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Wednesday, December 02, 2009

WHAT IS NEXT FOR GM

GM'S BOARD MADE THE RIGHT DECISION IN DUMPING HENDERSON: Henderson was the wrong pick from the very begining of the New Gm. The key to Gm's future now will be determined by how much cash it has. The government may have poured $50 billion into the company but that isnt its current cash position. It proably has used up a lot of money during the last year. If Gm has more then 25 billion in the vaults then it still has time to turn things around. But if it has less then 15 billion in cash then it proably will have to merge.
A Chrysler Gm merger is a possiblity with the current Chairmen of Chrysler running the whole thing. He turned Fiat around. So he understands the car business.
The best scenerio for Gm is that they can stay an independent company without a merger and pick a leader who knows how to create product like Phil Murtaugh. But that takes a lot of money and time. Creating and developing new product is costly. The question now is does Gm have the money to do it.