GM ignored the warning signs


They screwed up, they should face the consequences
The real question is why the FedGovs want to bail GM out after this happened.

The frozen credit markets signaled the end of an era of easy money that delayed GM’s day of reckoning. In a parallel to the housing bubble, GM and its Big Three brethren enjoyed a decade of artificially inflated sales. Finance companies did a booming business in subprime auto loans, a rarity in 2000, which accounted for 18 percent of new-car financing by 2005, according to CNW Market Research in Bandon, Oregon. And the automakers’ own subsidiaries offered low-interest financing that helped move cars off dealers’ lots.

That did nothing to stem GM’s steady loss of market share in the U.S., from 30 percent in 2000 to 22 percent today. It did help keep the industry’s annual U.S. sales at or near record levels, topping 17 million vehicles.

The article is a detailed timeline of how GM crashed.

Look for the credit card company bailout soon.

— NeoWayland

Posted: Sat - December 13, 2008 at 01:21 PM  Tag


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