Thursday, February 19, 2009

A Quick Question--Who Ever Heard Of A 900 Page Business Plan?

Well that's what GM presented to congress recently. Who is even going to read a 900 page business plan? It certainly can't be a useful road map for how executives are going to run the business in the future.

I think they probably only need a 5 page plan that discusses:

1. Going bankrupt so as to eliminate the crappy UAW contract.
2. Shutting down unprofitable brands.
3. Closing inefficient factories.
4. Moving existing inventory. I would give consumers a 3 for 1 deal. Buy the first car at sticker price and you get two more for does not matter what models these are, let the consumer have 3 Cadillacs if they want them; or for that matter 3 SUVs. These cars are now rotting on dealer lots, storage facilities or they are rusting away at salt-water ports.
5. Furlough all workers (with some pay benefits) for as long as it takes to move significant inventory. So what if you're giving the public a three-fer...GM hasn't made a profit for years; they don't need profit right now, they need cash flow and if this program is successful it will cut expenses and deliver that cash flow.

There are probably a few more things you would want to write about in the 5 page business plan.

I secretly suspect that GM handed Congress this 900 page travesty so as to obfuscate the issues and confuse the Congressmen who are looking at dropping $39B more down the commode.

1 comment:

  1. Here is a good article. Follow one of the links and you find an August 2007 article saying the industry is going to collapse.