UseMyFedTaxesInMyState

General Motors: The Next Growth Story?

The easiest way for GM to be successful would be to make all previous obligations to dealers, governments and employees disappear. If workers work for free and if vehicle prices are raised significantly higher, then GM would quickly get to profitability. Anything less than this scenario will take longer than most have the appetite for. It is interesting that our over-built housing market is basically undergoing the same economic disruption. Our over-capacitized retail footprint is also experiencing disruption.
If one considers the Japanese automotive market, one may recognize how restrictive it is to import foreign automobiles into Japan. Why is it that Japan does not offer financial or tax incentives to foreign auto manufacturers to build plants in Japan? Yet, in the US, we continue to incentivize foreign manufacturers to build additional auto manufacturing capacity. In their home market, the Japanese have learned it is not wise to misallocate human resources by “seeding” additional auto jobs.

Our land of the "free" eventually becomes the land of the "excess" in which the foreign companies get what they want, yet American taxpayers are left to financially reconcile the consequences of our own poor resources planning and strategy.