Tag Archives: gm

Business/Economics, International

Toyota on its way down to number 3, Volkswagen up, blame “just in time” house of cards

Toyota has already lost its number 1 ranking, no thanks to the March 11 disasters in Japan.  Now its heading down to number 3.

General Motors is now the number 1 world producer of cars, not just because of what happened in Japan, but because GM’s sales are taking off in China.  Who’s about to become number 2?  Volkswagen.

VW is expected to produce 7 million cars by the end of 2011, right behind GM.

Japan is now rethinking its “just in time” supply system.  The March 11 disasters reveled the inherent flaw in the system, especially without any back up systems in place.  A “just in time” system is a house of cards, just pull one or two, and the whole house comes down.

 

Business/Economics, Fukushima

General Motors continues to get hit by Japan disaster

As a result of the ongoing disaster in Japan, General Motors suspended all nonessential spending and global travel, a GM spokesman announced.

In addition, GM will suspend production in Spain, and cancel two shifts in Germany.

Even a small supplier of products that are fed to a bigger supplier that feeds the automaker’s assembly plants can delay or halt vehicle production.

Think of the “always a bigger fish” example, but in reverse.  If there are no little fish to eat, what can the bigger fish do?

Idaho, Opinion

Red Cross Hummers. Why?

Brand new Red Cross Hummer seen in the Fred Meyer parking lot in Pocatello, Idaho.

General Motors has been donating Hummers to the American Red Cross since 2004, along with a lot of cash ($100,000 in 2004). GM claims the vehicles help with disaster response. I can see the Hummer H1 as practical for this, but the H2 & H3 are among the most impractical  SUVs out there.

Why not deck out one of GMs big four door 4×4 pickups with all kinds of rescue gear, that would be more practical. Are the H2s & H3s meant for rescuing the upper class in style?

This is just another example of the lack of wisdom in our corporate leadership. Oh, but wait, I bet GM got a huge tax write off for doing this. A tax write off for an expensive vehicle that was seeing declining domestic sales (a little more than 9,000 in 2009 compared to almost 56,000 in 2007). Oh, isn’t General Motors the company that got bailed out by U.S. taxpayers (yes, they did pay it back, at least on paper).

Here’s better news; the Hummers aren’t even made anymore. The Chinese government rejected plans to buy Hummer, and GM officially ceased production this year (apparently the last Hummer H3 left the production plant in May 2010).

So the question now is; is GM going to continue to donate vehicles to the American Red Cross, or was it just a way to write off their unsold Hummers? If they do give the ARC more vehicles I hope they choose a more practical truck.