This is not just GM
this is the entire US car industry thats on the ropes. they have already sold most of its lorry and bus manufacturing so without it Detroit the American vehicle is more or less dead and dependent on a few lorrymakers with only regional presence in North America.
The US car industry really lost the plot in the 1990:ies though. They had so many managers but no one even stopped for a second and considered what rising oil prices would do to their profit.
However this is not just about rising oilprices. Look at Ford in Europe and how much marketshare they have lost. Quality is also important and Ford & GM
seems to have forgotten this.
An example Volvo cars a profitable part of Volvo Ab was sold to Ford when Volvo decided to focus on its other focus areas. Ford bought it, since the purchase Volvo cars have gone from being a leading environmentalist to worst in class. Its like the entire organisation in Detroit refused to see what was happening. Volvo publicly asked for more efficient engines and less petrolconsumption for its cars but was told by Ford executives that the environment doesnt sell cars!
This was in 2006...
You really wonder under what stone these executives must have lived.
Volvo cars was known for safety, quality and environmental awareness.
Those were the first three things Ford cut down spending on. Makes you wonder what planet some people in Detroit came from. Volvo cars continued to be highly profitable until the first models done in cooperation with Ford was launched. That sort of says it all.
I am not interested in US Politics but I hope for Fords employees sake that they remember the year 2000 and the election.
They had a choice between one presidential candidate who was an environmentalist and a man who wanted to reduce debt. They had another who said environmentalists were fascists and who wanted tax cuts.
They choose the latter.
Result is a US debt that has grown from 4 trillion to 9.5 trillion. The car industry is facing death because it and the US chosed to ignore the environment.
One election was all it took for 100.000+ workers to loose their jobs...
I hope they remember how they voted because their vote did make a difference and no one can say they didnt know what was coming because both candidates were open and upfront about what they planned to do.
In the meantime across the street from Volvo Cars you find the big Volvo factory and Volvos global HQ
. This company, the worlds second largest or largest manufacturer of heavy vahicles (trucks, busses and construction equipment) depending on if you count a minority owned Chinese manufacturer, produces profits year after year. Steady and without cutting down on quality environment or safety. It has gone so far that Volvo wants Ford to sell Volvo cars so that the Volvo brand isnt being dragged through the mud anymore.
Even if us in the rest of the world are laughing that their strategy of not caring about the environment or the planet came back and bit them in their tails, we are now loosing variety.
30 years ago we had different cars, huge cars in the US, wonderful small cars from France and Italy, smaller family cars from Japan and familycars from Germany and Sweden. And rubbish cars from the UK...
All with a distinct flavour to them.
Today most cars look the same and it was really only the American cars that continues their own path. To me they still looked awful and I wouldnt be seen dead in one of them, but they do provide variety.
I guess its the same with most products in the world but I miss the days when I could say what country a car came from just by looking at it.
No One Likes Us - We Dont Care.