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So Goes GM
- Thread starter dividend
- Start date
Quote from Daal:
at least the auto loan lenders dont assume car prices will never go down, some are saying the AAA auto loans AB can handle 20% unemployment, so this burst might not be that bad
20%?? We're at 12-15% right now, I can see the reality in that. Or is that 20% gov't constructed numbers (which in reality brings us to 30% unemployment).
One can defer reality to a grandiose outcome but currencies do not have cognitive dissonance. $3000 cannot buy something that is $30,000. Something significant has to happen to save this sinking ship.
Quote from dividend:
Car & Light truck sales estimated to hit 15 year lows in 08
I no longer see H2s running around.
80 day supply of accords
70 day of tundras
100 day of sequoias
they will have to bring out all the gimmicks like they did in 2001-2002 to sell these
If and when gasoline cracks come back, these machines of mass waste may only be worth their weight in scrap metal.
You couldn't pay me to drive one of these.
The only thing GM has done right recently is the C6 Corvette.
We haven't had the lies and denials and the pumping from the GM management yet. Those have to come out first, and the stock price kept up long enough for as many insider shares to be sold as possible. Then the price can come down. It takes a long time for a company as large as GM to fail. And it is highly likely that they will get a government guarantee for the loans they are going to need to pay their bills. They have, according to Yahoo, and ya'all know how reliable Yahoo is, a current ratio around 0.8. That means they don't have enough liquid assets to pay current obligations. That's usually trouble. If you can't keep the lights on it's hard to do business.
If the US auto companies want to stay in business they need to reinvent themselves. They need to open their eyes up to what the overseas competition is doing. People don't want to pay for a gas guzzling piece of junk that will spend as much time in the shop as on the road and need to hit the junk yard before it hits the 200k mile mark. People have discovered that it IS possible to make a fuel efficient car that can last 500k miles and have very few break downs if properly maintained. The only issue is to get that you have to buy Toyota or Honda.
GM has a good advertising campaign and their style department is way ahead of most, not ahead of Jaguar but very good styling. They have hybrids and electric cars in the lineup and the weak dollar helps their exports. Their drive train engineering department does fantastic things from time to time and consistently too. They could be back strong in a few years. My GM driving experiences are way ahead of any other brand..... they have innovated over the years and probably will continue to do so if the debt and union thingys don't kill them off...