http://www.businessweek.com/bwdaily/dnflash/oct2005/nf20051017_7171_db035.htmIn other news, GM is looking to sell it's GMAC unit which will bring in a good bit of cash. But, as I heard it described so appropriately, GMAC is the last bit of furniture left in GM's house, and they have nothing left to sell. They lost almost $3 BILLION dollars in *Q3* 2005. This negotiation will save them about $3B per year, so they obviously have a long way to go. The problem that I see is that the american companies (GM, Ford, Diamler-whatsitcalled) have gotten so out of touch with what the US consumer wants, combined with a product development cycle time that spans almost 5 years, they are not geared to compete in this market, especially with gas at $3 per gallon. The Japanese and Korean car companies have decades of experience in maximizing profits, quality and competing in dymanic makets where external pressures like fuel costs are a fact of life.
The European companies have much of the same experience, but we are seeing a steady sinking into the toilet on quality. They are relying on their name too much - remember the story about watering down the pea soup? BMW, Mercedes, etc are doing just that.
