General Motors Formally Quits the Automaking Business

It is true. GM no longer cares to compete with other automakers. Instead of investing in research and development to make better cars, GM has elected to continue to bribe people to buy GM cars, cars that they would not otherwise buy. It is a sad confession for the erstwhile automotive giant to make, but apparently, the company could no longer deny what has been painfully obvious to the public at large: GM cars suck ass. What other message can the offer of free gasoline for a year convey?

GM cars are not fuel efficient, they lag in reliability and features, and the are built upon decades old chassis, engines and technologies. Offering outright cash to customers had run its course and dangerously thinned GM’s profit margins. These cash bonuses were a gamble aimed at reversing the loss of market share that GM has been experiencing, and they failed: GM lost and continues to lose market share.1

There must be a million GM shareholders who must be lamenting the fact that the company into which they had placed their money (and faith) had elected to continue a program of ineffective bribery instead of building more marketable automobiles.

The management of GM were once captains of industry. Now, they are not even greenhorns of accounting. Good night, and good luck.

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  1. A superb article from carofthecentury.com

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