Bailout Watch 472: PTFOA Rips GM a New One [Download "Determination of Viability: GM" Here]
The Presidential Task Force On Automobiles (PTFOA) came, they saw, they laughed. Well, maybe not laughed. But there’s a kind of humor in the fact that the PTFOA shot holes in every single one of the company’s assumptions. The quango’s “ Determination of Viability Study; General Motors Corporation” is, to say the least, not kind to the automaker’s assertions. Looking forward, some of GM’s stakeholders have a lot to worry about. Dealers: “These underperforming dealers create a drag on the overall brand equity of GM and hurt the prospects of the many stronger dealers who could help GM drive incremental sales.” European ops: “The European business is seeking additional capital beyond the funds requested from the Treasury. These funds have not been allocated and thus represent a risk to the viability of GM’s current plan.” Strangely missing from this report: any mention whatsoever of labor costs. Nothing, save “legacy liabilities.” Huh.
Not fast enough, smart enough, current enough,etc.,etc. Pretty much sums up what TTAC has been saying all along.
The PTFOA's WTF report could have been written several years ago by anyone who has been remotely astute at watching the Big 2.8 spiraling around the drain. There's no thought leadership there. Or at least no evidence of it.
Fiat is going to "give" chrysler it's best platforms? Where does the money come from to completley retool existing chrysler plants? If there is no bankrupcy, who picks up all of the existing chrysler liabilities? If gas stays low, who buys these Fiat economobiles anyway? If gas goes up, who buys these Fiats anyway? You need credibility to sell high end merchandise. The Japanese and Germans have it, the Koreans are getting it and the dynamic duo of GM & chrysler. have lost it. Bringing Fiat to the USA to do battle with the likes of Hyundai, Honda, and Toyota is not really a fight at all. The Asians have crafted their cars over 30 years for the American market. The stuff we get here is not ususally seen in Japan or Europe. You just don't set up shop from Europe and find that sweet spot here. You also don't help Chrysler's quality image with the name Fiat. The fat lady is arriving, see you all.