Monday, August 9, 2010

DETROIT’S BIG THREE FACE OBSTACLES IN RESTRUCTURING

What can be said about the current situation of the company? At least one thing is evident, the situation could have been much better. Unfortunately, today the company is obligated to pay off health-care benefit packages and pensions that were negotiated by the United Auto Workers and the Big Three before.
However, everybody makes mistakes. We all have become witnesses of a recent misfortune of the Japanese Automobile Company – Toyota. But I’m pretty sure that all the money they are investing in “forgive us” advertising and traveling around the world campaigns will be paid back later on. Why can’t the Big Three do the same? Yes, they still have extra costs for health-care and pensions, which make them look less competitive abroad. But it can’t be changed. So, they should try to make some efforts and try to remind people about their past success and present quality. They should also invest into some vehicle features. Just make people believe!
There is a saying: “Those who don’t risk don’t drink champagne!” Hopefully, they will learn from their silly mistake.

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