I'm no economist-matter of fact, I probably didn't take more than three credits worth of business classes in college. And though it would have been painful, I wish that wasn't the case. Maybe then I could make sense of all the technical jargon being thrown around these days to disguise all of the ugly words like bankruptcy and loss of ownership. With my limited capacities, I have managed to come to two conclusions: the golden days of limitless spending is long gone, and restructuring is inevitable.
Hopefully American companies (like the Big Three) will have to emulate the Asian business model, trim the fat from the top and middle, and work towards achieving the peak of efficiency. This seems simple on the surface, but many will argue taking away some of the reward for advancement is un-American. Then again I suppose that all depends on your definition of American, and the "American dream." Silly backwoods Scott, I was under the impression that the American dream was working hard, putting in your time, paying your taxes, and eventually getting promoted by merit. I didn't know the American dream actually involved telemarketing, winning the lottery, or some sort of pyramid scheme. It seems like everyone in this country is desperate to get rich quick; it's no wonder why the courts are flooded with frivolous liability cases.
Perhaps if everyone weren't in such a hurry, many bad decisions would have been avoided in the first place. In the case of GM, I doubt the Pontiac Aztec would have gotten good marks from a focus group. It seems for a while the company felt it could do no wrong. However, a little healthy paranoia would have helped in keeping the Japanese from stealing such a large chunk of the American market. By 2002 the apparent reality seems to have taken effect, and while I think we can all applaud GM's rebound, it came too late. At this point we can only hope that despite having a large stake in the company, the U.S. government won't interfere too much in the daily operation of the "New GM."
The New GM's business plan, as you'll read elsewhere in this issue, includes considerably fewer dealers. The closure of 10 plants has also been announced including those in Michigan, Ohio, Indiana, Delaware, and Virginia with several others on standby. Additionally, parts distribution warehouses in Boston, Jacksonville, and Columbus will also be closing. Without a major new car manufacturer springing out of the ground overnight, I don't see these jobs being replaced any time soon-so unfortunately the working man gets the shaft. On the bright side, the consumer should not be too affected by GM's troubles. Warranty, service and customer support is supposed to continue uninterrupted as backed by the U.S. and Canadian governments. Production will continue, and the majority of dealerships will remain open and full of new cars to sell. As is no doubt the influence of its new partner, GM has also committed to building a new "future small car" at one of its standby facilities in the U.S. that will be committed to boosting fuel economy. I'm hoping this new econo-box will be less of an eye soar than the Aveo, or other such attempts, and bring in some revenue. Perhaps the General can take a lesson from European variants, and maybe even throw in a turbo diesel-it works for Opel.
Whatever the future holds for GM, or Ford and Chrysler for that matter, it is closely tied into what you, the consumer and the American working-man or -woman, do. I used to believe that as a consumer you have an obligation to buy the best product you can, albeit foreign or domestic, as that will force the competing companies to build a better product, but now I am beginning to wonder whether those companies will last long enough to do so. Natural selection may weed out the "unfit" and the weak, but it also throws family members and friends under the bus. I don't preach "Buy American," but I do advocate buying responsibly. Know the consequences of your actions.