Thursday, October 30, 2008


As reported in The Financial Times via The Drudge Report Michael DiGiovanni, head of global marketing and industry analysis at General Motors is calling the market bottom.

His reasoning, in part, is that GM's sales in Latin America rose 3.4% and 2.6% in Asia in the third quarter. Never mind that North American sales fell 18.9% and 12.3% in Europe during the same time period. Also left unsaid was that GM is currently blowing through their $25 billion gift from us consumers to the tune of $1 billion a month, just to stay afloat. Or, that they are planning to lay off 25% of salaried and contract workers by the end of the year, so they can afford to buy Chrysler.

Mr DiGiovanni went on to state the obvious; "Once we start growing again, productivity will be greatly enhanced". Well, yes. Productivity and growth do tend to move in tandem.

Mr DiGiovanni might want to take a look at the sales numbers of Spam, crackers, ammunition and silver ingots. You know, the things we consumer/taxpayers buy to stash under our floorboards and bury in our backyards instead of buying new cars that get 12mpg. Just a thought.

1 comment:

Tom said...

The whole deal is a lot of BS.

Thanks for the link.