As GM goes, so goes the nation (#23; Topic B)

When I began graduate studies at the Wharton School of the University of Pennsylvania, back in 1949, a course on Industrial Management I took had a couple of sessions on the steel industry. US Steel, the dominant player, had a Basing-Point Pricing -- all steel prices were to be set at FOB Pittsburgh, where US Steel had and still has its flagship plant, regardless of the producer or the actual delivery point. And there was a saying: As USS goes, so goes the nation. Later, General Motors took over, and the saying became: As GM goes, so goes the nation. After I had earned a PhD and worked for two or three years, I saved enough to buy my very first car, a brand-new 1956 Chevrolet Bel-Air. Later, I had an Oldsmobile station wagon; and, still later, an Oldsmobile F85 -- all GM products. This week, the Detroit Auto Show began its run, but the news were not favorable to GM. First, there was the speculation that GM might seek bankruptcy protection. Then, it was predicted that, for 2006, Honda would replace GM as the world's most popular automobile producer. Further, GM's stock was at a four-year low, and there was some concern that its dividend might be cut. Let's hope that the company can survive and return to prosperity -- after all, "As GM goes, so goes the nation."
Posted at 11:50 pm, Wednesday, January 11, 2006