GM announced today that it is cutting 30,000 jobs and closing 9 plants. Why? Because they are losing money. Why are they losing money? Because they are not selling enough cars to cover expenses. These expenses include retired workers, current workers and benefits. The imports do not have these committments, so if they sell a car for the same price as a GM vehicle, the profit margin for the import is greater. They can use that greater profit to advertise more and to improve the quality of their product. Do I feel bad about this bit of news? A little, until I realize that GM did this, or allowed this to be done, to itself. Who loses? People who work for GM, own stock in the company and the general economy. To a degree, we all do. The picture is of Richard Wagoner, GM bigshot, putting on his best sad face. Hey Dick, here's an idea, start taking advice about selling cars from people who are actually selling (or not selling) the cars. Who knows better than they about what the buyer really wants.
