Why GM could have succeeded if it really wanted to, and why it should fail.

There are past successes at GM.  The relative success of GM’s Europe and Asian subsidiaries shows that.  One such article from three years ago shows that GM, given the correct direction, can indeed make small efficient vehicles that people want to buy.
http://www.iht.com/articles/2005/08/08/business/van.php
Unfortunately, it chose to continue researching, developing, producing, and selling behemoth guzzlers that no […]

The “twenty-year rule”.

It looks like i’m not the only guy to have figured out that the world works in cycles.  Just look at the fashion industry—bell-bottoms have come and gone……….and come again.  I’ve seen acid-wash jeans twice now.  What’s next?–shoulder pads for womens’ jackets again?
Patrick Bedard is one of the old-hands at Car&Driver.  This is one smart […]

Wave-theory. How cycles manifest in real life—such as traffic jams

 
Approximately five years ago, i read an article of how one researcher was applying wave theory to traffic jams.  The simple premise being that traffic jams could be define with a formula describing a wave.  This is a micro-example of my premise being that long-term economic forces shape human behaviours and thoughts over a period […]

Whither future war-time production if the Big Three are sold off? To the Chinese? To the Saudis?

Students of history will recall that after Japan attacked Pearl Harbour, the US industrial machine mobilized from its depression-induced coma, and pulled out all stops in the production of all sorts of military machinery and equipment.   During the Remembrance Day holiday two weeks ago, I watched a TV special that stated the auto-production apparatus of […]

More on Size vs. Profitability. How GM may be BIG but profit-less.

http://www.thetruthaboutcars.com/gm-is-a-joke/
Fantastic.  Even small companies are taking potshots at GM’s profitability.  Avon’s market capitalization is greater than GM’s now.  Even Amway, if it were a public company, given corporate profits of $1B and a 8x P:E ratio, would also be worth more than GM. 
GM is on the ropes, and it’s rapidly falling market value as a […]

Will a GM bailout involve Chinese dollars?

GM has now become a near-penny stock.  GM’s business model is broken, and it could be argued that the unions were overly successful in sucking all the blood out of its employer, GM.  The secret to every good parasite is that you’re not supposed to kill your very kind host!!!  Not much point being Tommy […]

Kevin O’Leary’s take on transportation.

Like him, love him, or hate him, you have to commend Kevin O’Leary for being brave enough to have an opinion, ANY opinion.  I tend to agree with his views on most items.  I even like his sense of humour. 
http://www.theglobeandmail.com/servlet/story/RTGAM.20070419.wh-mycarporsche-0419/BNStory/specialGlobeAuto
As a car guy, I also admire him for being the few left in North America […]

The bankruptcy of GM discussed, three years ago in BusinessWeek.

The internet is amazing.  Look at what we found online today!  An article from the December 12, 2005 issue of BusinessWeek magazine.  It discusses the at-the-time unbelievable scenario of a Chapter 11 filing from GM (GM).  Well, here we are in late 2008 and that day has come.  The article is timely for a re-run.
http://www.businessweek.com/magazine/content/05_50/b3963114.htm

GM and Ford selling off assets to raise cash. Good cash to throw after a bad core business.

http://edition.cnn.com/2008/BUSINESS/11/18/mazda.ford.sale/index.html?eref=edition_business
So Ford has sold off its ownership of Jaguar earlier this year, after owning it since 1987.  What a money pit–think of all the tens of Billions of dollars lost on that venture, the past two decades.  Ford’s investments in Mazda and Volvo have been more successful, but with its cash reserves quickly dwindling, Ford […]

Size vs. Profitability

The size of a company, as measured by its gross sales, gives it breathing room, for cash flow, cap-ex (capital expenditures),  marketing, bonuses, and profits.  Profits must arise from the sales of product and the revenue it generates.  Profits, can’t be greater than one’s revenues, obviously. 
 Amway, being a $7B company (gross sales).  Doling out approx. […]