2 weeks.
Mr. Wagoner has been marinating in the GM culture for too long to bring about the change necessary to save GM. You are asking him to do something that is completely beyond his ability. He literally cannot imagine doing anything differently, and really does see GM (and, by extension, its management) as being the victim of external forces. GM needs an outsider to clean house, but who would want to take the helm at this point...?
YuSubabaHos? WOW... I haven't laughed that hard in... forever.
ferrarimanf355, Thanks, I'll be here all week. It's a different show at 11 o'clock. Don't forget to tip your waitresses, they're working hard for you too... BTW- That was a brainfart/typo. It's supposed to be YuSuburbaHos. Hope that's at least as amusing.