Tuesday, March 31, 2009

My 3-Step Solution for GM

Here's my white guy with blue eyes solution for GM:

Step 1: Declare Bankruptcy and Restructure
Get out of the union contracts and pension obligations. I'm done with unions. I'm sorry if you are in a union and you love them, but they are outdated. Companies have to take care of their employees now, even if their employees work in China, Indonesia, or South America companies no longer get away with treating their employees like crap. Its not 1920 anymore. Unions are just another way to allow people to be lazy. I bet that people have been more productive since September of 2008 than they have been in years because they are now competing to keep their jobs. If you are in a union, you don't have to compete for your job and you get paid more than you are worth. Its a burden that companies can't bear, especially when their product is crap (see step 3).

Step 2: Stop Making Cars that Suck
GM makes the following cars that are terrible: the Cobalt, Aveo, Malibu, Impala, and the HHR. This doesn't include the entire line of Buicks, Hummers, and Pontiacs that can go as well. Don't get me started on Chrysler (which is a whole 'nother animal), that PT Cruiser is hot garbage. GM should make the trucks and SUV's because that is what you are actually pretty good at. I don't care if you just stop selling cars other than the Corvette and the Cadillac line, or if you private label a Toyota or a Honda, but stop making the current crappy cars. Here's a crazy business model: make products that you are good at making and carve your niche in the market.



This is the only car I refuse to rent. Jesus H. Chrysler, give me a break.



Step 3: Copy Ford
Ford hasn't had nearly the problems that GM has, so figure out why and do it. Not that tough of a concept, car companies have copied each other from the beginning of time. That's why there's only a couple of difference options available after 100 years of mass production.

Finally, do not let the government tell you who to hire or fire or how much to pay your employees. The government is full of lawyers and career politicians, not car-guys or businessmen and they cannot run a government, much less a car business.

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