I hope GM recovers just as much as everyone else. My Dad and Grandfather both worked for Chevy. I work for Ford now because, well Ford was hiring at the time, GM was not.
It's nice to see the investments in US plants. I agree, like when positive things were happening with Ford (until recently) the press/media does not really report the positive things about GM. You know how it goes.
Not bashing GM but rather reminding of a couple concerns I have that cause me to be reserved with my optimism about GM:
1. When Mulally became head of Ford the media said "What does a jet guy know about building cars?" Well, Mulally knew manufacturing, which is manufacturing no matter what you are building. However, the last head and current head of GM are from the Telecommunications sector, as are some members placed on The Board. That is a service industry, not manufacturing. Having read about how the board questioned Engineers about why so much had to be spent on new engine development, and why the company couldn't just have someone else make the engines for them really has me concerned that these guys do not understand manufacturing or the auto industry. I am waiting and seeing.
2. GM paid back a loan with money from another loan and claimed victory. That is scary.
3. GM went through bankruptcy and quick leadership change on a large scale. Mostly service industry people are in charge. They still owe tens of billions in loan repayment. Most of their new product has to be developed from scratch whereas Ford has European designs that are being brought to the US. With all this, GM stock IPO's at double Ford stock at the time. I feel that is a sham for people who have money to make money. The regular guy was basically squeezed out on getting IPO stock at a price more reflective of GM's actual situation. I understand getting as much for the stock as possible and the benefit of it, but in the way stocks really work, was it worth $33?
I hope GM recovers fully (being Federally income tax free until they have earned $45 billion really helps) because of what it means for competition in the industry, jobs, and tax revenue (employees) for the communities they do business in. However, I am afraid that all of the "rosiness" about them is a front. I really hope I am wrong, but I just get a bad feeling about this. I think we will know in a couple years if this is for real, and I hope it is. I do not have a lot of confidence in Dan Akerson after reading about his history.
Steve
