2 Companies, 2 Stories, 1 Opportunity
October 23, 2006
Ford had a bad day, announcing their worst loss in 10+ years. GM had a good day, as their stock hit a 52-week high.
Ford’s losses are bad news for a bunch of obvious reasons. What’s the worst? I think it’s the fact that after all of these plants close/move and people take their buyouts, there will be a tremendous influx of similarly qualified individuals all competing for jobs in the Detroit area that is already strapped for jobs to begin with.
Conversely, GM’s seemingly promising performance may mean that it’s not quite time to turn the lights off domestic car companies. The problem is, these companies will not be able to cut their way to profitability, and right now it seems like that’s mostly what they are trying to do.
There is a tremendous opportunity for individuals that will be taking buyouts or victims of plant closures/movements to begin to create their own businesses to service the needs of their peers (e.g. health services, technology training, etc.).
Perhaps the governor or the mayor could provide special tax credits/incentives for these individuals?
Categories
Automotive
Ford
GM
Entrepreneurship
Taxes
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