On the first day of this year’s Reuters Manufacturing and Transportation Summit, one of the guests told us of the Chinese theory of the word “crisis” — the symbols for which are a combination of “problem” and “opportunity”.
Now comes the waiting, which, as Tom Petty can tell you, is the hardest part.
Now that General Motors Corp and Chrysler LLC have filed their plans of reorganization to the U.S. government and have started what looks like a long and not-painless process to make themselves smaller, more profitable and better suited to the current U.S. demand for new cars.
We generally don’t go for the all-CAPS version of words, but in this case, it seemed appropriate. Every day we’re seeing new multibillion-dollar programs being rolled out of Washington, D.C. for everything from bank bailouts to auto companies programs.
Instead, for the U.S. government and the many companies that provide its weapons and defense systems, the time is coming to start deciding on priorities and coming to grips with how to finance all of the things that need to be done.
Executives at this year’s Reuters Aerospace and Defense Summit almost uniformely said that finding critical, and rather immediate, value in mergers and acquisitions was especially important now in a climate of less money available for financing.