Saturn Brand Finally Prononced Dead
After 19 years of losing money, the Saturn brand is being pronounced dead by GM and prospective purchaser Penske. In the enclosed article it appears that the brand will be closed down and the losses will end. My question is; Why did it take so long?
If you or I owned a company that had not made money in 19 years we would be considered fools for subsidizing it after about the second or third year. GM is hailed as a pillar of the US economy and one of the iconic brands of the country. Apparently it is run by fools if they can't figure out that a brand should make money to remain solvent.
Now I would like an explanation of the statement that they can build more cars for our other brands at the facilities so they will avoid layoffs. Does GM have models that are selling well enought that they really need to increase production? Is there really enough buyers, qualified buyers with cash or credit available, to justify increasing production of any of their models? I suspect that the truth is GM is running in fear of union pushback if they announce any more layoffs at this time.
The reality is that GM needs to figure out how to sell more cars in a hurry. They need to build something that people will actually want to purchase, or the taxpayer money spent on bailing them out has all been a complete waste.
If you or I owned a company that had not made money in 19 years we would be considered fools for subsidizing it after about the second or third year. GM is hailed as a pillar of the US economy and one of the iconic brands of the country. Apparently it is run by fools if they can't figure out that a brand should make money to remain solvent.
Now I would like an explanation of the statement that they can build more cars for our other brands at the facilities so they will avoid layoffs. Does GM have models that are selling well enought that they really need to increase production? Is there really enough buyers, qualified buyers with cash or credit available, to justify increasing production of any of their models? I suspect that the truth is GM is running in fear of union pushback if they announce any more layoffs at this time.
The reality is that GM needs to figure out how to sell more cars in a hurry. They need to build something that people will actually want to purchase, or the taxpayer money spent on bailing them out has all been a complete waste.
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