Word: gm
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Dates: during 2000-2009
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General Motors' foreshortened bankruptcy, which was finished with the emergence last week of a "new" GM, owes a thank-you to the Chrysler Group for blazing a short, quick path through the courts...
...just talking about financial institutions or companies in general, such as GM? It applies to any kind of firm that isn't solvent. It doesn't matter if it's a car producer, an industrial firm or a financial firm. It should be encouraged or even compelled to file for bankruptcy. When you keep on bailing out institutions indiscriminately, there is no incentive for them to be prudent in what they're doing, because they know that whatever they do, whatever problems they create by their own behavior, the government will come along and bail them...
...think the auto industry should not have been bailed out? If GM was on the verge of bankruptcy, it should have been shut down. There's all this capacity in the production of cars, but there isn't a market that can absorb all that these firms are prepared to produce. If jobs are lost, then jobs are lost because these are firms that cannot exist, because there is insufficient market demand for their product. And if there is no such market demand, they should not be allowed to exist. Let the market decide if these firms deserve to exist...
...Detroit's strategy of focusing on its profitable lines working? Neither GM nor Chrysler is profitable yet. Going forward, however, both companies' recovery plans call for concentrating on vehicles that promise an adequate return. They will continue to focus on their profitable lines, such as Chrysler's minivans and GM's pickup trucks. But both GM and Chrysler will be adding new, small cars to their lines by 2011, as they say they will make a profit on those vehicles with rising gasoline prices...
...notes that the Japanese automaker's sales totals continue to suffer from California's economic crisis as well as its real estate downturn. "It's not one thing: it's real estate, it's availability of credit, it's unemployment" that's hurting California sales, he says. Mike DiGiovanni, GM's general director of market analysis, says the present economic numbers suggest that a modest improvement in economic conditions is under way but that it's still very fragile and could use more stimulus. GM's lawyers warned in bankruptcy court that the company might have to start the liquidation...