Tuesday, November 22, 2005

Saving General Motors: 104

Dealing the the unusual children...

But first, a comment: "There is absolutely no plan, strategy or intention for GM to file for bankruptcy." Richard Wagoner, Chaiman of General Motors Corporation

Excuse me, Mr. Chairman:

I know that you are a brilliant man, else you would not have made to the top of the world's largest automaker BUT do not count the count public as idiots or even worse, fools. Your job at the helm of General Motors is to, NOT only think of every possiblility BUT to have a plan in place to deal with the contingency. Hence; I find this comment rather laughable...

But of course, if you mean those words then you should not be leading this company because you would be failing in your duty: and while we are at it; your recent plans for saving the company is only dancing around the problem.

They are not going to work because all that you are doing is minimizing the ultimate problem which is DUPLICATION of product. You need to restructure the company and that means getting rid of those numerous divisions...

Which bring up an interesting conumdrum: What to do with with your bastard products?

Saturn began as a bold experiment but jealously and in-fighting have made it just another division of General Motors; and while its products are somewhat different, there are but the same as say, Chevrolet or Buick. The styling is closer to SAAB, if anything else but what is the basic difference, other than spreading employment around the globe?

The Hummer is at the other end of the scale: a sacle down Military vehicle that has seen better days in the sands of Iraq but now, is based on the Tahoe frame and to offer more choice (which is always good), you have downsized it even more in the form of the H3.

Hint! The H3 looks like a short fat xoman with extra hips!

The Corvette is the American muscle car; capable of running with the big boys at a fraction of the cost. Its history speaks for itself and I won't bore you with the details...

But what to do with these vehicles, seeing they don't really fit with the restructuring plan that I have offered. I am inclined to suggest a bold plan of rebranding these three vehicles under the Cheverolet brand and then spinning off this unit as a seperate entity.

And if seperate, then it means they either sink or swim on their own merits. Investors and car enthusiasts could buy this company and take these products where they really need to go: Upscale! One added bonus of spinning off these three brands is reintroducing the small man back into the automobile business. That's probably not a bad idea, given the current climate of business these days and you could score brownie points of creating the David and Goliath syndrone...

The Corvette could possible grow to take on Ferrari and the Hummer, well, you get the idea. You could pocket a hefty piece of change from the deal and reserve the option to rebuy the vehicles later.

Reserve but not recommended!

Better plan would to sell them through your network but that would entail changing the entire structure of the much vaunted dealership (Thoughts on that later)...

Then there is SAAB, which is not a North American division but has enjoyed the exposure as such. I leave that problem to your imagination, sir but it is possibble to exist peacefully with the Swedes on this one; personally, SAAB needs their own dealerships.


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