General Motors (NYSE:GM) plans to expand new online shopping tools enabling customers to bypass showrooms. GM went bankrupt once because it was an inefficient olde dinosaur. GM and the car business were propped up because Obama was terrified of what the economic impact of creative destruction would bring.
The world is going on-line for everything. Olde school car dealers who are hiding behind state franchise legislation want to kill this on-line. They want olde-school pedestrian traffic kicking tires.
If the dealer culture prevails and GM can’t get traction on-line someone else more nimble will. GM will watch as someone else eats their lunch again. This time Uncle Sam will not want to save the company. Chairman Mao will probably do it for America.
This is tomorrows crisis planting todays seeds of destruction. If the dealers succeed in blocking or delaying the on-line moves they will become a powerful cancer within the GM body-corporate.
George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti