Confronting flagging sales, GM is unleashing a slew of new and updated models.
Sales of current models have fallen 25% in the first five months of 2005 versus a year ago, and the auto maker reported a $1.3 billion first-quarter loss. To add insult to injury, its corporate bonds were relegated to junk status as investors began to question GM's solvency.
Raw Story describes the updates as new and better looking, whick begs the question, why do automakers make ugly cars? They especially seem to think that just because a car is relatively inexpensive that the design has to be crappy, whereas good design costs little or nothing to include. Is it arrogance; thinking that consumers will buy the vehicles no matter what simply because they're made by GM? Or are they afraid that high-style lower-cost offerings will cannibalize the luxury sales? Although I often wonder if people pay more just so that they can flaunt how much they did pay.
Whatever, the answer GM needs a miracle. They've been caught flat-footed by the surge in gas prices over the last year and a half much as they were back in the mid-70's gas crunch. Their tardiness in bringing hybrids and more fuel efficient models into show rooms, makes me wonder if they learned their lesson.