G.M. Reports Big Losses

Is this the beginning of the end for GM as we know it? Here is the New York Times report of GM’s last year earnings: G.M. Reports Big Losses
as Its Woes Grow

George Bush reportedly said that he would not want the U.S. to bail out a failing car company. Quite right too — did I just agree with Bush? — All the talk about health care costs being at the root of GM’s problems is only part of the story: they make rotten cars, and have done for years. Their focus on SUV’s is coming home to roost. As is their bad, and in-bred management. Any company, like both Ford and GM, that finds itself in a major retrenchment mode has to look at its management. The shop floor workers always take the fall, but it is lousy management that led the company to the brink of failure. Once I see CEO turnover and slashed bonuses, then I’ll know that GM [and Ford] get the message. Then there will be hope for recovery. Until that point we can expect more bad cars and lots of hand wrenching, but little chance of an upturn.