The Homa Files

Jagdish Sheth, a professor of marketing at Emory University’s Goizueta Business School says:

“The car companies should legally separate their international divisions from their domestic operations, so they no longer subsidize the U.S. operations. Many of the automakers are actually doing well overseas, especially in emerging economies like China, India, Russia and Brazil, where demand for vehicles is still relatively strong”.

Excerpted from Knowledge @ Emory
http://knowledge.emory.edu/article.cfm?articleid=1201

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Ken’s Take

Sheth may be onto something. So, why not take his idea a step further? 

Perhaps the Detroiters (at least Ford & GM) should legally separate the international operations, then enter bankruptcy proceedings in the U.S.  Then, either a real restructuring would happen, or the companies would become profitable entities without a U.S. presence.

Aren’t corporate strategists taught to exit unprofitable markets? 

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This entry was posted on December 15, 2008 at 7:45 am and is filed under Autos - Travel. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.