GM's CEO: Bankruptcy Possible Before 60-Day Deadline
GM and Chrysler are both on the brink of filing bankruptcy. The Obama administration is trying to help them out but are not exactly bailing out the auto makers. The government wants GM to carve out its recovery path before it can promise more money. Maybe the Obama administration had a bitter experience of bailing out AIG unconditionally. Maybe the government wants to be more proactive on how they control the money before even promising to give the money. Not a bad strategy.
So what happened to GM and where are they? Here is a short history lesson.
General Motors Corporation (GM) was founded in 1908 and it is world's second-largest automaker after Toyota, ranked by 2008 global unit sales. GMs cars and trucks include Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Poniac, Saab and Saturn. The company went through its own ups and downs. In 1990s the US economy was on the rise and GM gained a huge market share by producing enormous sale of light trucks and sport-utility vehicles. In 2004, GM redirected resources from the development of new sedans to light trucks and SUVs. The SUVs were gas guzzlers but still very popular and kept the automaker revenue high. However in 2008, there was a rapid rise in gas price that resulted in steep drop off sales of SUVs. The declining sales of SUV caused the GMs profit margin and the GM stocks started sliding down. The stocks that were in the range of $20 slid to $2.5. The financial crisis, namely the recession that shook the Wall Street also shook GM and Chrysler. It became evident that they would need an external helping hand to keep them from sinking. The federal government loaned $13.4 billion to the struggling automaker so that they can continue floating. Recently, Obama administration evaluated the company's status and gave it a failing grade for its efforts to come out of the crisis. Government is not ready to give more taxpayers money to bailout unless the company shows promising signs of recovery in terms of restructuring the products, finances and the management. The Obama administration has given a grace period of 60 days for the GM to come up with radical changes else it may have to face bankruptcy. As the first step, the GM CEO Rick Wagoner stepped down to give way to changes that could be brought by a new vision and new direction by a new person, the next CEO, namely Fritz Henderson. Fritz understands the urgency of the situation. He has a great challenge of saving the company from bankruptcy.
The first thing that comes to my mind is that how come GM along with Chrysler is so badly affected while Ford and other international automakers survived or rather holding on even in these bad economic times. What did GM do that pulled its stock so down? Well, lot of mistakes. They were stuck in improving the existing models. They spent more time and energy in changing the looks and interiors of the vehicles and in the process lost the hybrid car market. It is sad but true that GM was a pioneer of the hybrid cards. It was ahead in the game a decade back. The GM engineers built the EV1, the first modern production electric vehicle that was introduced in 1996 in limited "lease only" agreement. The EV1 had bunch of issues - the technology was new, the market was not ready and the innovations around the hybrid cars like the batteries etc were still not mature. The cars performed badly. The EV1 were not profitable and therefore GM discontinued it in 1999. This was one of the worst decisions taken by GM - axing the EV1 electric-car program and not putting more resources into the hybrids. Instead, GM redirected its resources towards SUVs. Yes, SUVs made more profits at that time but it fell through when the gas prices rose.
Great companies are built on creating new markets, not incresing market share in existing ones. This was the vision of Tata's when they decided to put a car for a price of $2500 or less on the roads of India. India's no. 1 requirement was cheap car - less power, less speed but more efficient was the motto. Today, the Tata Nano is a reality - a car that the middle class in India can afford. GM needs to learn a lesson from the Tata's, think ahead, envision the 21st century auto requirements and build a futuristic car. If GM has to emerge again and raise up, they have to build something new, something different, something that is more aligned with today's needs - a cleaner, safer, hi-tech, fuel efficient car!
Tuesday, March 31, 2009
Monday, March 16, 2009
Seattle Paper Shifts Entirely to the Web
The Seattle's popular newspaper, the Seattle Post-Intelligence is ceasing publication starting tomorrow. The paper published its final print and is transforming to an online-only version. Seattle P-I lost $14 million in 2008. The staff is reduced from 165 to 20 and the newspaper is reduced to little of original reporting and more of links to other news sites. It is the first one to go out of print, but surely not the last one. There are many more to follow the same path. The next in line may be our hometown newspaper - The San Francisco Chronicle! It has lost $50 million last year and may loose more this year.
Are the newspapers going out of business due to the current economic downturn? Yes, of course. The recession bug has not left any sector untouched. But maybe this was bound to happen. Maybe it is an evolutionary change. Maybe it is inevitable!
If I see myself, I read news only online. I don't care for paper newspaper. I go to my favorite bookmark news paper sites, read through the headlines and get all the news that I want in an hour or so and I don't even need to bother to recycling the paper. Are there still people who write paper letters and send paper greeting cards? Maybe few, but they are definitely the last few clinging to the old ways. Newspapers are giving way to e-papers, books are giving way to e-books, bookstores are giving way to e-stores and so forth. But is this the case with everyone? Of course not. If you go to your local coffee joint early afternoon, you will find a lot of people, typically from the older generation, reading paper and sipping coffee. Reading newspaper is an enjoyable pass time for them. They love to hold the paper, do the crosswords and cut the coupons.
All said, I still have a fascination for paper books. The same me who detest "paper" newspaper, love to read from a real book instead of an e-version of the same book. Why? Because I develop a special bond with my book. I like to hold it, open it, smell it and read it. It is personal. I agree that it doesn't have the fancy features of an e-version of the book. It doesn't have the much wanted "find" button. But still, e-book lacks the charm that a paper book has. The joy of possessing a good book, arranging it in the bookshelf is never the same as that of having an e-version of it stored in the hard disk.
Maybe there are people who feel the same way for the paper version of newspaper. Maybe they are dreading to live in a world with no real newspaper. So am I, dreading to live in a world void of real books. Maybe I should get inspired from the quote below, buy more books and bookshelves and prepare myself for the future:
"I would be most content if my children grew up to be the kind of people who think decorating consists mostly of building enough bookshelves." ~Anna Quindlen
The Seattle's popular newspaper, the Seattle Post-Intelligence is ceasing publication starting tomorrow. The paper published its final print and is transforming to an online-only version. Seattle P-I lost $14 million in 2008. The staff is reduced from 165 to 20 and the newspaper is reduced to little of original reporting and more of links to other news sites. It is the first one to go out of print, but surely not the last one. There are many more to follow the same path. The next in line may be our hometown newspaper - The San Francisco Chronicle! It has lost $50 million last year and may loose more this year.
Are the newspapers going out of business due to the current economic downturn? Yes, of course. The recession bug has not left any sector untouched. But maybe this was bound to happen. Maybe it is an evolutionary change. Maybe it is inevitable!
If I see myself, I read news only online. I don't care for paper newspaper. I go to my favorite bookmark news paper sites, read through the headlines and get all the news that I want in an hour or so and I don't even need to bother to recycling the paper. Are there still people who write paper letters and send paper greeting cards? Maybe few, but they are definitely the last few clinging to the old ways. Newspapers are giving way to e-papers, books are giving way to e-books, bookstores are giving way to e-stores and so forth. But is this the case with everyone? Of course not. If you go to your local coffee joint early afternoon, you will find a lot of people, typically from the older generation, reading paper and sipping coffee. Reading newspaper is an enjoyable pass time for them. They love to hold the paper, do the crosswords and cut the coupons.
All said, I still have a fascination for paper books. The same me who detest "paper" newspaper, love to read from a real book instead of an e-version of the same book. Why? Because I develop a special bond with my book. I like to hold it, open it, smell it and read it. It is personal. I agree that it doesn't have the fancy features of an e-version of the book. It doesn't have the much wanted "find" button. But still, e-book lacks the charm that a paper book has. The joy of possessing a good book, arranging it in the bookshelf is never the same as that of having an e-version of it stored in the hard disk.
Maybe there are people who feel the same way for the paper version of newspaper. Maybe they are dreading to live in a world with no real newspaper. So am I, dreading to live in a world void of real books. Maybe I should get inspired from the quote below, buy more books and bookshelves and prepare myself for the future:
"I would be most content if my children grew up to be the kind of people who think decorating consists mostly of building enough bookshelves." ~Anna Quindlen
Tuesday, March 10, 2009
Superbrain Yoga
My friend recently sent me a link to a video about superbrain yoga that was broadcast by the Los Angels CBS2 station. Unbelievable it is!!!
(If you haven't watched it already, please stop and watch it before you read further...)
This was first sited by Master Choa Kok Sui, who is an international lecturer and believes in energy healing and brain techniques to increase intellectual capacity.The neurologists, teachers, doctors and other scientifically grounded individuals are advocating this practice as a way to help super-energize the brain and enhance sharpness and clarity. It is also considered as a possible cure for autism and Alzheimer's.
Wow! Isn't it amazing! The ancient Indian practice has got a fancy name and world-wide publicity! And who has got the credit for it? The Chinese master? Or the oldest living Indian who practices it? Is this technique different from the original one? Of course it is. It is an enhanced version - you can do it in your bedroom or living room, over the yoga mat watching TV. The ancient technique had some loopholes - it can be done only in temples as part of worship or at times when you do some mistake as part of punishment.
Should we Indians care that this technique that has its origin in India is now portrayed as a brain enhancement mantra? We know it is an ancient "Indian practice" and so that is the truth. But what happens years and years later. For example, "who invented zero?". I don't think many would know the fact that it has its origin in ancient India in the 9th century AD. It reached Europe only in 11th century where it was showcased by famous Italian mathematician Fibonacci in European mathematics.
So after 1000s of years from now, our history books may quote that the invention of super power yoga technique changed the world - it got the world out of the greatest recession! Sounds impressive - right?
For people who feel that "I could have published a book on superbrain yoga and could have become famous!".. don't fret, there are yet many ancient Indian practices still waiting to get a face lift. Here is one. The practice of adding "turmeric" in food dates back to ancient times. It is considered as an essential ingredient in most of Indian recipes. Turmeric cures many kind of skin diseases and urinary diseases, kills germs in intestine and curb away the unwanted substances from the food. It is also a proven cure for gas trouble and burning sensation in stomach. Ayurveda reveals that if you prepare a paste of turmeric and consume it regularly, it leaves your body in high spirits. Indian cosmetic industry has already advertised its use in the face creams. But it is still a not-so-famous ingredient in American food and beauty recipe. There is still an opportunity to add turmeric to burgers and pizza, give fancy names to it and advertise its extra-ordinary affects on the human body and claim proprietary rights!
Did you know walking barefoot in rough surface increases the blood circulation of the body and ultimately to a healthy life? Here we go - another Indian practice waiting for a dress-up. Modern medical science hails the arguments in favor of walking barefooted. As one walks along a rough surface, pressure is incurred under the feet directly and stimulate the functioning of the body. The nervous system under the feet that extends from the toe to the heel is directly connected to internal parts of the body such as brain, heart, kidney, liver etc. The stimulation received under the feet enhances the functioning of these parts.
"Nike" and other footwear companies, the time is running up! Before the world starts walking barefoot, come up with a new footwear product that aligns with this ancient Indian concept, patent it, and create a footwear revolution!
My friend recently sent me a link to a video about superbrain yoga that was broadcast by the Los Angels CBS2 station. Unbelievable it is!!!
(If you haven't watched it already, please stop and watch it before you read further...)
This was first sited by Master Choa Kok Sui, who is an international lecturer and believes in energy healing and brain techniques to increase intellectual capacity.The neurologists, teachers, doctors and other scientifically grounded individuals are advocating this practice as a way to help super-energize the brain and enhance sharpness and clarity. It is also considered as a possible cure for autism and Alzheimer's.
Wow! Isn't it amazing! The ancient Indian practice has got a fancy name and world-wide publicity! And who has got the credit for it? The Chinese master? Or the oldest living Indian who practices it? Is this technique different from the original one? Of course it is. It is an enhanced version - you can do it in your bedroom or living room, over the yoga mat watching TV. The ancient technique had some loopholes - it can be done only in temples as part of worship or at times when you do some mistake as part of punishment.
Should we Indians care that this technique that has its origin in India is now portrayed as a brain enhancement mantra? We know it is an ancient "Indian practice" and so that is the truth. But what happens years and years later. For example, "who invented zero?". I don't think many would know the fact that it has its origin in ancient India in the 9th century AD. It reached Europe only in 11th century where it was showcased by famous Italian mathematician Fibonacci in European mathematics.
So after 1000s of years from now, our history books may quote that the invention of super power yoga technique changed the world - it got the world out of the greatest recession! Sounds impressive - right?
For people who feel that "I could have published a book on superbrain yoga and could have become famous!".. don't fret, there are yet many ancient Indian practices still waiting to get a face lift. Here is one. The practice of adding "turmeric" in food dates back to ancient times. It is considered as an essential ingredient in most of Indian recipes. Turmeric cures many kind of skin diseases and urinary diseases, kills germs in intestine and curb away the unwanted substances from the food. It is also a proven cure for gas trouble and burning sensation in stomach. Ayurveda reveals that if you prepare a paste of turmeric and consume it regularly, it leaves your body in high spirits. Indian cosmetic industry has already advertised its use in the face creams. But it is still a not-so-famous ingredient in American food and beauty recipe. There is still an opportunity to add turmeric to burgers and pizza, give fancy names to it and advertise its extra-ordinary affects on the human body and claim proprietary rights!
Did you know walking barefoot in rough surface increases the blood circulation of the body and ultimately to a healthy life? Here we go - another Indian practice waiting for a dress-up. Modern medical science hails the arguments in favor of walking barefooted. As one walks along a rough surface, pressure is incurred under the feet directly and stimulate the functioning of the body. The nervous system under the feet that extends from the toe to the heel is directly connected to internal parts of the body such as brain, heart, kidney, liver etc. The stimulation received under the feet enhances the functioning of these parts.
"Nike" and other footwear companies, the time is running up! Before the world starts walking barefoot, come up with a new footwear product that aligns with this ancient Indian concept, patent it, and create a footwear revolution!
Wednesday, March 4, 2009
Shares up on China stimulus hopes
Recently, the words "recession" and "stimulus package" have become household words. One is bad and the other is good. Suddenly everyone understands the full meaning of these words even if they don't understand the whole economic picture. So the very speculation of Chinese government announcing another stimulus package brought hope and optimism in U.S. market.
China is one of the worlds five biggest growing economy. Chinese economy has still not gotten into the "recession" phase. Its pace has slowed down but still it is expected to meet the economic growth forecast of 8% this year.
However, it is not certain if the Chinese economy can hold on without some help from its government. China's export has collapsed and has dragged the economy to its weakest growth resulting in job loss and social unrest. For so long, America has played an important role in keeping the global economy growing. America's model of buying, using, throwing and buying more has created an environment where there is constant demand for supply. The Asian countries like China and India were producing goods for American market, exporting to America, becoming wealthy and as a result were enjoying a steep economic growth. Now with America suddenly forced not to spend is causing ripple affect in Asian economy.
The question now is: What happens when America stops spending? What happens when people in America start imitating the frugal Asians. Who is going to create a demand for goods? Who is going to buy?
It makes me think that maybe it is time to revisit Mahatma Gandhi's "Swadeshi" policy. "Swadeshi" means "of one's own country". Mahatma Gandhi described it as "Swadeshi is that spirit in us which requires us to serve our immediate neighbors before others, and to use things produced in our neighborhood in preference to those more remote. So doing, we serve humanity to the best of our capacity. We cannot serve humanity by neglecting our neighbors".
Going back to today's economic situation, maybe the Asian countries should balance their economy with exports as well as with serving their own country's market. If they produce what is consumed by their own people, they won't be affected so deeply by economic crisis happening in some other country. This was the case during 1940's great depression in America. The Asians were hardly affected by it. This does not mean that I am against globalization or free trade policy. All I am trying to say is that we need to strike a balance - if the export collapses, the "Swadeshi" demands should keep the economy healthy.
Recently, the words "recession" and "stimulus package" have become household words. One is bad and the other is good. Suddenly everyone understands the full meaning of these words even if they don't understand the whole economic picture. So the very speculation of Chinese government announcing another stimulus package brought hope and optimism in U.S. market.
China is one of the worlds five biggest growing economy. Chinese economy has still not gotten into the "recession" phase. Its pace has slowed down but still it is expected to meet the economic growth forecast of 8% this year.
However, it is not certain if the Chinese economy can hold on without some help from its government. China's export has collapsed and has dragged the economy to its weakest growth resulting in job loss and social unrest. For so long, America has played an important role in keeping the global economy growing. America's model of buying, using, throwing and buying more has created an environment where there is constant demand for supply. The Asian countries like China and India were producing goods for American market, exporting to America, becoming wealthy and as a result were enjoying a steep economic growth. Now with America suddenly forced not to spend is causing ripple affect in Asian economy.
The question now is: What happens when America stops spending? What happens when people in America start imitating the frugal Asians. Who is going to create a demand for goods? Who is going to buy?
It makes me think that maybe it is time to revisit Mahatma Gandhi's "Swadeshi" policy. "Swadeshi" means "of one's own country". Mahatma Gandhi described it as "Swadeshi is that spirit in us which requires us to serve our immediate neighbors before others, and to use things produced in our neighborhood in preference to those more remote. So doing, we serve humanity to the best of our capacity. We cannot serve humanity by neglecting our neighbors".
Going back to today's economic situation, maybe the Asian countries should balance their economy with exports as well as with serving their own country's market. If they produce what is consumed by their own people, they won't be affected so deeply by economic crisis happening in some other country. This was the case during 1940's great depression in America. The Asians were hardly affected by it. This does not mean that I am against globalization or free trade policy. All I am trying to say is that we need to strike a balance - if the export collapses, the "Swadeshi" demands should keep the economy healthy.
Monday, March 2, 2009
Sebelius at HHS
President Obama nonimated the Kansas Governor Kathleen Sebelius to head the Department of Health and Human Services. She is entrusted along with Nancy Ann DeParle, the Presidents choice to lead the White House office of Health Reform to overhaul the current heath care system.
Sebelius has been the governor of Kansas, a republican dominated state since 2003. She has the reputation for reaching across the aisle to work with Democrats and Republicans alike. While her nomination is waiting for Senate confirmation, the anti-abortion groups have started making noises and making their views known. Sebelius is known to favor abortion and therefore disliked by the anti-abortion groups. Her primary concern is towards women's health and welfare. In one of her speeches she said "My Catholic faith teaches me that all life is sacred, and personally I believe abortion is wrong," she said then. "However, I disagree with the suggestion that criminalizing women and their doctors is an effective means of achieving the goal of reducing the number of abortions in our nation."
This started me thinking on the age old controversial subject of "abortion" - the pro-choice vs pro-life debate, the moral and ethical issues that surround them, the political and social factors that shape the "abortion laws". If we go back in history, we can see that this is a debate that started long back. Plato and Aristotle both argued in favor of compulsory abortion under certain circumstances, though Hippocrates expressly disapproved the practice. This is one issue where everyone has an opinion - either they are for it or against it! It is not one of those topics where they say "I don't know or I don't care" - it touches the very basis of human life and therefore they do care. The stand that one takes on this issue depends on one's view on various factors regarding life. What is the origin of human life? When does the zygote/embryo/fetus becomes a "person"? When the fetus have "self-awareness" and "temporal-awareness"? It also depends on one's take on women's right on her body or rather the extension of her rights on her body and on the fetus that is part of her body.
Do I have a view on this subject? Ofcourse I do. What is my stand? Well, I am in favor of "pro-choice"! I am in favor of "abortion" ! But for records, I also want to say that I am "only" in favor of the abortion done during the early term of pregnancy (e.e. within the first 12 weeks) for the obvious reasons.
Yes, it is cruel to kill the fetus in the womb but then it is worse to bring the life into this world and not able to provide the basic needs of the new life. If a wife with her husbands support, or a single mother or an unmarried teen mother decides to go for abortion, then it is because she is not capable of bringing up the baby in the present circumstance in her life. She has one life to live and therefore has every right to choose the way she wants to live it. She has every right to control her present and future life. The responsibility of a mother does not end with giving birth, it just begins then. If she is not in a physical, mental or financial situation to take care of her baby, she has every right to choose not to have the baby. The well-being of the women and the value of her life should be recognized as something that she is entitled to put forth before everything else in life including the fetus that is going to shape into a baby.
President Obama nonimated the Kansas Governor Kathleen Sebelius to head the Department of Health and Human Services. She is entrusted along with Nancy Ann DeParle, the Presidents choice to lead the White House office of Health Reform to overhaul the current heath care system.
Sebelius has been the governor of Kansas, a republican dominated state since 2003. She has the reputation for reaching across the aisle to work with Democrats and Republicans alike. While her nomination is waiting for Senate confirmation, the anti-abortion groups have started making noises and making their views known. Sebelius is known to favor abortion and therefore disliked by the anti-abortion groups. Her primary concern is towards women's health and welfare. In one of her speeches she said "My Catholic faith teaches me that all life is sacred, and personally I believe abortion is wrong," she said then. "However, I disagree with the suggestion that criminalizing women and their doctors is an effective means of achieving the goal of reducing the number of abortions in our nation."
This started me thinking on the age old controversial subject of "abortion" - the pro-choice vs pro-life debate, the moral and ethical issues that surround them, the political and social factors that shape the "abortion laws". If we go back in history, we can see that this is a debate that started long back. Plato and Aristotle both argued in favor of compulsory abortion under certain circumstances, though Hippocrates expressly disapproved the practice. This is one issue where everyone has an opinion - either they are for it or against it! It is not one of those topics where they say "I don't know or I don't care" - it touches the very basis of human life and therefore they do care. The stand that one takes on this issue depends on one's view on various factors regarding life. What is the origin of human life? When does the zygote/embryo/fetus becomes a "person"? When the fetus have "self-awareness" and "temporal-awareness"? It also depends on one's take on women's right on her body or rather the extension of her rights on her body and on the fetus that is part of her body.
Do I have a view on this subject? Ofcourse I do. What is my stand? Well, I am in favor of "pro-choice"! I am in favor of "abortion" ! But for records, I also want to say that I am "only" in favor of the abortion done during the early term of pregnancy (e.e. within the first 12 weeks) for the obvious reasons.
Yes, it is cruel to kill the fetus in the womb but then it is worse to bring the life into this world and not able to provide the basic needs of the new life. If a wife with her husbands support, or a single mother or an unmarried teen mother decides to go for abortion, then it is because she is not capable of bringing up the baby in the present circumstance in her life. She has one life to live and therefore has every right to choose the way she wants to live it. She has every right to control her present and future life. The responsibility of a mother does not end with giving birth, it just begins then. If she is not in a physical, mental or financial situation to take care of her baby, she has every right to choose not to have the baby. The well-being of the women and the value of her life should be recognized as something that she is entitled to put forth before everything else in life including the fetus that is going to shape into a baby.
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