General Motors Corp. (NYSE: GM) CEO Rick Wagoner told the media this week that there would be no bankruptcy for the beleaguered automaker. While GM and rivals wind down SUV production and see what they can do with the glut of big, gas-hogging trucks in inventory, Wagoner assured the world that GM would not be shutting down any of its brands as a result of its current financial difficulty.And then came the standard, boring corporate speak from Wagoner when he said that the company's focus is on evolving its various brands to make them more profitable and meet consumer needs.
Well, duh. Isn't that the SOP for every automaker during every quarter? GM has not marketed itself well to the gas-conscious crowd nor was it in a position to change its product mix swiftly as consumer attitudes towards gas efficiency changed almost overnight.
With GM shares trading for under $10 now -- the lowest price in about 50 years -- the company can't spin more rhetoric. It's put up or shut down time. That is, unless gas prices go down and the economy improves. I won't take that bet with anyone for the foreseeable future. Will you?
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