End of an era?

The GM and Chrysler bailout funding drama just does not seem to end. Both sides have their points. But that the Christmas vacations may never end in these two companies is definitely a possible situation. Read this article:
http://www.nytimes.com/2008/12/15/business/15costs.html?fta=y
It is a common academic statement that rarely have companies survived by cutting costs. Yet, it seems sad that such huge multi billion dollar enterprises have to stoop to a level of monitoring all purchases of over $10,000. Everything in the press is about how these and other auto companies are acting to reduce costs. Nothing is about new strategies on how to earn more money. If saving costs is a prime requirement, pensions - they are said to be as much as $1500 per car for GM, could be first reworked. Better deals with hospitals could be worked out, lower insurance premiums negotiated. A 10% savings here would be a lot higher than the savings from saving a few sheets of paper or electricity.

That sales will fall is an accepted fact. Earning more money means increasing margins. It also could mean doing something else with the spare capacity / resources. Auto companies could think of a business where they refurbish old cars. People still would need to move and cheaper used cars (that are refurbished by the original company) could be a good business.

The companies need to do something positive and not merely cut costs. I am sure there would be a way. If nothing is possible maybe they could prepare for a grand end that has a minimal impact. All said, with the current spree of cost cutting and waiting for the 'bridge' loan seems to be a stop gap measures. The sales are going to continue to fall and a new loan would again be required in due time. All the Best Gm and Chrysler.