While I’m generally against big asset sales, especially when the only motive is to gather cash, this article and its analysis of every aspect of the sale of GE’s jet-leasing business to Apolo convinced me that we should look at this sale as a positive thing, and not just in terms of gathering cash ( even though $40 billion is a lot of money), but also in terms of shrinking GE Capital in order to reduce leverage.
https://seekingalpha.com/article/4231717-general-electric-view-gecas-news?page=2
“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.” - W.B.
Best practices, lean, 6S, teaming??? These are the problems not the strong points of running a shop. They are largely used by empty suits who don't know beans about manufacturing but love to use big words and falsified/misleading charts to hide their inexperience. Yes I am certified in lean and 6s but it is worse than worthless. Give me hands on experience any day.
Sell the loss makers at a loss. Keep the profitable companies. Ditch the industrial only strategy.
Why be stuck in past; Think no more GE. It is being broken into its pieces and this is a piece, it is not about raising cash to save GE. Each of the broken off companies will work on its own; everything will still be done. Just by smaller hopefully more efficient companies. Workers at the smaller companies may be better off. Giant conglomerates don't work well today. The return of cash to the guys doing the breaking up is a key factor as to how it goes - they are greedy and it is them first, everyone else 2nd. If they figure out how to get paid a lot of $$ to sell GECAS, they will be very interested in that deal.
There is no good reason for GE to last forever.
Although I am not a big fan of JW, one thing he said about shareholder value is that it is a result, not a strategy. Our main constituencies are our employees, our customers, and our products. This is true. However, IMO, GE seems to be dumping the profitable and successful divisions for the sake of shareholder strategy. It is not holding on to these business's to build them up and feed off the profits. Has GE lost confidence in its leadership? Lost confidence in its business principles of Lean, Best Practices, Six Sigma, Teaming, etc.? Can’t we attract and retain the best employees possible anymore? Are our customers losing faith in our production, quality, and delivery? Are we downsizing to better manage and increase profits or because we are afraid of falling farther behind through lack of confidence in ourselves? We have to build our core structure of employees, managers, customers, and our products. The shareholder value will follow.
$40B is book value. These are smart vultures.
But they ARE desperate for cash.
Are you a f__CKING id--t ? who is running this company? Do you have any clue what money this company generates for GE and Aviation? GE aviation benefits from two engine sales per plane leased plus all the spare parts down the road. How many leased planes have required GE engines on them ..ah ..all of them. If they sell this division of GECAS, they deserve to close the doors completely at GE. This is the reason id--ts from wall street should not be on the board and benefit from a making decisions at GE. What is motivating CULP ? His stock payout ? If they sell this division they must be really desperate for money or corporate greed to dictating the short term decisions.