The economy drives changes in all of our lives and especially to the industrial landscape as we know it. The ones that survive?? THE BANKS. Accusations of bad decisions, poor marketing, poor quality can be used across the automotive industry, but in today's day of liberal enablers, who could be to blame?? That's right again...THE BANKS. In all honesty, I can't put all banks into the same bag, however, the large financing institutions that helped all of the car comanies have as much blame for the current situation as the reviled leaders the press & public now labels the auto execs.
Why? Well, just sit in their seat...loan, loan, loan basing worst case scenario on liquidation analytics...yes, liquidation to in reality, get their money out. For example, they never pushed GM to not allow the legacy costs (social engineering at its best) from getting to the extremes they are bringing GM to its knees in today's economy. Chrysler for another example actually still pays for legal services under its CAW contract!! How many of us 'normal' folk get legal services in our benefits!?! Believe it, it's true...just read from last weekend. Now the banks are getting bailed out of everything soon to reach the TRILLIONS of dollars and the car companies are begging for what now seems a paltry few billion dollars to save hundreds of thousands of jobs. Are the car companies great? Absolutely not...I don't think they have gone far enough in the salaried cut backs yet.
The MSNBC article listed above does a nice job in trying to understand why the Big 3 have such a hangover effect with customers...there are many junkers out there that no one should be buying. AND, Toyota only gets away with what they do because of the 'aura' around them. They are losing as much if not more money than everyone right now...they just don't have the legacy costs to deal with...smart as they didn't replace the governments social responsibility!
Well, this maybe just Ch 1 in some of my comments...right now I'm reading Jamie Dimon's Annual Report Chaiman's Letter and I may have more comments later.
Have a great week!
No comments:
Post a Comment