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You know a company is in trouble when it cuts

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Old 12-07-2005 | 01:07 PM
  #11  
NFRs2000NYC's Avatar
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I agree with you Hoth. GM needs better products, not cutting corners everywhere else. My dads friend just got a brand new DTS, and its already at the dealer for problems. Car has less than 500 miles. Toyota/Nissan need to build a super duty pickup (ford 250/350 sized) and put the final nail in their coffin.
Old 12-07-2005 | 01:27 PM
  #12  
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Originally Posted by The Hoth,Dec 6 2005, 03:34 PM
Buying losers(Jaguar, landRover.....etc) and selling winner (Subaru's parent company). You have to give it to GM. They are genius!
While I like to point out that GM is run by idiots whenever I can, to be fair, selling winners is not always a decision made by stupid management. If a company is in dire straits and needs cash just to stay out of bankruptcy, most times, the winning parts of an operation are the only ones someone will buy.

My girlfriend works for a utility conglomerate and they have small utilities in many states. They were strapped for cash and were going to be taken over or run out of business if they could not come up with cash. They tried to sell money losers, but nobody will buy them. They had to sell profitable ones to live to fight another day.

If selling Subaru helps them pay down and restructure debt it might be a good move in the long run. Although I might be giving their management too much credit.............
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