Tuesday, June 2, 2009

Everyone's talking about GM...

...and I'm sure volumes will be written on the subject. Although I know next to nothing about the auto industry, ignorance has never prevented me from having an opinion before. And one of the things that struck me was that as recently as the early 1960s, GM had a 52% share of the domestic market. The question I would ask is, how realistic is it to think that GM or anyone else could maintain that kind of dominance indefinitely? Isn't it almost inevitable that competitors would chip away at that? Especially something as lucrative as the U. S. auto market?

Yesterday it was announced that GM and Citi would be replaced in the Dow Jones Industrial Average by Cisco Systems and Travelers. Only GE survives from the original Dow Dozen compiled back in 1896. Maybe that's what people should be talking about.

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