According to Jim Bunnell, GM's general director of dealer network support, "By doing this, we save a lot of time, energy and dollars, saving us and dealers from going through what could be a very long arbitration process". This is also a result of a relaunch of better selling cars, and a regaining of lost market shares. Furthermore, because of GM's and Ford's resurgence, and Toyota loss in market share, our imports have decreased, and our exports have increased, meaning our trade deficit has also decreased.
As we have discussed in class in regards to imports and exports, the Obama Administration's plan to grow out the GDP is slowly happening with the help of, "G.M., which is 60 percent owned by the Treasury Department as a result of the $50 billion in emergency loans that it received". This should also be good for taxpayers, because it appears as though GM will be paying back its debt quickly as well. GM's and Ford's recovery is hope for all companies that were affected by the financial crisis, because it shows that the American economy is recovery and more of our exports are being demanded. However, this new demands is also the result from a weak dollar, the stimulus plan, and "Cash for Clunkers" program.
What does this mean for Michigan? How do you think GM has done on its road to recovery? Is the recent revolution of the American car industry a result of market share losses by Toyota? How has this change in the economy been influenced by the Obama Administrations economic decisions? What does this mean for the trade deficit? Are we seeing a resurgent American economy?
I think the fact that the major motor companies are changing is directly a result of the success of foreign car companies such as toyota. They found themselves unable to compete with their efficiency and as Toyota began to grow the ability of the big 3 throw their weight around slowly became less and less. I think the fact that the companies are havig to look at themselves and change in order to survive is good and will definately help michigans economy because as we progress even more hopefully they will be able to adjust more readily and adapt to the new market unlike they did this time.
ReplyDeleteThis is great news for Michigan. Those 661 dealerships need to be filled with new cars so that will mean more production jobs will be returning as well. GM has done a great job turning around the company after it's bankruptcy. I definitely think that the market losses by Toyota had a hand in what has happened. With a loss of that size in the market, someone had to fill it and I"m glad it was GM. The U.S economy is definitely starting to head in the right direction and I can't wait to see the results. A
ReplyDeleteI think this is great for Michigan. A long while back, someone posted something about farming being a possible new identity for Detroit, and I'd be really saddened if farming took the place of the auto company. My hometown is Dearborn, so we started suffering almost immediately when things turned sour for the auto companies, since Ford was the first one to start to experience difficulties. However, it's important to remember that Ford was also the first to start to recover. Hopefully GM will follow suit.
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I would be hesitant to say that the economy is going to improve back to past levels with the reopening of these dealerships. I think that the recent toyota recalls proves that the auto industry is a pretty unstable one, and that in the future no one firm will be able to dominate for long. The American people have changed their views and expectations for what they want in a vehicle, there is no longer commitment to an American brand. Maybe the toyota recall has made some people hesitant about buying foreign brands, but in this global economy foreign owned brand still means many american jobs. I for one know a woman who is a chemist working for toyota here in michigan. Even when it seems better when foreign competition does worse, one has to keep in perspective all the links across the ocean to countries that the US has. I hope that GM and Ford recover to a state of independence from governmental intervention. I doubt if they will ever return to their heyday glory or if Detroit will ever really be motorcity...we'll have to see how things work out in the long run.
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I am not sure if the economy is recovery but based on recent news reports and statistics on recent GDP, the economy seems to be recovering. The Toyota recall does have a great impact on other auto makers like GM. I hope they will take advantage of this opportunity.
ReplyDeleteI think that imports has decreased because Toyota usually imports its car parts to be assembled here in the US. However, now that there is a decrease or halt in production, there is less of these products imported. Furthermore, the Obama stimulus plan has also helped with a reduction in imports. On the other hand, there might be an increase because of an increase in production of US owned vehicles to meet the needs of consumers who are no longer buying from Toyota.
If GM improves, it should be good news for Michigan because the auto-industry is Michigan's specialty. A
GM plan to pay back most of the government debt by going public again this year, hopefully almost 25 billion will be raised by the sale of shares,and treasury losses may be recouped.
ReplyDeleteI agree with a lot of the above comments that this is good news for Michigan, and just the economy in general. It's great to see GM turn things around and get these dealerships open with new job opportunities. I don't think this means that the economy is now fine, but it's definitely a step in the right direction. A
ReplyDeleteIt is good to see that GM is doing better again, even if GM is nowhere close to being the powerhouse company it once was. I also agree that this could be excellent that Michigan could get some of its jobs back because of the reopening of companies. Even with improvements such as GM's growth I do not ,however, believe that the economy is going to get back to its former levels soon. The recession seriously diminished the size and power of GM and it is going to take a lot of time and improvement to see growth and productivity reach former levels.
ReplyDeleteIt seems strange to me that we're all so happy to see the economy returning to where it was in the manner that it was--why don't we learn from our mistakes and build a different kind of economy, a sustainable one. One not based on cars, one not seeking obscene growth, one more creative than limiting the Michigan economy to cars which will ruin us again in a couple decades when we haven't properly invested in alternative energy and suddenly oil is really expensive. So how about instead of manufacturing cars, we make wind farms. Windfarms can also be built in the same land as farms, which would allow local food to be grown, also supporting the Michigan population and reducing our carbon footprint.
ReplyDeleteThis is a good new for Michigan,i think it is also a good chance for GM to learn from the foreign motor companies such as Toyota, they should open more international business area, and also build more selling networks in nationwide to illustrate the quality of their cars compare to the recalled cars. Many consumers would love to listen because they consider their safty for sure. A
ReplyDeleteThis is definitely exciting news for Michigan's economy. The fact that GM is reinstating 661 car dealerships will definitely help their business flourish. Yet I wonder if people are hesitant to buy a new car. Last week GM had a recall on Chevrolet Cobalt models for a power steering defect. I would like to say that GM is on the road to recovery yet I wonder if this will be the case. A
ReplyDeleteGM may be reinstating 661 dealers, but they had cut around 1,100 to begin with. They're not creating new jobs or starting new dealerships, they're simply not cutting as many. Which is good news for the dealers that manage to stay with the company. The dealers that did not make the list will be forced to struggle to find a new supplier of automobiles, or have to shut down their business. GM is not the only company shutting down dealerships, either; Chrysler has also been forced to shut some down.
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It is good for Michigan that GM is doing better. When the Big Three fell, so did the state, because we relied so heavily on the auto industry. To see 661 dealerships reopening is a very good sign not only for the auto industry, but also the state of Michigan as well. With Toyota having the devastating recalls and shifty answers to try and explain why there were so many recalls, this is definitely going to help the Big Three gain back some of the costumers they have lost over the past couple of years with the bailout and other bruises their images have taken. Its good to see GM moving in the right direction, and so far, Obama's decision to bail out the Big Three is looking like the right move. (A)
ReplyDeleteI believe that GM has done an excellent job rebounding from their crisis. Seeing them do so is actually pleasing for me on a personal basis, because my mother works for GM. I understand that this will be great for helping our economy rebound as well, and it will be great for my family.
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