Porsche are shopping around for acquisitions. Could they, would they? Dare I even think about them purchasing Saab, giving GM a cash injection and Saab a very fast future? Oh, the possibilities…
In the 99% event that this doesn’t happen, you have to keep an eye on GM’s road toward possible bankruptcy and the preview we’re getting with Delphi. I posted on your typical Delphi employee the other day, a guy who’s wages will always divide reader’s comments.
The Detroit News has what I think is a pretty good summary of the current situation in a story covering GM CEO Rick Wagoner’s entry into the Delphi/UAW negotiations:
This may be Detroit, the nation’s capital for denial, but this bankruptcy cannot be stopped. It can only be slowed, which is what GM’s arrival at the table means.
Delphi is broken, partly because of uncompetitive contracts with its former parent, GM; partly because those deals tie it to uncompetitive businesses it no longer wants to be in; partly because (mostly former) management at both companies were cowed by confrontation and took the easy way out.
The UAW is broken, too, clinging to a wage-and-benefit regime that enriched previous generations but threatens to impoverish tomorrow’s if it remains unmodified.
Yes, GM will lose big if a Detroit Meltdown cannot be averted and forces the automaker into bankruptcy. But the UAW and its members would lose bigger because GM is their Mother Lode.