GM’s Ransom Note (via Streetsblog)

No doubt, the economic peril facing Detroit’s big three is daunting. However, this overly dramatic video from goes too far in predicting a total collapse of the auto-industry.

I am of the opinion that for too long Detroit has refused to innovate and diversify. Thus, I have very little sympathy for them, and in fact hold a fair level of contempt because those leading those corporations have been rolling the $156 Billion dice for too long. in effect jeopardizing the hundreds of thousands who actually make the industry work.

If a bailout comes, it must include provisions that not only make our cars more fuel-efficient, but also retools GM to allow ‘transportmaking,’ as suggested by this op-ed in this weekend’s New York Times.

1 Response to “GM’s Ransom Note (via Streetsblog)”

  1. 1 Gabriel Lopez-Bernal

    I highly recommend Thomas L. Friedman’s recent Op-Ed:

    “How could these companies be so bad for so long? Clearly the combination of a very un-innovative business culture, visionless management and overly generous labor contracts explains a lot of it. It led to a situation whereby General Motors could make money only by selling big, gas-guzzling S.U.V.’s and trucks. Therefore, instead of focusing on making money by innovating around fuel efficiency, productivity and design, G.M. threw way too much energy into lobbying and maneuvering to protect its gas guzzlers.”

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