More bad news for GM
The Free Press details a series of Enronesque accounting errors (GM calls them honest mistakes) each and every one of which just so happened to be in the company's favor.
"'The evidence is there was a string of errors, all going in one direction, giving a more positive light to GM's results,' said Charles Mulford, an accounting professor at the Georgia Institute of Technology who has studied accounting at GM and other large companies. 'Simple, honest errors go both ways. Investors were misled, in my view.'"
Meanwhile, New York Times columnist Thomas Friedman criticizes GM's plan to give gas rebates to people who buy new gas guzzlers such as the Hummer. Instead of building vehicles that get good gas mileage (you know, products consumers want to buy), GM has decided to continue pushing its current products and give people who buy them rebates for every penny over $1.99 they pay for gas.
Friedman, in his typical hyperbolic style, asks "Is there a company more dangerous to America's future than General Motors? Surely, the sooner this company gets taken over by Toyota, the better off our country will be."
GM's response is here and basically makes two important points. First, it says, "GM offers more vehicles that get 30 mpg or better EPA highway mileage than any other automaker. More than Toyota. More than Honda. More than Nissan." And second, it says people who buy large trucks and SUV's are going to buy them anyway; for large families, towing or work. "But let's be intellectually honest here: A gas card is not going to get someone considering a $15,000 economy car to buy a $35,000 Chevy Tahoe."
Meanwhile, Diamler-Chrysler is going to announce in June if the Smart Car will be sold in the United States.
To those of us who call Southeast Michigan home (especially those of us whose aging parents rely on GM pensions and health care benefits), what happens at GM matters. Let's hope they get some smart folks in there to provide the leadership that has been so lacking the past few decades. It really is crucial to the future of this area of the country and the people who live here.
"'The evidence is there was a string of errors, all going in one direction, giving a more positive light to GM's results,' said Charles Mulford, an accounting professor at the Georgia Institute of Technology who has studied accounting at GM and other large companies. 'Simple, honest errors go both ways. Investors were misled, in my view.'"
Meanwhile, New York Times columnist Thomas Friedman criticizes GM's plan to give gas rebates to people who buy new gas guzzlers such as the Hummer. Instead of building vehicles that get good gas mileage (you know, products consumers want to buy), GM has decided to continue pushing its current products and give people who buy them rebates for every penny over $1.99 they pay for gas.
Friedman, in his typical hyperbolic style, asks "Is there a company more dangerous to America's future than General Motors? Surely, the sooner this company gets taken over by Toyota, the better off our country will be."
GM's response is here and basically makes two important points. First, it says, "GM offers more vehicles that get 30 mpg or better EPA highway mileage than any other automaker. More than Toyota. More than Honda. More than Nissan." And second, it says people who buy large trucks and SUV's are going to buy them anyway; for large families, towing or work. "But let's be intellectually honest here: A gas card is not going to get someone considering a $15,000 economy car to buy a $35,000 Chevy Tahoe."
Meanwhile, Diamler-Chrysler is going to announce in June if the Smart Car will be sold in the United States.
To those of us who call Southeast Michigan home (especially those of us whose aging parents rely on GM pensions and health care benefits), what happens at GM matters. Let's hope they get some smart folks in there to provide the leadership that has been so lacking the past few decades. It really is crucial to the future of this area of the country and the people who live here.
posted by Mookie at
5:14 PM
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