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Next Float in the Parade of Lies: Government Motors


Recall that the FOA™ promised it wasn’t going to interfere with GM’s operations. More lies:

The WSJ reports:

Starting Jan. 4, General Motors Co. plans to do something unprecedented in the U.S. car industry: It will run its assembly line here around the clock on a permanent basis.

While common in other industries, not even car-efficiency benchmark Toyota Motor Corp. operates its plants routinely with more than two shifts. Car-assembly lines need too much scheduled maintenance and restocking for such intensive production to make sense, many industry experts say.

Later in the article:

The Obama administration auto task force that oversaw GM’s reorganization last spring was startled to learn that the industry standard for plants to be considered at 100% capacity was two shifts working about 250 days a year. In recommending that the government invest about $50 billion in GM, the task force urged the company to strive toward operating at 120% capacity by traditional standards.

But industry manufacturing experts are skeptical, noting that the federal task force had limited automotive experience. “Do those guys understand the business?” asked Ron Harbour, whose Harbour Report is a widely followed analysis of auto-plant efficiency.

Barry’s team is going to make GM appear more viable in the short run by overworking the production lines. Show a quarter or two of profit, let build quality slip, and leave nothing but burned-out machines and broken factories.

Then, after the next election, Barry will blame the (nominal) management of the company. He will propose more taxpayer dollars and a more direct Federal hand in operations to prevent a total collapse of GM and create jobs.

Déja vu…


I hearby nominate Barry for the first annual Roger Smith Management Excellence award. Maybe this could lead to another Nobel.