3/06/2009

GM Sinking into Oblivion


Reports yesterday [article link] that General Motors (GM), for decades the leading automobile sales leader, might have to file bankruptcy even with the money from the Stimulus Bill. Continued operating losses and sluggish car sales means this titan of the corporate world may soon go the way of the dinosaur. In fact, sales of it's automobiles are so poor, they will not have the cash to pay a one-billion dollar bond due on June 1 of this year. An accounting company stated they have "substantial doubt" GM can continue business due to an inability to have sufficient cash flow to meet it's financial obligations. This would be a terrible blow to an economy already on the skids in the USA. GM was already looking at laying off substantial numbers of employees, both white and blue collar workers, in the coming months. Now, it appears layoffs for virtually everyone is on the horizon.

I hate to see anyone lose their job. I really mean that with all my heart. But, GM, Ford and the Chrysler Corp. have for years ignored the quality and quantity of Japanese imports making such a substantial impact on the automotive business in the USA. The quality of cars by the Big Three has never matched the overall customer satisfaction with Honda, Toyota and even the South Korean imports, Hyundai. They made passive attempts at matching foreign imports. But, it just seemed to me the Big Three never worried enough about trying to take over the Honda Civic for MPG and safety. It never really cared much about fighting to counter the Toyota Camry. I bought my last American made car in May of 1988. It was a 1988 Pontiac Grand Am. That car was beautiful and I constantly got compliments on that blue, metallic finish it had. I was proud of it. What I was not proud of was the fact it had to go to the Pontiac dealer about once or twice a month. Once the extended warranty ended, it was only three weeks later that the automatic transmission died on me. I got rid of it. I was convinced that the Big Three were only concerned with what was on the outside of their vehicles. But, like so many things in life, it is what is on the inside that counts.

3 comments:

nice post love to read

You make many good points here. GM, as we know it, is finished.

I have always had the mindset to "buy American", and that included cars.

But these days, so many parts and other things of foreign cars are made right here in America. And since the bailout of the Big 3 auto industry, I have learned a lot.

So I am voting "No" on the bailout of GM by purchasing a Honda or Toyota mini-van the next time my wife and I purchase a vehicle.

Eat Well. Live Well.
ER BurnTheFat.com
PurpleGreenPops.com

gfx, thanks for the compliment.

Paul,

Like you, I always bought American...but that Grand Am changed me. That was the final straw for me when it came to buying American made cars. I know have an '06 Honda Civic and I couldn't be happier. What is sad to me is the child you are holding in that pic will be paying for the debt caused by the fools in government today. Thanks for coming by...and come back.

Related Posts Plugin for WordPress, Blogger... Please help the costs of this blog. Please visit our Sponsors on right side of the blog. Thank you!