User 237430

Default Risk of U.S. Automaker Debt: Too Big to Fail?

The Demographics has changed in the car buying population, yet over 90% of GM’s mid to upper management is still men – even though 49% of the workforce in America are women. I do not think GM knows how to take care of women. That's why women, who make up 65% of new car purchasers and influence 95% of new car buys, try to find whatever man they can to come with them into the dealership. It is like walking through a construction site with the men whistling. It is an awkward feeling that you do not feel safe; that the men at the dealership are about to take advantage of you. Studies show that both men and women prefer to buy their cars from women. Yet GM has only 3% of their dealerships owned by women. Another fact, those dealerships that are owned by women far out-pace, on average, the average male dealership in terms of sales.

Default Risk of U.S. Automaker Debt: Too Big to Fail?

GM does not know how to efficiently run a company. Instead of keeping up with the times, they fought vigorously to keep women-blacks-Latinos out of their white-collar workforce. This caused an environment of overpaid, white "yes" men who said yes to anything that upper management said. For example, people in the field heard over and over from dealers the need for more fuel efficient cars and trucks. GM ignored this and fought Congress to have any legislation for more fuel efficiencies. GM also spent the largest portion of their money in advertising on the internet. Even when there was proof that the money they took out of TV to pay for the internet banner advertising was decreasing their sales. There was an analysis done on this on a market by market basis that statistically proved the concept that the internet advertising was far less effective in selling cars than TV and newspaper. Yet, people were told that this information should be hidden. People wanted to say "yes" to the GM executives who came up with the idea of spending more money on the Internet.