GM Death Wish

Found on Instapundit:

VOLT ENGINE PLANT ON HOLD: “Word is that GM has shut down construction because it doesn’t have the cash to pay for steel structural members.” Ouch.

At The Truth About Cars link:

The new Flint, Michigan engine plant slated to build the ICE for the Chevrolet Volt has been put into deep freeze. AP (via Yahoo) has this latest tale of woe. Word is that GM has shut down construction because it doesn’t have the cash to pay for steel structural members.
[...]
Only four short months ago GM said it would spend $370 million building the new engine plant, and scored $132.5 million in Michigan tax incentives for its efforts.

If this vehicle is really GMs future, building the facility should be the most (or really close to it) important activity at the company.

I think GM’s inept executives and managers and short-sighted employers have a death wish.

Please, no bailout for GM.

Chapter 11 is the way to go. Wipe out the stockholders. Clean out the execs. Break the union. Toss the dealer contracts.

A smaller, different GM maybe be able to survive.

About these ads

4 Responses

  1. In fairness to GM, there’s probably an hour-by-hour timeline in either GM’s headquarters — or their lawyers’ — mapping the distance from now to their bankruptcy filing.

    Who knows what Bush is up to, but if he wanted to make sure GM went through the bankruptcy process, he’s done everything right (down to sinking the Congressional bailout by ‘warning’ the Congress if they don’t do something, he would.)

  2. “If this vehicle is really GMs future, building the facility should be the most (or really close to it) important activity at the company.”

    Agree with Dan. This is a long term investment. If I’m GM I’m consolidating to what earns not what will potentially earn. It’s a bit late for that. Five years ago that strategy would have made sense.

  3. I hope you guys are right.

    But…

    Has GM even done emergency layoff yet? NO. Sales are down 50%. Nobody is buying the cars they are making…so why are they still building inventory!!!!

  4. Since the Volt is going to have a $40k price tag…it is going to fail.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 224 other followers

%d bloggers like this: