GM Another American Icon to Fall

You are Making it happen, Watching it Happen; or It is Happening to You!

Americans are definitely watching it happen and it is happening to us. GM is the latest headline as it is certain to declare bankruptcy or do a pre packaged out of court deal. Either way if you watch the happenings bond holders and unions are inflexible waiting for a “better deal” and betting on the government bailout. I believe hope is not a strategy.

One after another American icon companies are falling. There will be more. Our consumption economy has stalled and is failing to support businesses across every industry. GM is a high profile case as was Merrill Lynch, AIG, and Lehman Brothers etc.. In this case and as I said Unions are a big part of the problem. Instead of everyone pooling interests and rapidly executing a plan the opposite is happening. The groups with a strangle hold on the business are just dug in and hoping that government will throw money down a black hole so they can continue to reap the rewards of a failed business and industry.

This company and the industry is hamstrung and on a global basis a dinosaur. Even if all works out for GM no one is buying cars so the whole pipeline, from manufacturing down to the auto dealers, is filled to capacity. The government is trying new tricks to incentivize consumers to purchase cars but people don’t have a clue what all that means. People out there only know that they are hoarding money and making do with what they have. How then can GM or Ford survive when the outlook for product sales is so grim?

I have said for a year that debundling the brands that have been acquired over time is necessary. In GM’s case someone is finally listening to reason. Spinning off brands is one of the major keys in saving our industry. Some brands need to be retired. So this is a good sign. Unions are a thing of the past for certain and part of the cancer that is wrought throughout many industries. Can you imagine unions, knowing the industry and companies are in constant states of failure, continue to strike and fight for more and more money when they are the highest paid worker in the world by far. Labor in the industries like auto, airline, transportation etc.. cripple businesses’ ability to compete.

I think everyone understands the impact of our failing auto industry and the government isn’t looking into the future at the Super Bowl. Instead they are just looking for the next touchdown to win a short term game that makes everyone look like winners. This is not a winning strategy at all and without significant and radical overhaul of our economic way of like I assure you our country is in sever trouble not just our companies and industries.

I know I have bad news after bad news but that is the way it is. The sugar coating we get is to boost confidence in our economy that is necessary to make sure buy stuff. Auto or any other industry selling stuff isn’t going to make it in its current form. Toss in the government and our cancerous National Debt too. I am just waking up everyday sick to my stomach that I want to make it happen, but 99%+ of us are resigned to watching it happen and it is most definitely happening to us.