Posted 8:08 PM by steve

What rationale did GM have for waiting until today to reveal plans to shut down over 1,000 dealers and why did it feel it could have and should have waited until yesterday to announce its plans to shut down the Pontiac line?

It isn't as if GM just discovered it had too many dealers. Nor did it take until this week for GM to realize that it could no longer carry Pontiac.

No, just as with GM needing to lower its high labor costs and pension and related liabilities, these are steps that GM knew a long time ago it needed to address. But instead of actually doing something to fix its problems, it dragged its heels, so much so that the entire company went down the tubes.

Imagine if GM management actually had the guts to force the issue back when they were selling twice as many cars as they are now. Sure, they would have taken a huge hit to profitability... but they would have emerged in a much better position to weather today's economic problems.

And, just to be clear, the blame doesn't lie entirely with GM management. Sure, they fiddled while the company burned. But they were allowed to do so by GM shareholders. GM shareholders could have - through its board of directors - forced management to take action.... but they didn't and now they stand to lose all but a penny or so of every dollar of equity. I am not rejoicing at their misfortune... but neither am I crying for them.