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 Editorials | November 2005 
"As General Motors Goes..."
 Peter Wells Scott - PVNN
| | General Motors Chairman and Chief Executive Wagoner at a news conference at the company's world headquarters in Detroit. (Rebecca Cook/Reuters) |
It is a stroke out of the 40's, but the saying went, "As General Motors goes, so goes the nation." General Motors was doing well, and the nation seemed to follow. But, times change. General Motors is still the world's largest automaker, but, just recently they have announced the closing of 12 plants, and the return to profitability has to break through many clouds.
The company has embarked on a 7 billion cost cutting program, the largest cutbacks in over a decade. Ten days ago the stock closed at a 14 year low. They have stuck with the once booming SUV market for too long of a period, with consumer demand chocked by gas prices that no one could foresee. Add to that the tremendous demand for foreign products, particularly from Japan. Some 30,000 hourly workers will be eased out, read that "forced out" over the next few years.
A friend came to visit his condo in Puerto Vallarta after a year's absence. He is a resident of Toledo, Ohio. He has over 200 friends and business associates. All are on the same page. It used to be "When can I look forward to retirement?" The tune has changed. The theme now is "When will I be forced to cut and run."
The last time I spoke to him he had several flourishing manufacturing plants in China. Now he says the products sent to him are inferior, but he had paid for them in advance, so his bottom line is hurting. He has 20 stateside employees, and he pays $8000 USD a month in medical protection, his share for them.
In his terms, "I am forced to spend old money because the new money is just not there." His employees plead with him to work on weekends for "cash only." Everyone wants cash. No paper work, please. Signs of a deteriorating economy.
To those ex-pats who had the foresight to cut and run from this malaise, and with enough money to forge a new path, kudos to them. It takes a little imagination and discipline to create a life composed of more than sun and surf, but once on the path there is much to be grateful for. The turkeys may be a smidgeon smaller in Mexico this year, but sitting at the Marriott one can say a prayer for the folks back in Baton Rouge and Detroit, whose fortunes don't include a turkey of any size. |
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