We’d be drunk if we took a sip of beer everytime some yacker on CNBC said something along the lines of “GM’s problem is that they make cars nobody wants to buy.”
As the WSJ chart below shows, GM (the blue line) remains the market share leader in the US. That lead has eroded over the years, to be sure, and it’s very truck-heavy. The Chevy Silverado is still the second-best selling vehicle in the country, behind the Ford F-Series truck, which is #1. Regardless, it doesn’t stand that the company is making vehicles nobody wants to buy.
Does this bolster GM’s case for a bailout? No. Well, not really. Yes, the company is still selling vehicles, so it’s got that going for them. But when a company can be a domestic leader and still bleed so much money, it’s obvious that just throwing money in the pit isn’t the answer. It needs the type of dramatic restructuring and reuse of assets that it’d get through bankruptcy.
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