General Motors just announced that they lost 2.5 billion dollars in the last quarter. Yet, the pictures included in the report showed them still putting together the big cars that nobody wants anymore. I don't get it and need help from some auto expert to explain it to me.
Can somebody out there please enlighten me about my questions about the auto industry? Why are GM, Ford and Chrysler still building the ridiculous fleet of cars that nobody wants? Wouldn't it be more prudent to just shut down production and do a mass retooling of the industry immediately? My questioning is based on the reports released this morning that GM lost 2.5 billion this last quarter. It appears that they would save money by stopping production and putting the last cash they have on hand into an overhaul so they can produce vehicles that would actually sell.
I stopped a woman who was driving a "Smart Car", a beautiful two-seater with a surprisingly amount of room and comfort and quizzed her. She claims to get nearly 45 miles per gallon. She also said there is a two year waiting list for these autos. I do not understand the process other than I know retooling is a massive job. But building cars that few want is just folly while a need is out there for smaller cars that would sell, sell , sell. What am I missing?
I know that if any of these big three auto giants go down it will cost between two and three million jobs nationwide. Our country would not be able to recover from this for many, many years. This would have negative ripples and make health care, education and environment concerns nearly impossible to change in the near term.
I say retool now! Get the electric cars out there, get the Smart Cars on the road. Last, anyone who buys a new Hummer or Ford Explorer type rig must by law have a gigantic middle finger painted on the driver's side so we all know who we are dealing with. Seriously help me understand why retooling can't start immediately.