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The long, slow descent of GM

Posted Jul 07 2008, 02:00 PM by Minyanville
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The one thing you learn early on at the racetrack is that when the desperation sets in you can't run around like a lunatic feeling under seats for change and scraping together discarded mutuel tickets looking for a live one somebody accidentally tossed. Hell, at decent tracks they will immediately escort OFF THE PREMISES anyone caught collecting discarded mutuel tickets.

If this seems harsh, put yourself in track management's shoes. From a business standpoint, this makes good sense. They are trying to run a business that turns people into broken, desperate beggars; not host some kind of weird halfway house for people who got that way prematurely.

Unfortunately for General Motors, and all the more horrific for us, there's no such entity, no governing body with an enforcement arm possessing an all-powerful eye-in-the-sky surveillance system capable of identifying this kind of ugly, shameless degenerate behavior and then quickly shooing them out of our eyesight. No, we're forced to witness the entire grisly descent, the whole god-awful collapse into desperation.

Where will it end? This morning, responding to reports the company is probably going to axe thousands more salaried jobs and is hoping to sell off some of its brands, GM said No... they're only looking to sell the Hummer. This is shockingly bad timing, if for no other reason than the memory of GM giving everyone the finger and rubbing our noses in the oil splattered tracks left by these military transport vehicles remains so fresh, so vivid.

If our post-90s version of socio-capitalism were not so primitive, we'd be shielded from embarrassing sights like GM hawking off its Hummer line.  That the abandoned carcasses of these vehicles will soon be recycled into low-cost housing for the homeless is cold comfort.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Executive Editor Kevin Depew. Excerpted from Five Things You Need to Know. Click here for the other four things.

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Comments

 

I'm looking for the most inovative car company to come out with a car that runs on air!  Won't they take the market.

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Todd,

You have missed the boat about the purpose of racetracks. Tracks earn their money on gross handle. They take their percentage based on all wagers into all betting pools.It does not make a difference if favorites or long shots win, the track gets the same cut.

Suggesting that tracks want their patrons to become" desperate beggars", is at best, inaccurate, and at worst, rife with agenda based innuendo.

The tracks are trying to run a business - not harm their patrons so that they won't be able to return and wager another day.

Why are you bitter?

its comments like yours Todd (the media) that cause stocks to tumble, you wanna blame someone, blame the people that bid oil stocks so high they tend to kill everything america has going for it, you wanna blame someone, blame everyone in america that thinks he needs an SUV, don't blame the company that just gives what they want....fuel prices took a turn very fast, all manufactures are feeling the blunt, even Toyota......your a moron

Dan -

There are leaders, and there are followers.

Toyota, Nissan and Fuji (Subaru) have been leaders because they saw where the market was going to go - well-performing, well-built, innovative vehicles that have gotten better than average mileage.  They have classy, functional styling, and a minimum of interior flash. (I am on my 5th all-wheel drive Subaru that gets 29 mpg - all have lasted 185-250,000 with "reasonable" maintenance cost.)

Now consider the trade-in every 2-3 year Detroit car - ugly styling, too much chrome, poor mileage, too many electronic doo-dad add-ons - often overpowered for the  NASCAR wannabees who need vehicular Viagra.

You might recall we had gas shortages and high prices in 70's.  We've been there, done that, and have learned virtually nothing.

Darwin was right - dinosaurs die out.

hey dan-how's the sequoia,tundra,and of course all the lexus models doing lately? those are high quality autos,right.is it quality that sells these days or is it the perception that you and your msn cronies plow on the public.let's send all of our money and jobs out of the country.that's good for business.i remember when gm converted plants to aid the war effort;world war 2.sure, things are different now--right dan.

qudrcps, I drive a 450HP Supercharged Pontiac that gets 29 MPG on the Hwy, your full of it.

A fullsize Park Ave, Lucerne, Laccrose gets over 30 MPG, and has more comfort than any Subaru,Toyota.....People of this country are so misslead by the Imports.....GM makes even the newer V8's get better than 25 MPG, don't be fooled by what trucks get for milage, and Toyota is no better there.....Also I've been a GM Tech of 20 years and now Shop owner, I know the differance....Oh and last I checked, GM owns a small part of Subaru

I hate to disagree with you too Dan because I am a Camaro fanatic, but facts are facts.  GM's poor management led to their own crisis and fuel costs are irrelevant.  Want proof?  Glad you asked!  The 2008 Cobalt 2.2L DOCH ECOTEC on a 5 speed manual transmission gets 25/36 (intown/highway) mileage.  The 2008 Volkswagen Jetta 2.5L DOCH 5-cylinder on a 5 speed manual transmission gets 24/32 (intown/highway) mileage.  The missing element isn't fuel for GM, it's quality.  

GM's problem is that they have too many 3-piece suits sitting in the Ivory Towers who could care less about about making a solid vehicle, so long as their pockets are filled.  GM never wanted to spend the money on quality as it would have cut into their short term profits.  That my friend is piss poor management.  Don't you think for one minute that people working on a GM assembly line didn't want to roll a VW quality car off their line, but it's not possible when the department head is suffering from a lobotomy.  

I'm sure William C. Durant would be turning in his grave if he saw GM's condition right now.  Forgive them Billy, they f**ked up a good thing.

your wrong about the quality, you evidently have not driven anything above the Cobolt, and your comparing a car that costs far less then a VW Jetta.....the German cars are not better, and when something goes wrong, be prepared to get reamed.....But, I do agree there are some areas of GM that need change, and some of the upper head honchos do get to large of a paycheck, and also GM has to much tied up in retirements, but thats not GM's fault, blame the union ways for that.....I work on all makes in my shop, the quality is there, this is not like the old days, and if you compare quality against other makes, you will see GM is right there with um. The media has blown this so far out of proportion, saying things like "will GM be backrupt" thats why stocks fall, because some dumb ass writes an article saying they will, GM got caught with to many SUV's, but only because thats what america wanted, now its time to change, GM is sitting on 24 billion in profits, they will ride this out, so will Ford, Chrysler well thats another story

Let's hope that GM is finally on the right tract/I think our answer to clean air and our auto energy problem will be the electric car with Solar charging stations on every rooftop.

I envision a charging system somwhat like the Bart system.  When you stop at a shopping mall/you plug in/the owner gets money for your charge to pay for his investment on his infrastructure of charge ports and solar panels.

Of course the government could help with incentives.

I also feel we need suv for some functions/maybe the manufactures could work out a time share program when you buy an electric car.

Installation of charging stations could start up a whole new business.

Check out my novel  The Ark Society

Kevin Gray, Sure Lexas in up there in quaility, and it should be for the price you pay, but don't put the Toyota line at the top, because it fairs no better than GM or Ford......also, you guys are pickin on GM, you do relize they still out sold everyone

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