Restructuring GM

[zete]

At the present time GM needs to think about seriously redoing its general structure. It will have to address this either with a US loan or bankruptcy or anything similar. And after reading that Saab is profitable I had an idea: Perhaps GM should become a company of companies in North America.

What I mean is, if Saab is profitable in North America what other divisions are profitable? Chevrolet? Cadillac? Maybe the solution is quite simple: split GM's constituent divisions into actual corporations wholly owned by GM. This is the reverse of what GM did 100 years ago.

Would this even be possible?

And if possible, could GM itself be bankrupted leaving each of these spun our companies whole and stable? You have to think the parts are worth more than the whole.

[wildgoosechase]

I believe Coke and Pepsi are structured with their bottling companies as separate entities. GM could do something similar and split off NA operations. Let the NA operations go into bankruptcy then import Chevrolets from Korea. The UAW will only produce trucks since they are protected under the "chicken tax."

[Bravada]

Splitting manufacturing facilities would be much easier than brands, which are now rather hard to assign assets to. But a manufacturing facility can even be made bankrupt without affecting the enitrety of GM. I'd contract out manufacturing and assembly to individual sites and make them offer competitive prices and all. And screw UAW

[IMPALAon20s]

Originally Posted by Bravada

Splitting manufacturing facilities would be much easier than brands, which are now rather hard to assign assets to. But a manufacturing facility can even be made bankrupt without affecting the enitrety of GM. I'd contract out manufacturing and assembly to individual sites and make them offer competitive prices and all. And screw UAW

thats the problem right there. UAW they've had a smooth ride for so long all these years, and they find it difficult to accept anything less. and from what i've seen they've always fought tooth/nail to maintain that level of compensation. whats sad, is they are ones that have most to loose from GM's downfall, you'd think it would encourage them to adjust salary and benifits to what competitors offer. o well. we can always go buy other cars, if GM goes down.. but they'll be looking for work.

[tony209]

I'd like to have a short comment here.

GM should considers that's some bail out money from the government should go to GM loyal employees or buyers.
Why? Some of the 8 billions will be generated a lot of profits and company revenue for GM if GM drivers have money to buy GM's vehiles.
GM or the three companies will not be able to produce much effort if their drivers don't have any money especially during the economic crisis.

[PAULSTS1]

Originally Posted by tony209

I'd like to have a short comment here.

GM should considers that's some bail out money from the government should go to GM loyal employees or buyers.
Why? Some of the 8 billions will be generated a lot of profits and company revenue for GM if GM drivers have money to buy GM's vehiles.
GM or the three companies will not be able to produce much effort if their drivers don't have any money especially during the economic crisis.

Comrade Tony209:

You have as much chance of that happening as you're winning Miss Universe!

[FenwickHockey65]

Originally Posted by tony209

I'd like to have a short comment here.

GM should considers that's some bail out money from the government should go to GM loyal employees or buyers.
Why? Some of the 8 billions will be generated a lot of profits and company revenue for GM if GM drivers have money to buy GM's vehiles.
GM or the three companies will not be able to produce much effort if their drivers don't have any money especially during the economic crisis.

As awesome as that would be (And that would be FREAKING AWESOME, I'd definitely go out and buy a LaCrosse the minute it hit dealer lots), it would never be done.

[tony209]

I know it wouldn't happen. But if it will, that will be good for GM's loyals and GM itself. GM couldn't make much profit if it's retructuring wouldn't be with its customers.
I know for sure that from where I live. GM drivers have turn away GM's vehicles recently because the price and the repair costs. Also, that bail out money would not enough for GM or the three companies survive a very long time.

Tony