Editorial: General Motors Death Watch 235: Where's Marion Robert Morrison When You Need Him?

Robert Farago
by Robert Farago

Moral relativism is inherently childish, as demonstrated by my eleven-year-old. “You don’t make Lola take her plate into the kitchen.” Any assertion that her sister’s age removes her from the obligation meets with a derisive snort. In fact, Sasha reckons she’s a victim of a cruel, capricious system. “It’s not fair!” she cries, storming off—until I threaten to yank her poker chip pay. Then, grudgingly, she does what needs doing. All of which reminds me of GM’s PR “narrative.” As their sales dip by half, they cry “Everyone’s sales numbers are a disaster! You can’t blame US for this mess.” And then they walk off and we clean up (i.e., pay for) their mess.

GM’s bondholders and union leaders “get it.” They know that GM lives in a world where actions don’t have consequences. No matter what The General does or doesn’t do, no matter what they build or don’t build, kindly Uncle Sam will keeping throwing them chips.

And who do you think scoops up those plastic pieces at the so-called bargaining table? Why the bondholders and union leaders, of course. When it comes to securing “their” stake, General Motors and its camp followers have learned that whining speaks louder than action.

“These are obviously unsustainable levels which are causing almost every major auto manufacturer across the world to look for government aid,” GM’s chief sales analyst Michael DiGiovanni said during a post-February sales numbers conference call.

See! Nobody else has to file bankruptcy! You want us to go C11? I hate you! I wish you were never born!

Plug your ears for a second and think about that. General Motors has just publicly admitted that they’re no longer a viable business. And no wonder.

When GM first suckled from the federal teat, their loan request was based on grabbing their “usual” share of an estimated seasonally adjusted annual sales rate (SAAR) of 11m vehicles. February’s SAAR clocked in at 9.8m. Oh, did you mean retail sales? That’s 7.5m. Nissan’s CEO figures SAAR will drop to 8.5m.

Bottom line: GM is too big to survive in such a small market, never mind the weakness of their products.

You could make a case that the precipitous sales drop was due to the unforeseeable collapse of the credit market. You could argue there was “no way” GM could have predicted these terrible times (although I won’t be joining you in that belief). But clearly, indisputably, GM should have known the way the winds were blowing back in December.

So how come GMNA’s Best and Brightest’s “worst case scenario” wasn’t even close to reality? Either GM management was woefully ignorant of their own business, or they were lying to Congress to minimize their [initial] call on the public purse.

After ten years charting this company’s course, watching as the crew plowed it straight into a killer iceberg (that a faltering economy has now revealed in all its terrible glory), I’d have to say GM’s misinformation was based on willful ignorance. And cowardice.

These are tough times. Times that try a man’s soul. What GM needs, what we all need, is true grit.

True grit refers to the character of a person who can look at their perilous situation without flinching, then devise a realistic plan to deal with it. Sometimes, the odds are insurmountable; even the best possible plan is doomed to failure. And then a person with real character does what has to be done; whatever they can do. No matter what the personal cost.

It’s no coincidence that The Alamo is one of John Wayne’s best-loved movies. It’s no coincidence that GM is bankrupt, without anything like a coherent plan to file for C11, reinvent itself and save what can be saved.

And here’s the missing puzzle piece: the aforementioned willingness to make a personal sacrifice.

Last year, at The New York Auto Show, I asked GM Car Czar Bob Lutz if his pension was bankruptcy-proof. I was really asking if he was personally committed to saving GM. Lutz’ derisive prevarication, followed by his recent retirement, answers that question once and for all.

In fact, GM’s management team are like a bunch of eleven-year-olds, willing to do most anything, blame anyone, to avoid accountability for the mess they’ve created. By the same token, they refuse to take responsibility for cleaning it up.

Unfortunately, it’s is no longer their problem. It’s ours. BUT, contrary to growing sentiment, it’s not our job to let management walk; take control and clean the god damn table ourselves.

GM is not our child. We can’t afford to feed it and take care of our own family. Nor should we let GM’s parents avoid responsibility for their own progeny. We’ve served them a hot meal. We’ve done more than our fair share. It’s time to show GM the door. Anything less is simply enabling and encouraging bad behavior.

Robert Farago
Robert Farago

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  • Daniel J This thing is just too big and not packaged great being RWD. I'd prefer a FWD/AWD pre 2024 Santa Fe sized vehicle. A true CX-70.
  • Ash78 Now that we're on the topic, I think Apple owes us all a ton of money for bringing out new phones every 1-2 years and devaluing the one I have! /sDepreciation has always been a part of car ownership, far more so now if you're getting into EVs. I think it's just the discrete nature of these depreciation events (ie, price cuts) that have everyone wringing their hands.I'm too price sensitive -- not necessarily to BUY an EV -- but for the fear of what a truly disruptive battery tech might do to them. Split the differene with a hybrid or PHEV and you've reduced your car's reliance on battery tech as the primary determinant of value.
  • Ash78 Interesting take on the pricing...superficially illogical, but Honda has been able to sell the Pilot Junior (er, Passport) for more than the Pilot for several years now. I guess this is the new norm. I have 2 kids, who often have friends, and I feel like the best option here is buying the CX-90 and removing the third row completely. It won't be pretty, but it adds useful space. We've done that in our minivan several times.I've been anxiously awaiting the 70 for over a year, but the pricing makes it a non-starter for me. I like the 50, but it's tight (small, not dope/fire/legit); I like the 90s, but it's more than we need. This "Goldilocks Solution" feels like it's missing the mark a little. Mazda could have gone with more of a CX-60 (ROW model) and just refreshed it for the US, but I suspect the 90 was selling so well, the more economical choice was just to make it the same basic car. Seems lazy to me.
  • FreedMike If you haven't tried out the CX-90, do so - it's a great driver, particularly with the PHEV powertrain.
  • Ajla I don't understand why it is priced above the CX-90 (about $2500 at every trim level on the I6 and $5k on the PHEV), unless a CX-90 price increase is on the way soon. It will be interesting to see how this does against the CX-90, that one isn't packaged well for a 3-row but with a lower price, very similar exterior styling and identical exterior dimensions I'd lean towards it over the 70. The pricing on higher trims is a bit dear for a nonpremium badge and it is annoying that Mazda and the press pretend that the lower nonS trims don't even exist. Why even bother making them if you won't take it to your own media event?I would expect the engine and chassis configuration to be a killer app here but it seems like engine/transmission is only 80% baked and the interior is what sells these. Reliability is a big question mark as well. In the end outside of a specific buyer (this seems like something Corey would like), I'd recommend getting something cheaper and more established.
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