GM's (GM) Future May Ride On Two Wheels And Not Four

GM’s (GM) domestic car sales are off almost 50% this year, so selling cars is no longer the company’s strength. Since it is an auto firm, coming up with an alternative business would seem to be impossible, but the No.1 US car company is giving it a stab.

GM and motor scooter company Segway are going to begin to market a two-wheel urban cruiser which may sell well enough to bring GM some meaningful revenue in its home market.

According to the AP, “The companies announced Tuesday that they are working together to develop a two-wheeled, two-seat electric vehicle designed to be a fast, safe, inexpensive and clean alternative to traditional cars and trucks for cities across the world.” The little “cars” will also be able to communicate with one another electronically to prevent traffic tie ups.

Experts and investors have been certain that GM lost its capacity for innovation many years ago and that the firm would eventually destroy itself by its reliance on heavy and large fossil-fuel cars and trucks. The Segway news is an indication that someone at GM is actually looking for a way out of the woods.

For once, something conceived of by GM may work.

Douglas A. McIntyre