GM: Die or change
What is happening to the dinosaurs of the automotive industry today is most likely a precursor to what will afflict big oil down the road if it also fails to invest in radical but inevitable alternatives to their bread and butter. (For a prior example of adapting to change, study Rank Hovis.) GM, like the oil companies today, could have invested their billions in viable alternatives to the internal combustion engine, more compact and lightweight vehicles, sustainable energy sources and innovative distribution methods – such as ‘Better Place’. Like the majority of the businesses collapsing during this ‘credit’ crunch, GM are in trouble because in lean times, flawed entities implode. Any ‘bail out’ should be focused on brave new companies who like the automotive firms that blossomed after the age of the horse and cart, possess the energy, passion and technology to develop practical vehicles of the future.
If tax payers money is to be thrown at the old school corporations, then the prerequisite should be that said companies buy, invest in or co-operate with automotive upstarts – such as Tesla Motors.
Fight back club: As ever, vote with your wallets. If you are going to buy a car, buy one from a company lead by people who care as much about the big round thing their vehicles traverse as they do their bottom line.