GM Better Figure Out How to Stop Shrinking, I Mean Globally & Pronto, Before It’s Too Late | Wolf Street

GM announced this weekend that it would pull out of Australia, New Zealand, and Thailand, in line with its strategy to exit one market after another to shrink itself to higher profits, which has led to a stupendous downward spiral in vehicle sales.

And so GM’s shrinkage continues. Shrinking yourself out of trouble looks good on paper, and shrinking per se is amazingly easy to do in a competitive world, and is in fact automatic if you’re not up to snuff. But it is fraught with existential risks, including the question: At what point do you stop shrinking before you hit zero?

And as GM is executing its next steps, either by plan or forced by the market, in that relentless shrinking process, it has yet to specify at which point it wants to stop shrinking before its sales hit zero.

via GM Better Figure Out How to Stop Shrinking, I Mean Globally & Pronto, Before It’s Too Late | Wolf Street