The Watchman Letter: The Generals Motor years of management debacles means Game Over for GM

Larry Kudlow met with CEO Mary Barra and "had conveyed the president’s anger to Barra, and explained that Trump feels betrayed by GM, and that he believes the carmaker “turned their back on him” by announcing the layoffs and plant closures, particularly after the Trump tax cuts handed billions of dollars back to corporations and allowed them to repatriate overseas cash".
For once I agree with Larry Kudlow.

Management Mistakes:

1. The Chevy Volt Hybrid debacle. If GM was serious about the future of Electric Cars, they would of produced an 100% EV Car instead of a expensive Hybrid.

2. Out sourcing parts like engines overseas. I was shocked to see
   Buick Le saber build sheets with parts from China, Mexico and Europe. Americans purchased a Buick because it was made in the USA.

3. Expansion of GM into Global Markets. GM had no business trying to expand into Global Markets like China
   until they conquered the US Market.

4. The closure of the Saturn Division. The argument to not to save the Saturn Division was it was never a profit power house like the other Divisions. But the Saturn name represented affordable and dependable Cars and had loyal customers. I believed if GM had upgraded some of the Saturn's parts and continued to improve fuel efficiency. The Saturn could of taken market share from Toyota & Nissan as their vehicle quality was declining.

5. GM Divisions Competing on multiple product lines. Every Division had an entry level Sub-Compact Car. Customers did not go to Pontiac to purchase a Sub-Compact car they went to Pontiac for a performance sedan or muscle car & the same for Chevy. Customers would go to Saturn for the no frills economy cars.

6. GM's $10 Billion in Stock Buy Back Program. A Corporation that received Tax Payers Money to save it from Bankruptcy has no business Buying Back Stocks. This reflects Executive self Interest.

After the Tax Payer Bail Outs GM had an opportunity to change its archaic management culture and streamline its operations to compete in the highly competitive Automobile Industry. But GM was unable or unwilling to change with the times.

General Motors will not survive the next Recession.