I think the main problem is a fundamentally wrong model policy (of all 3 US producers). The only reason the exorbitant salaries of people in higher management positions are justified is for their anticipation of change in demand and preference-structure of future buyers, let's say, in 4-6 years.
But as every US producer is tremendously struggling this is a clear indication that they based their decisions more on short-term money-making (hey, everyone's buying SUVs, let's build more SUVs) and to a certain amount on ideology (US - land of the over-motorised cars).
I'm not saying I'll find THE best solution for GM's problem. But the effect of the credit crisis like lower demand caused by an expected recession, problems acquiring decent consumer-credits (see GMAC) AND a sinking oil-price are not well understood yet. What if you shut down all the light-truck plants and the oil-price comes down to 50$/barrel and STAYS there for a couple of years? If the economy bounces back quickly (the US-economy surprised me positively many times regarding this) you will be in a situation where demand for SUVs goes up like hell and you can't produce because you need time to build up the capacity now being destroyed.
But as every US producer is tremendously struggling this is a clear indication that they based their decisions more on short-term money-making (hey, everyone's buying SUVs, let's build more SUVs) and to a certain amount on ideology (US - land of the over-motorised cars).
I'm not saying I'll find THE best solution for GM's problem. But the effect of the credit crisis like lower demand caused by an expected recession, problems acquiring decent consumer-credits (see GMAC) AND a sinking oil-price are not well understood yet. What if you shut down all the light-truck plants and the oil-price comes down to 50$/barrel and STAYS there for a couple of years? If the economy bounces back quickly (the US-economy surprised me positively many times regarding this) you will be in a situation where demand for SUVs goes up like hell and you can't produce because you need time to build up the capacity now being destroyed.