Interesting article on GM's financial situation
#16
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Topic is about financial viability, not a review of their products.
GM needs winners no doubt,but a lot of their current products aren't new platforms, just better execution of "old metal" as stated in the article. Financially, I think it is responsible to squeeze as much life out of them as possible. But, the competitors are not resting on their laurels either. Has GM really learned its lesson or not and can they survive for the long term?
GM needs winners no doubt,but a lot of their current products aren't new platforms, just better execution of "old metal" as stated in the article. Financially, I think it is responsible to squeeze as much life out of them as possible. But, the competitors are not resting on their laurels either. Has GM really learned its lesson or not and can they survive for the long term?
#17
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True, but we're not entirely off-topic. An auto company's financial-viability is often determined by how well the public perceives ther products, and how willing they are to buy them. After all, GM got themselves into the bankrupcy mess they were in by years of bad management and producing poorly-made, unreliable products. Now, the key to them getting back on their feet again is (mostly) going to be in their products.
Yes and no. Platform-sharing at GM, of course, is certainly not new, and still exists to some extent. But the corporation has clearly learned from its past mistakes, and today's "platform-sharing" is a LONG way from the old simple, cookie-cutter rebadgings of the past.
Agreed. In the last few years, we have also seen vast improvements in the way Chrysler/Dodge/Jeep designs and builds their products....but, like the new GM products, these new Chrysler products are still unproven in long-term reliability.
GM needs winners no doubt,but a lot of their current products aren't new platforms, just better execution of "old metal" as stated in the article.
But, the competitors are not resting on their laurels either.
#18
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GM has learned to use bankrupcy or bailout reorganization to full advantage over the course of it's history. The point of this article is not about what was part of the past process, but what is happening now. The truck division issues are outlined in 2 of the issues stated in the article.
The key question: Is GM just using public money (ie. your money) as cheap financing that can be defaulted on in the next bankrupcy or is it truly inept in managing it's business?
The key question: Is GM just using public money (ie. your money) as cheap financing that can be defaulted on in the next bankrupcy or is it truly inept in managing it's business?
I do like the Corvette, Suburban and the CTS line. Yes GM needs to build consistantly good products to bring and keep loyal customers. We'll have to see how this plays out.
#19
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It seems GM will buy back some of the stocks owned by the US Treasury, at a loss to the tax payers:
GM feels the "deal is attractive to the company, good for business and good for selling more cars" according to Dan Amman, their chief of finance. Go figure, the public purse takes a bath, no wonder it is good for them.
Once GM's buyback is complete, the Treasury will have recovered about $28.7 billion of the $50 billion it invested in GM. Based on current share prices, it is unlikely to recover its full investment after it sells the rest of its shares.
The Treasury had been reluctant to sell its 500 million shares because it needed the stock to hit $52.39 for the government to break even. Now it must sell its remaining shares at $69.72 to hit the break-even mark. The Treasury had the chance to exit GM in November 2010 when the auto maker's initial public offering priced the stock at $33, but it never made the move to sell.
http://online.wsj.com/article/SB1000...250022486.html
The Treasury had been reluctant to sell its 500 million shares because it needed the stock to hit $52.39 for the government to break even. Now it must sell its remaining shares at $69.72 to hit the break-even mark. The Treasury had the chance to exit GM in November 2010 when the auto maker's initial public offering priced the stock at $33, but it never made the move to sell.
http://online.wsj.com/article/SB1000...250022486.html
Last edited by My0gr81; 12-19-12 at 09:12 AM. Reason: spelling error in title
#20
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better the govt gets out now.
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