General Motors, in Today's News 08.07.09

General Motors. General Motors has four cars in the top ten that are being traded-in under the 'cash for clunkers' program. It has one in the top ten being sold, and that one is number ten; that is, dead last. In other words, the public is dumping their GM cars and not replacing them with another GM car.

This data is what the central planners neglected to take into consideration in their drive to make GM profitable. The government board that is transforming General Motors figured that if they broke up GM, put in a new board, hired a no-nonsense board chairman, and instituted an 'accountability' system, then all would be well. GM would be making money in no time.

The only problem is the products produced by GM are, with a couple of exceptions, not desired by the public. The central planners can make all the managerial changes they want, but it still won't change this reality. 

The only way for GM to turn around is to bring out some autos that inspire the public. This unavoidable fact is exactly the same problem that the old GM faced. Solving the quality/inspiration problem will require years of work. New model cars just don't pop off the assembly line.

And so the bureaucrats great plans are heading toward achieving very little. They will try to get around their dilemma with advertising and public relations in an effort to change the opinions of the public about the GM products.

It won't work. The old GM tried to convince the public to buy their products in many, many different ways over the years. But the public was and is too smart for these smug bureaucrats. They have and will see through all the razzle-dazzle.