Based on the LAT's reporting, the carmakers' business plans raise a lot of questions, such as: Were these plans developed during the last two weeks? If not, why weren't they discussed in last month's hearings? If so, why didn't the carmakers have plans before the hearings? Why are the carmakers asking for different amounts of money or credit now than they were begging for last month?
Why does GM's plan talk about things GM will do in the future -- like sell or close Saab and Saturn? Why hasn't GM already done these things? If GM needs $4 billion before the end of the year why didn't they say that last month? Can't they project cash flow more than six weeks in advance? If not, they need new management.
Chrysler says it's survival depends on finding a merger partner. Are they negotiating a merger? Have they identified potential merger partners? If so, who are they? If not, why not?
Bottom line, it appear that GM and Chrysler can't survive as currently structured. Why pour good money into companies that can't pay it back. Ford appears to have a viable plan and appears not to need a bailout.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment