If GM and Chrysler were healthy, they wouldn't have anything to deny, would they? But they do. And so they have. In so doing, GM CEO Rick Wagoner provided the perfect non sequitur. According to Bloomberg, "GM has no thoughts whatsoever'' of bankruptcy. Hang on; if you're not thinking about it how can you answer the question? And anyway, if Wagoner isn't thinking about bankruptcy, should he be? You know; the threat of bankruptcy? Or is this one of those quintessential GM fingers-in-the-ears "la-la-la-la-la" moments? Along the same lines, Wagoner declared "We don't have any plans to eliminate more brands." That's reassuring? Shouldn't GM have plans to eliminate brands? Especially if GM "has a lot of money for a company of its size" (i.e. one who's market cap is less than Mattel). Meanwhile, Automotive News [sub] has intercepted a letter from former ToMoCo Prez (and current Chrysler Prez) Jim Press and his best bud Steven Landry (executive vice president of North American sales) to ChryCo dealers. The missive assures store owners that the ailing American automaker isn't going Tango Uniform. "Speculation has surfaced recently in media coverage of analyst reports suggesting Chrysler might have liquidity issues down the road if the U.S. market does not pick up. Chrysler has communicated to the media that the suggestion of a possible bankruptcy situation is without merit." Without merit? As in untrue? False? Wrong? Parse-ably.
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Well rest assured they don’t plan on doing it soon; but I think rick is sticking his head out for a shareholders lawsuit if he keeps saying that once preparations really are underway. So look for the ominous silence before the storm.
“Are you considering bankruptcy?” is the corporate equivalent of that old chestnut, “So how did your rape trial go?”
What “Red Ink” Rick really meant to say is..”We don’t want to think whatsoever about declaring bankruptcy!”
But it’s coming Rick, it’s coming, and there’s damn little you can do about it.
Meanwhile both Alfred P. Sloane and Billy Durant are a spinning in their graves.
To think this could happen to GM is mindboggling…well mebbe not, considering who’s commanding the ship.
What would Billy Durant do?
Well, his plan would probably be to bail out, start a new, separate corporation, and buy up the remnants of GM at post-bankruptcy prices. So, maybe that’s not the best example…
Bobby, you risk becoming a bit ghoulish over this bankruptcy thing. Interesting to know about etc., but you seem to have become as devoted to the idea as a vampire is to a blood letting.
Maybe time to give it a rest and let things unfold on their own. As it is you seem to be almost gleeful about something that for many thousands of people would be a catastrophic eventuality.
Look to your soul sir. It can’t be healthy spiritually all this death watching. Play with your kids, help Mrs. Farago with the laundry.
I nominate “Tango Uniform” as the most abused catch phrase on TTAC.
You guys did predict C11 for Chrysler by August 4th or something like that, right? Just wondering…
I’m with Bigsby.
Sure, a fair number of people at GM have made piss-poor decisions (here’s looking at you, management) and/or demanded more than is reasonable of any corporation trying to make a buck (and here’s looking at YOU, C-suite and UAW/CAW).
But plenty of others have done nothing but their jobs — and a damn find job of it, too, when we look at the vehicles they’ve developed unencumbered by cost-cutting measures.
In other words, let’s not cheer on the demise of a multinational corporation just because a portion of its members have been derelict or stupid, when we know a large number of them don’t deserve their fate.
And let’s especially not do this when it looks like it’s going to happen, anyway. One thing my mother taught me was not to kick someone while he’s down, even if he’s a bully, or someone I highly dislike. It ain’t classy.
It’s tough to have to blog all day long, I’m sure–seriously. But I’m bothered by the fact that not only does this post devolve from a rigorous parsing of whether or not Wagoner can deny something that he says doesn’t exist, but that his argument is called a “non sequitor.”
It’s a non sequiter, to those who know Latin (if it indeed is). I wouldn’t bother to point that out except that this site seems to take increasing pleasure in “sic”-ing the poor bastards who have way more on their minds than grammar. Sick transit system, Gloria.
brent,
I agree with you about the honest workers at GM just trying to do a good job. I worked at the Tech Center in Warren for a few years and met some good people during my short stay there. One problem that stood out was the fact that most work could of been done with half the employees.
Big Three money put me through school, which I’m thankful for. You have to know when to cut your losses, though.
“non sequitor” Close, no cigar. Try Non sequitur.
You’re right. Those of us who think they know Latin should know it’s not non sequitor _or_ non sequiter but non sequitur…
@ argentla: Well, his plan would probably be to bail out, start a new, separate corporation, and buy up the remnants of GM at post-bankruptcy prices. So, maybe that’s not the best example…
But that would be the best solution in the long run. Start from scratch free from union and retiree contract obligations and buy only the names and brands of certain GM marques. If I were to go about it that way, I’d buy the rights to Chevy and Cadillac, then I’d start over with a maximum of three Chevy models. Afterwards I’ll introduce Cadillac and give it ONE model, one that will finally make the words “Standard of the World” mean something. And that’s pretty much it. Quality and reliability will be paramount.
But then again that’s just a little “What If”. The reality will most likely be a Chinese auto manufacturer buying up the rights but making only a feeble attempt at breaking into the U.S. market. Americans would care less because they are now totally satisfied with buying Hondas, Toyotas and Nissans, pretty much in the same way the British are satisfied with buying Fords, Vauxhalls (British Opel rebadges) and BMWs, long after the British auto industry went tits-up.
I can hear the death bells prepping themselves.
Lucky for us other companies make cars too, even better ones than these two behemouths, so after they are gone the sun will still rise on a Toyota dealership somewhere
Ouch, that hurts, especially with the “sun will still rise” statement. But it’s true.
To those who think this is getting morbid, you’re right.
But let’s keep this in perspective. Do you blame upper management for it, or the messenger?
Robert is a big boy and he can take care of himself. It’s his business to decide what is a healthy level of mental/emotional involvement, and it’s Mrs. Farago’s business to put him to work folding laundry or mowing the lawn, not ours.
Making such suggestions, unless we are close personal friends who have personal and valued insight, seems to me to be somewhat condescending.
“Sick transit system, Gloria.”
That is gorgeous Stephan.
All my best,
Bunter
Recent article quotes Wagoner noting that “customers didn’t want fuel efficient cars 2 years ago”. Not noting that economy and fuel misers still sold well even with the SUV craze. The market for cars never bottomed out and disappeared it was just the growth in SUVs (really minivans and wagons took the hit). If this doesn’t tell you that Wagoner doesn’t know what to do, how to lead a company, or how to see reality – I don’t know what does.