To the Editor:
I am writing about John K. Teahen Jr.'s March 10 SalesTales column on a car comeback. I have been an economics teacher for 28 years and also worked for General Motors for 20 years as well as some Tier 1 and 2 suppliers.
I like Teahen's analysis. It is a breath of fresh air. My own feelings: The "Bug 3" have had their heads in the sand for so long, they cannot survive in the long run.
Incredibly inept management prevails, especially at GM and Ford. Tier 1 suppliers are horribly inefficient, but GM is saving so much money by outsourcing that it has no clue that those suppliers could be operating more efficiently.
I have been predicting that GM faces a greater chance of bankruptcy than anyone. The roof should start caving in about April to June of this year. Their financials are incredibly bad.
Prediction: As with Chrysler, foreigners will gobble up GM and Ford. My feeling is that Toyota will take over Ford, and Honda will absorb GM.
GM must shed more than just Oldsmobile. At least two more divisions must go very quickly. When Honda (or Toyota) takes over GM, you can kiss the car lines goodbye.