Is Obamas Green Push Forcing GM To Shed A Profitable Brand?
See Also: Hugh Hendry’s Full 2009 Performance Revealed, And It Was Ugly Meet Theo Lubke: The Regulator That Goldman Sachs Just Hired To Fight Off Other Regulators Chip Skowron And 27 Other FrontPoint Employees Just Got Sacked As, GM (GM) figures out what brands to sell, which ones to keep and which ones to just pull the plug on, you’d think the goal would be to consolidate the units that are the most profitable, while tossing the money losers. But it sounds like the administration, seeing the world through green-colored glasses, sees things differently. The Journal reports that GM is being pressured to dump its GMC light trucks business. Why? Well sales are down, that’s certainly true. And as a maker of trucks and SUVs it’s one of the worst with respect to fuel efficiency and the environment. But as the article notes, this is one of the company’s highest-margin lines. If you think the market for cars is going to stabilize and recover, GMC would likely be one of the company’s big source
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