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May 2, 2009

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Total Comments: 14 (view all)

Resurrecting GM is not rocket science. They just have to rethink, retool and reorganize. Simple.

But since they are a prisoner of a culture that no longer plays well, the real solution is to replace the old guys and pretty much start over.

It's not as if people do not need cars or people to service the cars.

Here's how I would do it:

First, GM has to OWN it's own dealerships. That way they can set the price and control inventory much better. Having a host of dealers playing price games, is not good for the company.

They need to focus on competing with the other manufacturers not with themselves. The service component of any dealership is USUALLY extremely proftiable.

Second they need to forget about market segmenting.
There is no need to have a zillion options and such. Make all the cars the same option wise - they all have top of the line options. Then
use that as a value proposition. All they need to do is let people pick the color.

In the days of $2.50 gallon gas, status cars are a dog that does not hunt.

Build hybrid delivery vehicles NOT cars ... they will save companies millions of dollars in fuel costs and that is an incentive to buy the vehicle.

If GM owns it's own dealerships it can take the cost of making the car, add on say $3,000 to that number ... $1,500 goes to the dealer to pay for expenses ... $1,500 is profit per car ... the more cars you sell, the more profit you make. The price is what it is take it or leave it. But at that markup it would be a bargain at all levels.

If a company owned dealer sold 100 cars per month the company would make $150,000 per month profit. If they sold 600 cars they would make $900,000 profit. 2,000 dealers averaging 300 salec per month
would generate $450,000 times 2,000 equals $90 million per month profit.

On the expense side, NO ONE in the company should make more than the highest paid UAW worker on an hourly or salary basis. If the company makes a profit, then EVERYONE gets a performance bonus.

Now engineers and executives will scream and yell, but who needs them ... they do not build the cars,
nor do they sell the cars. You can alway contract out the design for less than you can develop it in house.

And so on.

(Suggest removal) 6/2/09 at 6:47 a.m.

No problem here with privatizing electrical generation. But the grid then becomes a problem.
It has to be a 'commons' for any privatization to work.

The one thing that never seems to be brought up is that you need to make the 'alternative' energy components from existing energy and natural resources. Delaying the inevitable will just mean they will cost more down the road.

As for geothermal ... each well has a limited amount of energy it can produce. Geothermal works,
we need more of it.

As for subsidizing alternatives, if you took away all the subsidies for coal and oil, the price of electricity would be at least 300% and maybe even more higher.

People need to understand the idea of EXTERNALITY which is always swept under the rug when you start to talk to economists and so-called business people.

(Suggest removal) 5/27/09 at 5:27 p.m.

The problem with Nevada and alternative energy begins and ends with NV Energy. Until they are willing to pay a fair price per kilowatt hour to independent power producers, the economy of Nevada will wallow in the dust and the journey of Nevada to become Darfur West will continue.

One of the problems that will soon be upon us here in Nevada, is when the water level at Lake Mead evaporates down below the intakes to the dam. It has about 15 feet to go. There will be a huge drop in electricity available.

So how will we all get our water delivered, since the it takes some serious electrical usage to pump it to everyone connected to the water system?

There is NO backup system. But hey, as NV Energy says: "NOT OUR PROBLEM."

NV Energy needs to be "Nationalized" by the state.
And not because it's a good thing to nationalize any business. But because, their corporate officers are so insane, they want to turn Nevada into a giant dust bowl, rather than do a bit of restructuring and changing the old boy way of doing things.

There is not much time until Nevada runs out of electricity.

(Suggest removal) 5/26/09 at 12:01 p.m.

The whole issue is just a smoke screen. It's irrelevant. The Republicans do not want to be forced to cast a veto over riding vote.

The whole issue could be easily resolved in the 2011 legistlative session. There surely needs to be some serious legal work done before they do anything. Existing programs are all based on contracts already in place. Since there is a big
freeze on new hires ... who cares what happens to new hires until the freeze is lifted.

I swear the number one trait of EVERY elected official in Carson City is STUPIDITY.

(Suggest removal) 5/22/09 at 9:11 a.m.

Until the morons in Carson City realize that the TAX PROBLEM is a two sided coin, the only hope for Nevada and her citizens is to be consigned to living in a third world polity and get poorer every year.

You need to know how much you are going to collect (within reason) from all sources. Then when you have that number, you determine how to spend it on who, what, when and where.

It's a real simple problem to solve:

You institute a 3% GROSS REVENUE tax on ALL Corporations doing business in Nevada ... you exempt the first $60K. To make it fair, you lower the gaming tax to 3% ... Gaming would still pay the 3% on top of the gaming tax.

No write-offs, no deductions of any kind. If Corporations don't like it, they can move to California.

Now you have a reasonably fixed revenue source. It msy flutuate some, but considering there is NO Personal income tax - people will still have an incentive to reside here, provided there are jobs, at least average healthcare facilities, and such.

It should not be the any Governments job to insure than any corporation or business makes a profit or operates at a loss. That's a management function.

Once you have secured the revenue source, then you can determine what you have to spend.

But politicians being politicians, we need to put a spending cap limit in place. Somthing like spending can't increase more than 2% per bienimum over the preceeding budget.

A 3% Gross revenue tax on corporations doin business in Nevada should bring in a surplus, at least in the first two years. Any surplus should be invested half in a rainy day fund and half in development thru block grants to each county on a
reasonably equitable basis.

Since there are 17 counties ... we divide the gross block grant into 20 units. Clark And Washo get 2 units, the other 15 counties each get one unit. The remaining unit is for oversight and monitoring how the money is spend ... It should only be allowed to be spent on hard assets such as roads or buildings or parks or capital equipment.

If there is a problem raise the 3% to 4% and have it sunset at the end of the next budget session and revert to the 3%.

Sales tax should be no more than 5% ... 3% to the counties ... 1% to education and 1% specifically set aside to fun healthcare on a state wide basis.

Property taxes should be limited to 1% of the purchase price of the property maximum or $120 whichever is greater.

Vehicle registration should be a flat $90 for all non-commercial vehicles and $120 for all commercial vehicles.

Use taxes can stay where they are and folded into the gross state revenue from which the elected officials can divy it up as they see fit within the budget limitations.

It's really not rocket science.

(Suggest removal) 5/22/09 at 8:59 a.m.

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