Richard Wagoner, chief executive of General Motors, Robert L. Nardelli, chief executive of Chrysler, Alan R. Mulally, chief executive of Ford, and Ron Gettelfinger, head of the United Automobile Workers, during the House Financial Services Committee hearing on the bailout of the Detroit automakers on Friday
When General Motors unveiled the Saturn in 1990, customers loved the brand's 'no haggle pricing' policy. But they're not buying anymore. Saturn has just 1 percent of the market and GM has slapped a 'for sale' sign on the brand, as CBS News Business Correspondent Anthony Mason reports.So my question is: does GM (or the other auto-makers) have any brands that anyone is willing to buy? If so, then have them sell them. That will minimize the impact of bankruptcy on the economy. If not, then the only reason to prop the companies up is to keep its employees—and their suppliers—off unemployment. It's essentially unemployment benefits disguised as a job. But as long as the government is paying them to work, why not get something productive from their labors, like a bridge or other infrastructure.
'They have to sell Saturn. They also probably have to do something with Pontiac,' says Kevin Tynan, senior auto analyst at Argus Research.
Tynan says the problem is simple. General Motors has eight brands and 57 models. Toyota sells nearly as many cars and trucks with just three brands and 32 models.