Japan business leaders hoping for GM revival after bankruptcy

Tuesday 02nd June, 07:00 AM JST

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bonym at 04:41 PM JST - 2nd June

Lots of misguided opinions, as usual, here.

GM has always made cars that people wanted. That is how they stayed at number one for so many years. All this hoopla about smaller cars is just nonsense. Toyota has done very nicely in the US and Japanese markets with their Xtrail series. Those cars are no bigger or smaller than any US made auto. So stop the sillyness over car size. This is solely about unfair businewss practices perpetrated by the Japanese and most recently the Koreans. Both of those markets are virtually closed to outside auto makers. The fact is that once the Japanese saturated their market they then went after the US. Now the whole industtry is in turmoil, for everyone. The lesson to be learned here is that 100% open markets will be taken advantage of... they need some kind of controls ! Now looking at the big picture I like what I see with GM. A full product line of electrics just ready to roll off the conveyers once the change over has been completed. Those of you that have been wondering what GM has been doing since 9/11, well you are about to find out. The economic conditions are ripe for change, god help those countries that screwed the US and Americans the first time around. Interesting enough, I now own 60% stake in GM... you think I'll be looking at a Toyota anytime soon ? No chance !
berri_fusion at 07:31 PM JST - 2nd June

If you think about it, the auto industry in America is responsible for much of the countries debt.If not directly, via association and causality.
Hopfly at 09:16 PM JST - 2nd June

zurcronium: There is plenty of blame to go around. My reference is the 1990's when unions demanded full salary for laid off workers. GM became fat and unsustainable. Shortsighted decisions were made by many, yes management also.
teleprompter at 09:23 PM JST - 2nd June

It's the Chicago way.

Obama is paying off the UAW and also forcing Ford to play against a gov't - backed company.

If you are American and actually think this works -

Buy GM.

Buy Citgo gas.

Don't stop till Caracas.
TheQuestion at 09:58 PM JST - 2nd June

GM has always made cars that people wanted. That is how they stayed at number one for so many years. All this hoopla about smaller cars is just nonsense.

Qute true, where I live its simply impossible to own a year round lightweight vehical. While I don't own a GM my current vehical is a full-sized car and during the snowy months I still have to load up the trunk with cinderblocks to get traction. I'd love to see a Prius take a hard left in 6 inchs of fresh powder.
usaexpat at 11:06 PM JST - 2nd June

Molenir: Good one, I used to call them Generic Motors but Government Motors is more appropriate now. I keep bringing up British Leyland as a poster child for why nationalization doesn't work. This will be no walk in the park as Henderson and Obama have tried to play it off. GM is such a huge beast that bankruptcy is going to take a long while. Throw in lawsuits from dealers who are getting cut loose and you've got a huge mess.
Howardtheduck at 11:10 PM JST - 2nd June

If I were a Japanese car exec., I would view the GM & Chrysler bankruptcies as the canaries in the coal mine (the coal mine being American's appetite for cars). Does anyone think Americans are going to return to their free-spending ways after this downturn is over? With Chrysler & GM shedding legacy costs, slimming down, they can possibly become nimble enough to navigate the new reality that is the American car market. Japanese companies were certainly nimble back in the '70's and '80's, but, like many things about Japan after the Lost Decade, sclerosis has set in, and it remains to be seen if they can adapt to the new reality.
usaexpat at 11:16 PM JST - 2nd June

Tahoochi: Ford is staying afloat because they have much less debt, stronger sales, were further along the reorganization path and best of all sold Land Rover and Jaguar to Tata at the height of the market (hence the better cash position). I told everyone to buy Ford Stock when it was in the $1-$2 range and people thought I was nuts. Currently trading at $6.19 a share. Ford will survive and if you've seen their new product they deserve to. GM on the other hand let's wait and see if you can create a silk purse from a sow's ear.
Kwaabish at 01:52 AM JST - 3rd June

Yeah, I can see it now. Ford F150's and F250's rumbling around the Japanese and Korean countryside and cities with "open markets"...

I guess they closed the markets by having narrow roadways? How many "Kei" trucks did Ford try to sell in Korea and Japan?

While we're at it, shall we attack the African market also or is it a figment of imagination that I saw mostly Rovers and Toyotas as opposed to Trail Blazers and F150's running around...
Molenir at 02:05 AM JST - 3rd June

This is about too much competition and not enough customers... learn the lesson well or you are doomed to repeat it.

Truly a sad day for economics when you hear stuff like this. Sad day for America, and for the world as well. Protectionism is not the way to go. Open markets in Japan and the rest of Asia would be ideal.
bonym at 06:24 AM JST - 3rd June

Typical stereotyping responses we see oh so many times here.

"Yeah, I can see it now. Ford F150's and F250's rumbling around the Japanese and Korean countryside and cities with "open markets"

Yes I could ! In fact right now I have two Japanese co-workers forced to go through net auctions in their attempts to land the "Chevy Trailblazer" ! Guess they wanna be like Jack in 24 or something, who am I to criticize their dreams... too bad they have to go through such a hassle though just to get what they want. And this sillyness...

"I guess they closed the markets by having narrow roadways?"

Actually I thought the worlds most windy road, and one of the narrowest, was in... San Fransisco ! Amazing that any American made car is able to get down that thing. You people continue to spout misinformation at your own expense.

Japanese markets are simply not open to foreign auto makers... they all have said as much, and your own eyes, just take a look around today, should be enough to force you to admit it. In the US the roads are packed with cars of every make and model... like the country itself a true blend of nationalities. Japan ? Korea ? Ha ! But make no mistake... their strategy has worked ! Sorry Molenir you are wrong. Just look at nations that protect their markets at the expense of the US... they've all done pretty well. Time for managed trade people !
Kwaabish at 07:05 AM JST - 3rd June

Actually I thought the worlds most windy road, and one of the narrowest, was in... San Fransisco ! Amazing that any American made car is able to get down that thing. You people continue to spout misinformation at your own expense.

So now the norm of American roadways is the same as Lombard Street, a tourist spot in San Francisco? The majority of the road specs are the same as Lombard? Plus, I think most would still agree that roads in general are more narrow in Japan then the US.

Also, it still doesn't change that fact that it would be mighty inconvenient for a F-150 to drive down (and park it in) a residential neighborhood in Tokyo, Yokohama or Osaka.

Much easier for farmer Taro to drive his Daihatsu HiJet to the field compared to a F-250, doncha think?
dontpanic at 05:37 PM JST - 3rd June

It amazes me, the US has been the biggest proponent of globalisation and over the years the biggest profiter. Now, in the new reality when your businesses have been tested and found wanting, you throw your arms in the air and say it isnt fair.

The US is a mature market, the only way to gain share is to produce a product or service that adds value by being better in some way, or cheaper, or both. US car makers enjoyed good times domestically based on aged technology, a lack of investment and cheap and easy finance available to anyone regardless of ability to pay. Unfortunately the global financial meltdown, caused in large part by those poor lending practices, has changed the face of the motor business. In todays market the current GM domestic product has been proven unsuitable.

Protectionism at this time would tip GM over the edge. US makers cant respond with a domestic solution, look at Ford. GM should bite the bullet and accept that maybe it doesnt always get it right. The days of cheap energy and cheap money (cheap anything for that matter) have gone. When thats accepted whats left of GM in the US, having sold the family jewels, will hopefully start to make cars that exist in reality. If it can make those cars of a suitable quality they will sell in numbers and compete with the Japanese/Koreans/Europeans/Chinese/Indians abroad.
Good_Jorb at 11:13 PM JST - 8th June

Bout time the US instituted a "buy American" clause in the nation. Well done Barrack Hussein Obama !

Good luck with that, the primary reason that Canada is the US's #1 trade partner is becuase Canada is the US's #1 supplier of Oil. Buy America would violate NAFTA, which in turn would mean that Canada would no longer be forced to sell Oil to America at below market value.
moomoo at 12:57 PM JST - 9th June

"the primary reason that Canada is the US's #1 trade partner is becuase Canada is the US's #1 supplier of Oil."

Ah yes, Americas good friend to the north, Canada. Lemme see, don't the Americans have an 80 billion dollar trade defecit with them ? And oil ? Wasn't the dramatic increase in oil prices the main trigger for the global economic crisis ? Gee thanks Canada, with friends like you...

As you can see good jorb, "Bout time the US instituted a "buy American" clause in the nation. Well done Barrack Hussein Obama !"