In his Forbes column, Jerry Flint ponders the state of Detroit auto executives and their hold on their jobs.
Because I own stock in General Motors (NYSE:GM), I found this bit interesting:
If there's an exception to the head-rolling, it's General Motors. Despite all its troubles over the past dozen years the GM management has been amazingly stable. The board of directors has been willing to accept any disaster without shaking the management tree. Even Captain Kirk (meaning Kirk Kerkorian, who owned 10% of the stock) wasn't able to shake the tree.
And this part further down the piece also catches my eye:
Which brings us to the questions I am always asked: Will General Motors and Ford (NYSE:F) survive? GM's chief executive is the financial type. Costs are his strengths. But he is ably assisted by that well-traveled car guy, Robert Lutz. GM is doing better. It has arrived, if not at a turnaround, at a solid improvement. If there is no real slowdown in the industry--a really big "if"--the GM revival should continue.
You know I think the GM revival will continue. And, as I keep reminding people, for GM to work as an investment does not depend on it regaining its dominant status of several decades ago.
If I'm right about the company, the investment will work because of the price paid for its stock. I know I bought early. Whether or not I bought too early remains to be seen. I bought GM in 2005. We're at the end of 2006. I anticipate holding it for a while yet. If that changes, you'll read about it here.
GM 1-yr chart