Quote:
Originally Posted by classicman
This alternative seems to be the most viable. ... Bust it up and let the strong survive.
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GM intentionally restructured itself to make any breakup as difficult as possible. For example, all engineering was removed from the divisions. Many assembly plants were reconstituted into General Motors Assembly Division so that a breakup would be most difficult. It was done at the highest levels of GM management. Statements from many now retired GM executives.
How does one sell off Pontiac when their cars are made on the same assembly lines as Buicks and Chevys? Just one example.
Meanwhile a breakup does nothing to solve the problem. For example, too many platforms. VW does all models with only 3 platforms. Last I saw, GM had at least 13 platforms - I suspect that number is higher. GM even makes three different intermediate sized cars that don't share even one part. That is one problem.
Any solution (ie breakup) must solve these problems. Problems include too many platforms, built in factories that still are not flex type, using obsolete technologies (as some technologies were obsolete even 20 years ago), without management that comes from where the work gets done, and too many layers of management, in an industry that already has enough other companies that make superior products.
A breakup would not solve even one of those problems. GM wants to sell Hummer, Saturn, Pontiac, and Saab. Only Saab might sell. Nobody can make money on the other three. To sell them, GM would have to include guarantees (just like Mercedes did to sell Chrysler to Cerebus). GM would not provide guarantees to operations that would inevitably fail.
Best money comes from breaking down the factories and selling off the machines. GM is worth more in disassembled pieces than the entire company combined because it product designs are that inferior. For example, Telsa might be in the market for sections of a GM assembly line - to assemble their product in CA. It was one thing DeLorean desperately needed and could not get - used standard technology assembly line equipment.
Time to save Pontiac, Saturn, et al was back in 1991 when the spread sheets said GM was this bad. Instead, bean counters played money games for almost 20 years (and did not fix the problems). So economics takes revenge. Those divisions are worth only the equipment on factory floors. Since America must sell off things to pay of massive debts, that used equipment is best sold overseas.
Same occured in the mid and late 1970s.