GM is "a victim" of the credit crisis?

  • Thread starter Thread starter Agent Smith
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Agent Smith

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Why did they manage to take a loss of $70 Billion - before the bailout?

Why are they still offering training vouchers if they have no money?

Why hasn't anything changed there???
 
Not really, no.

GM is a victim of the rise of the professional managerial class. This is a big group of know-nothing (mostly) men with fancy-sounding MBAs from top-flight schools. The problem with the MBA, however, is that it's a cocktail degree. It teaches you nothing, qualifies you to do nothing, and further impresses upon its holders the need to put short-term profit above all other concerns.

The result is that the people running GM don't know about, and don't care about, cars. Their company then produces and markets absolute rubbish, and fails to foresee even the most obvious coming market trends. They reward themselves with lavish salaries and bonuses even while they are running the company off of a cliff. And since shareholders in the USA want to be able to hold stock without actually taking part in shareholder meetings, the executives are able to get away with it. It's the stupid leading the blind.
 
I don't understand of how not reporting it daily reasons in this. The fact is that GM has had its hands on tech for years that would have revolutionized the industry.

If they would have stayed ahead of the markets expectations they would have been rolling in cash. They invested too much in eye candy and crap like On Star.

They are only the victims of a LAZY business strategy.


Too much greed and not enough concessions by all.
 
Umm maybe because they don't report it daily.
You do know what Q1 Q2 Q3 Q4 means right?

This is also the reason why laborers will felet he crunch of economic problems before Wall Street reacts to it, and why a recession could have already started long before symptoms are widespread.
 
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