| Don't you just love it? General Motors | | | | to price your product at a number that |
| can't make a quality car to save its | | | | allows you to take a profit out of the |
| life, which is what it's trying to do, | | | | sale. That's how you lose money, and you |
| and it wants Nissan to give it billions | | | | can't make it up on volume. |
| of dollars to show respect for a failed | | | | You also have the issue of your |
| company. Over the last couple of years, | | | | competition's pricing. The other guys |
| you have heard of failed nation states, | | | | are giving their customers perceived |
| many of them in Africa. Countries that | | | | value and real value. The value is so |
| can't feed themselves, and have just | | | | great, that it is disallowing you a |
| about as much wealth as is necessary to | | | | profit in the vehicles that you are |
| put an embassy in NY, so their diplomats | | | | putting on the market. It's that simple. |
| can dine at the United Nations, and park | | | | But wait, there's more!! |
| overnight with diplomatic plates. | | | | Toyota, your main rival for world |
| Now we have failed corporate states like | | | | supremacy just came out with a new Lexus |
| General Motors who can't get out of | | | | LS 460 with built in features that GM |
| their own way, and probably have no | | | | isn't even thinking about. It's not even |
| justification for remaining in business | | | | on the drawing boards at GM. THE LEXUS |
| other than the fact that they've been | | | | CAR PARKS ITSELF. It's got sonar |
| around for something approaching a | | | | distance finding devices that link up to |
| century. If you really think about it, | | | | its navigation system. This thing can |
| other than the employees who would | | | | pull into a parallel parking position |
| anyone miss General Motors if they went | | | | with the driver basically watching the |
| out of business tomorrow, maybe even | | | | car park itself. |
| today. The remaining players would | | | | Mercedes will envy the paint job at |
| immediately pick up their market share, | | | | twice the price, and a first ever |
| and we wouldn't have to watch the slow | | | | 8-speed transmission. How does a car |
| market attrition that is taking that | | | | with 380 horsepower get 19 miles to the |
| share down anyway. | | | | gallon anyway? With a crash sensing |
| There will come a time if they remain in | | | | system that prepares the brakes and |
| business, that only aliens coming to | | | | airbags for the coming impact, this |
| visit our planet will buy General Motors | | | | Lexus may give new meaning to the word |
| vehicles. The news recently is | | | | safety. What's going on here? For |
| ludicrous. Carlos Ghosn runs | | | | $70,000, Lexus will give you a car that |
| Nissan-Renault. This man has done a | | | | BMW, and Mercedes can't even dream about |
| world-class turnaround over the last | | | | making for the price. |
| several years, making billions of | | | | I have talked with representatives of |
| dollars for a company that very few | | | | the Japanese automobile companies. They |
| thought could be turned around. | | | | think GM is on the ropes, and who can |
| Rick Wagoner is the typical corporate | | | | argue. The old giant is pumping out iron |
| bureaucrat that spent decades at GM | | | | that just doesn't do it anymore. The |
| while its market share slid down the | | | | only employees happy at the company are |
| tubes. The two of them have been talking | | | | hebephrenics on the assembly line who |
| about some sort of consortium at the | | | | are taking too many pain killers. |
| behest of GM's major shareholder Kirk | | | | There's also Chairman Rick Wagoner who |
| Kerkorian, who wants GM turned around | | | | appears to be constipated in every |
| tonight, today, yesterday. Wagoner has | | | | interview he gives, and wants a |
| now decided that Nissan should pay GM | | | | financial tribute from Nissan to boot. |
| billions of dollars for GM's perceived | | | | The Future of GM |
| greater value. | | | | General Motors will continue to exist. |
| What value? Hey dude, you just lost $10 | | | | If the consumer bought only on the basis |
| billion last year. You've bought out | | | | of quality, and bang for the buck, GM |
| thirty five thousand employees that you | | | | would have filed for bankruptcy years |
| can't find work for. You're a textbook | | | | ago. The consumer buys for other reasons |
| case study in how to lose money by | | | | though, aside from quality. Some have |
| selling inferior products, and you | | | | never driven a Japanese car, and |
| believe you bring greater value to a | | | | wouldn't consider it. Once you drive |
| partnership with Nissan, than Nissan | | | | Japanese, buying American cars becomes |
| brings to you. HELLO, ANYBODY HOME? | | | | unthinkable. Some buyers live in |
| One of the first lessons anybody learns | | | | sections of the country where there is |
| if they are active in the stock market | | | | peer group pressure to buy American, |
| is, you have to deal with reality, not | | | | such as the Midwest. |
| your perceived reality, but what's | | | | People on the East coast, and West coast |
| really taking place. GM has yet to do a | | | | however have basically shunned GM's |
| full, truthful self-assessment and | | | | vehicles. The Big 3 automaker will never |
| figure out where they are. What are you | | | | recapture anything in those two markets |
| doing wrong? You can't be doing things | | | | again. I can't imagine how they turn |
| right, and lose $10 billion in a year. | | | | around corporate morale. With seventeen |
| You've got sales all right, but your | | | | layers of management compared to |
| customers are so disenchanted with your | | | | Toyota's five, I don't know how anyone |
| product that they are not allowing you | | | | is proud to say, "I work for GM". |