Quote:
Originally Posted by Clownzilla
Well, this is what Rick would IDEALLY tell share holders tomorrow, although it is unlikely:
1. A specific time frame for building all vehicles with ethanol capability. Face it, the sheer fact of GM announcing this would sink oil prices starting the minute it is announced. If GM implemented a plan like this, I could assure you that the ethanol industry would become more viable and the infrastructure would improve drastically to give the people a true choice of which fuel to buy. GM has the sheer size and market share to pull this off.
2. A no nonsense axing point for all USA GM factories. Sure, it would hurt but it has to be done. Give a date of 2015 (off the top of my head) as the very last day of the existence of a USA GM factory. Implement this by slowly utilizing other factories around the world by building off of global platforms. GM does not need to negotiate with the UAW one bit, just tell them the way it's going to be. GM has the right to close any of their factories at any time. If the build quality lessens because of disgruntled UAW workers, make sure that swift and adequate actions are used to ensure product quality.
Again, this is a pie in the sky chance but it would be the right thing for GM to announce on Tuesday.
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I agree on the first point, Especially given the ethanol requirements that I believe are built into the new Fuel Economy laws. I don't know if flex fuel is proprietary somehow, or the imports just don't buy into the concept but an announcment like that to say all GM cars will be flex fuel would have a major effect on the industry. It's possible that Ford would then jump on that wagon very early as well since they could probably implement a sweeping plan like that very quickly as well, and we'd see a rapid expansion of ethanol infrastructure and accelerated research into non-food ethanol production.
On the second point I disagree. Not only would GM no longer be a domestic automaker in my eyes (thereby immediately eliminating me from their customer base) but given the state of the economy, it would be foolish. As the dollar weakens, production will be moving more and more back into the country, why would you want to be on the wrong side of the exchange rate?