Why GM is in deep trouble and why we should get ready for the next bankruptcy and…. federally funded bailout!? And that despite significant increase in GM shares!?
The problem: GM, as I have stated in the past and today Oct. 9 confirmed by the WSJ has excess capacity and high fixed cost. In 2017 “GM built 7% more vehicles in North America plants than FORD but used 33% more assembly plants to do so.” Yet, GM focus continues to be spending $billions on acquisitions of startup and electric cars….
My warnings since 2007/8 have been ignored! Maybe this one will not be…. GM needs a new culture of courage, leadership and innovation. Mainly it needs a clear vision!
GM’s current vision is “to become the world’s most valued automotive company.” Seriously? What is that? is that looking into the future? Does that sound like what GM should want to become? its direction? its guiding informational initiatives? …. Not to me. GM’s vision sounds to me more as “lost in transformation.”