Originally Posted by jwp0077
I read the GM “Restructuring Plan for Long-Term Viability” – it reads more like a PR
brochure than a business plan. Nowhere doe the document state exactly how they plan on making a profit on increasing their market share. The document just assumes that will all occur as if by magic. They spend a lot of ink on atoning for past wrongs and promising to do better with an $18 BILLION dollar loan. Any banker getting a loan request like this would have them evicted from the building.
The problem with the auto companies is not outmoded technology or labor costs – the problem is the credit gravy train has stopped and people with a FICA score of less than 700 cannot get loans to buy cars.
Loaning $34 Billion to the big 3 will not address the root problem.
That is not what I am hearing in our business community...the bigger problem is that folks are not "pulling the trigger" on this "semi-discretionary" spending due to fears about the economy and their jobs.