4/12/2005

GM's lack for understanding of their own demand

GM stated that it had a negative cash flow this last year in the North American producers. When trying to deliberate the issue with the UAW, both came to the conclusion to go to the government to solve the problem. Some suggestions to solve the problem have been addressed by the excess inventory that GM produced just in the last three years. GM produced 350,000 more cars then they sold. Gm’s ability to figure their demand for their products has cost them money. Excess inventory is pricey. Do you think that it is necessary for GM to go to the government to fix internal financial difficulties? How do you think this push for standardized healthcare will affect the economy? Do you think that GM's problems are healthcare related at all? I really think that American companies need to do a better job at accessing their forecast of demand and find ways to be more competitive in the market; otherwise we need to let other countries produce cars and America needs to focus on what we produce best.

2 comments:

'Thought & Humor' said...

Thought I would stop in to say, "Hi"!!!

Howdy
'Thought & Humor'
http://ilovehowdy.blogspot.com/

Dr. Tufte said...

-2 on Marie's post for multiple spelling and grammatical errors.

I thik it takes an extraordinary sense of entitlement for two sides involved in a positive-sum game to volunteer the government and its taxpayers to help them increase the size of their payouts. Clearly, there is an issue here that this appears to be a negative-sum game in the short-run, but that merely indicates short-sightedness on the part of the involved parties.