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Justin Hibbard
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October 17, 2005

More pressure on conglomerates

Steve Rosenbush

A few weeks ago, I reported that the conglomerate model is fading fast. Companies such as Time Warner, Tyco, and maybe even GE will be under increasing pressure to become more tightly focused. Now auto giant GM says it is exploring whether it should sell at least part of its GMAC finance unit to a strategic partner. The profitable finance unit would help GM raise cash. And it would help the company focus on its core business, which faces plenty of problems in a competitive market roiled by rising gasoline prices. Does GM really need to devote management attention to making residential mortgages? Seems like management's time would be better spent focusing on getting alternative-powered vehicles to market at a faster pace.

11:01 AM


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