GM axes performance division

[Michael Beard]

How long does a company have to operate in the red before it realizes they have to 1) charge more for their product 2) pay their management/employees less 3) sell more product (and not at a loss), and/or 4) operate more efficiently? How can they charge more or sell more product? Make a better product than the competitors.

While everyone in the auto industry is hurting, Ford has it's head above water so far. I didn't buy the cry about how many millions of jobs would be lost if the Big 3 (oh, wait, really just 2 of 3 anyway) went under, due to parts manufacturers, etc.... If there's a market for "x" number of cars to be on the road, regardless of the manufacturer, then there's a market for parts, repair places, etc. It was the same "Save us now or else!" scare tactics that they used to push through the BS bailouts last summer, the auto industry bailouts in Dec., and more recently the so-called Stimulus socialism bill. As soon as they started socializing losses and propping up businesses that should have failed, the markets were thrown into turmoil, and the "too big to fail" businesses realized that they didn't have to act responsibly, because big brother would bail them out.... hm... just as mortgage-holders are doing now... some of whom are being told, "We can't help you right now, but if you default on your payments for 3+ months, then we'll save you."

If your business was not financially viable then, isn't now, or doesn't look to be in the future, why should we prolong the agony? Let the business fail as it should. Does that mean there would cease to be automakers in the U.S.? No! Somebody with some business sense would pick up the pieces and start a new auto company. If there's a market for a product, people will make that product.

We grew up with very little, but very happy with what little we had, and we got into drag racing on a shoestring budget. "Seven bucks worth of sawblades is cheaper than making horsepower, son." I've continued to play things close to the vest, maintained a great credit score, beenas financially responsible as I can and in just the last year or two, I've gotten out of debt and turned my business into a successful business. I'm finally realizing my dream, and NOW people who have made 2x, 3x or more as much money as me who have squandered their means want ME to pay for their indiscretions?! I don't think so, comrade.

We are rewarding bad behavior.

Rick Santelli nails it.

Watch Glenn Beck, 5pm weekdays on Fox. You are not alone.

/rant

[Michael Lyons]

Its not ALL the car companys fault. The $4 a gallon gas kinda exposed a flaw in the plan. It eliminated the middle class so that now theres basically the poor and the not poor(can't really say rich about alot of em). When the gas went up so did everything else, steel, food, energy costs, everything. And now that gas has gone back down nothing else has, in fact I went to the grocery store lastnight and my gatorade went from 1.08 to 1.16 since last week. Whats that almost an 8% increase? My cable bill just went up like 16%. Yet I will most likely be getting another paycut after not having any raises for 2 years already(to go along with the elimination of OT last june). The gas prices is what caused this rapid downward spiral the last 2 years. I don't know why no one will admit it! Nobody can see that? Anyways, go on and bash the big three but its really ALL car companies that are hurting right now. If the cost of cows doubled in 3 months not many people would be goin to The Outback anymore either!! To me you need to thank the oil men who were in office who did nothing to slow down their oil speculating buddies when they stuck it to the american people and ultimately the world.

[buzzinhalfdozen]

Micheal, I agree that the oil companies basically raped the american people, however I doubt this was the catalyst to all that has happened in the last few years. IMO it's all about greed and being fiscally irresponsable by the supposedly best and brightest business minds we have. Well hell I am willing to run any company in the ground for half of what they're paying these college wiz kids.Yopu know I've made my living in the auto industry for over 25 years now, I've seen several "down turns" over the years and yes things always seem to get better, I just think we need to lay the blame on the right people and hold them accountable for their actions. This applies to the auto industry, the real estate and banking and so on, if I do a bad job at work I'm certainly not going to expect to be rewarded for it. Joe