Originally Posted by fastball
Therin lies the catch 22 GM is stuck in..... no one in their right mind will pay anywhere near sticker for a GM car, so in order to move them they have to slash prices. By slashing prices, they can move the product. In the process, they loose profit, but if they don't slash prices, they don't sell.
Which is why GM's only option is to declare bankruptcy, and once reorganized, they must produce cars which people are willing to buy not because of price but because of product.
Today's world demands results in both product and profit..... not one or the other, but both.
I still think you should check out what Ganley's got on sale. Not because the sale will help GM; every car that Shelton here sells, GM must lose money on.
(I'm talking about cars; since Shelton got the GMC franchise, I don't think he's sold one Envoy or Yukon.) Same as Golling or Noonan; all these cars sold, and none of them does anything except induce complacency at GM. "We're not doing as bad as they say we are; we do sell these cars we produce." Yes, but at what cost!
But you are saying what I'm saying everyone else, which is the same among the more clued-in types on GMInsideNews: GM needs to kick the labor and supplier contracts that they can't afford, and they can really only be done through bankruptcy.
Bankruptcy may or may not change the management and board of directors (the latter is arguably as bad as the former) ... but I don't know. It depends on how much you think the bad practices are ingrained into GM culture.
h: