Quote:
Originally Posted by G-Benz
I read the analysis. What it doesn't state is that Chrysler decided to turn itself around immediately by introducing products that actually would meet buyer's needs! Their (then) product offerings fell far short of the other makers, especially in light of the "rising sun" gaining ground.
I remember Lee Iacocca's commercials touting the new "K" cars. They are laughable by today's standards, but back then, it was exactly what the market needed, and helped to turn the company around rapidly.
Will the car makers today introduce products to turn their situation around after a bailout? Or will they continue to churn out "big American iron"?
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Yes, that is the question.. Will they make good business decisions (smart products that customers will buy) If they do, like Chrysler did with the K, they will survive. If not, been nice knowin' ya!
I think that the govt., as conditions for loans should mandate that all stock bonus arrangements be suspended and standards for compensation be reviewed and adjusted. Don't ask me how. But these execs can't go on getting hundreds of millions in return for running these companies into the ground. The taxpayer/stockholders demand better management.
You know, Detroit has been making cars for 100 years. They DO know how to make cars:
http://articles.moneycentral.msn.com/Investing/Extra/the-65-mpg-car-ford-won't-sell-in-us.aspx
my $.02.