Monday, November 17, 2008
GM again
Extending this post on bankruptcy vs bailout.
The union boys, who advocate bailing out GM without improving GM, are saying today that "Nobody will buy a car from a bankrupt company."
The Studebaker example disproves that point. Granted, Studie was always far below GM in overall sales, so the example may not apply to a true mass-market brand.
Here's a list of Studebaker annual sales numbers through the '30s:
1930 60k
1931 44k
1932 47k
1933 35k (bankruptcy)
1934 60k (new mgmt)
1935 43k
1936 56k
1937 101k
1938 47k
1939 85k (new low-priced Champion)
As you can see, the new management reassured customers.
= = = = =
Later: I've changed my mind. ¶ 8:40 AM
The union boys, who advocate bailing out GM without improving GM, are saying today that "Nobody will buy a car from a bankrupt company."
The Studebaker example disproves that point. Granted, Studie was always far below GM in overall sales, so the example may not apply to a true mass-market brand.
Here's a list of Studebaker annual sales numbers through the '30s:
1930 60k
1931 44k
1932 47k
1933 35k (bankruptcy)
1934 60k (new mgmt)
1935 43k
1936 56k
1937 101k
1938 47k
1939 85k (new low-priced Champion)
As you can see, the new management reassured customers.
= = = = =
Later: I've changed my mind. ¶ 8:40 AM
