"Crime of the Century"
Ken Elias looks at GM's government-mandated turnaround plan and concludes:
GM’s plan was too late. It’s the plan that should have been implemented in 2005. Saab will return to Sweden—if the government there forks over the 17 kroner necessary. Otherwise Saab will be toast by the end of the month. Saturn and HUMMER will wither and die—unless Chindia gets tired of waiting for a C7 liquidation.
Don’t think so. India’s auto tycoons aren’t stupid; they’ve watched Ratan Tata drive Land Rover/Jaguar straight over the metaphorical bridge to nowhere. Mahindra & Mahindra has stopped making noises about entering the US with rough and tumble SUVs and chicken tax surmounting mid-size pickups. China may buy a US brand or they may not. If they do, GM will get pennies on the dollar, if not actually having to pay someone to make Saturn, Saab and HUMMER go away.
President Obama should laugh directly in the faces of GM and Chrysler and tell them to go pound sand -- or better yet, to show themselves to a bankruptcy judge, pronto. Nothing less can save either company.
Except for the "new" Chrysler, which is pretty much doomed no matter what.
Article printed from VodkaPundit: https://pjmedia.com/vodkapundit
URL to article: https://pjmedia.com/vodkapundit/2009/2/18/crime-of-the-century