Tuesday, June 3, 2008

What do GM and married men have in common?

They've both given up on Hummers.

GM is again a little late to the dance, even though it's the right decision. The Hummer was the auto industry's version of the Macarena. Good riddance.

GM to Close Four Truck Plants, Shift Output to Cars

"...may drop its Hummer brand of large sport-utility vehicles. "

GM has consistently made bad choices, ill timed investments and shown a complete lack of vision in the marketplace. They appear to be trying to make some good choices now, but they are way too late to get the penetration they will need. The US auto industry is in a precarious position. They will need to go to the bond market well to survive and when they get the price tag, they won't be happy campers. Neither will the poor schmucks who own their stock. Look for GM's dividend to be non-exisitent within the year.

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