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Well their moat was a government bailout. A decade or so ago they were losing billions, meaning thousands per car, given that they sell a few million cars.
by unishark 6y ago
Well their moat was a government bailout. A decade or so ago they were losing billions, meaning thousands per car, given that they sell a few million cars.
- nicbou 6y agoThat's a good point. Ah the things you can do when you hold the economies of entire cities hostage.
- mywittyname 6y agoGM is still different. Automobile manufacturing is incredibly capital-intensive and it is incredibly difficult to weather reductions in demand. They still have to pay for the factories and equipment, regardless of of how many people are buying cars. They have to keep suppliers going during lean times because they can't manufacture every part they use. And they also have separation agreements with both dealerships and most workers, making it costly to reduce production capacity. It's trivial to send an auto manufacture into a financial tailspin. Frankly, it's amazing that so many manufactures have survived for this long.