Quote Of The Day: Least Necessary Use Of The Word "Obviously" Edition

Edward Niedermeyer
by Edward Niedermeyer

We obviously were micromanaging our cash — down to the penny, down to the minute — because that was our lifeblood

GM Spokesman Dan Flores in an Automotive News [sub] story on GM’s decision to pay suppliers weekly instead of monthly. The savage irony? By making payments monthly, GM actually had a harder time managing its dwindling cash pile during the bad old days referenced by Flores. And now? “We’re not going to save money by doing this,” says Flores. “But it’s a better, more reasonable, smarter way to run the business.” On the downside, the changes won’t mean suppliers will get paid any sooner as GM plans on maintaining the 47-day lag between supplier delivery and payment. Plus ça change…

Edward Niedermeyer
Edward Niedermeyer

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  • Andy D Andy D on Sep 24, 2009

    Like the old joke. How do you get paid? Weakly, very weakly.

  • Ktm Ktm on Sep 24, 2009
  • 26theone 26theone on Sep 25, 2009

    ?? It costs more money to send checks more often so I dont see how this helped and obviously it didnt in the grand scheme of things.

  • Bryanska Bryanska on Sep 25, 2009

    26, if there's any way to stay more liquid, it's a better business decision. It's all about having dollars today versus tomorrow, because a dollar today can be invested. Sending checks often, if it means having more cash, is a better bet than paying all at once. Of course this has to be managed so you're not piling on debt interest, but even that might have to happen if you're up to your ears in assets & inventory with no cash to fuel the furnace.