Will GM Go Out Of Business?

[lleeder]

The stock hit the all time low of $1.55 a share yesterday and closed at $1.77 a share. The last time it was that price was 1934.

[lleeder]

I'd love to buy some stock and cash out in the future with Mr.Monopoly type bags of cash. Will this work or will I end up poorer after the stock continues to plummet.

[instrument]

You think they might? Maybe the government should consider loaning them some money or something.................... Or maybe shut down some of their non lucrative brands (pontiac/saturn)

Someday...........

[Gvac]

With the bailout and reorganization coming you might see a temporary jump, but until the overall economy turns around I don't see them coming anywhere near their former glory.

With Chevy, GMC, Cadillac, Pontiac, Buick, Saturn, HUMMER, and Saab they've just got way too many brands out there. The decision to stop leasing vehicles has also taken its toll.

[lleeder]

With the bailout and reorganization coming you might see a temporary jump, but until the overall economy turns around I don't see them coming anywhere near their former glory.

With Chevy, GMC, Cadillac, Pontiac, Buick, Saturn, HUMMER, and Saab they've just got way too many brands out there. The decision to stop leasing vehicles has also taken its toll.

Way to ruin my dreams.

http://i434.photobucket.com/albums/qq70/mymoney26/bag_of_money.png

[TheMojoPin]

You'd end up eating your dog.

[underdog]

No.

[instrument]

Saab and opel are next.
I have no idea why gm felt the need to own all of these companies.

Does gm own volvo too? I think they owned rolls royce at one point too right?

Dumbasses

[GregoryJoseph]

Does gm own volvo too?

No, Ford does. They'd better pare down too. Word is that they'll be dumping the Mercury brand by 2012.

[Tenbatsuzen]

No, Ford does. They'd better pare down too. Word is that they'll be dumping the Mercury brand by 2012.

If Ford wants to reorganize properly, one of the things they need to do is STOP ALL THE SUV's.

There is no reason to have the Escape, the Edge, the Explorer, the Expedition, the Flex, and the Taurus-X. Not to mention the Sport-Trac.

[cougarjake13]

out of business ?? no


but whoever owns them now, may not soon


someone else will buy them and hopefully streamline things and ultimately run things better

[STC-Dub]

GM should make it, not so sure about Chrysler though.

[NewYorkDragons80]

I'd love to buy some stock and cash out in the future with Mr.Monopoly type bags of cash. Will this work or will I end up poorer after the stock continues to plummet.

That's what I did when I bought 900 shares of Sirius at $.15 a share. I seriously considered doing the same with GM stock, but now I'm glad I didn't. As bad as things look for GM right now, I just can't see them going under. Not this company, not with this administration. I think Chevy is rolling out some cars that people are excited about the way they haven't been for an American company for quite some time. They're gonna sell off Saturn and some other assets, which will hurt those brands in the short term, but help GM in the long run become a leaner company. I wouldn't go in big, but now is not a bad time to go in if you have money you don't mind losing. Again, I don't see how this administration and this congress would let GM go under. Clearly, a change in leadership is in order, though.

[K.C.]

Well, GM is looking pretty grim....Chrysler is just fucked.

I'd say there's a good chance GM goes to bankruptcy, or gets temporarily nationalized, either of which, would wipe out the shareholders. It's getting pretty difficult to foresee HOW they could bounce back. There really is no road map to success there.

If you're looking to take a shot, Ford is actually in decent shape (relatively speaking) and the stock price is only $1.80.

They are showing some signs of having reached their bottom, they've got some decent models coming out, and they've slowly started to get their books in order.

Of course, there's two potentially huge risks; the first is whether they can weather the job loss of the rest of this year in regards to selling cars; their numbers today were pretty bad (close to a 50% loss in sales), but they'll adjust production to match the market.

The second, is the potential threat of an all encompassing auto nationalization, where the big three are united under one banner. At the rate GM and Chrysler are going, nothing is impossible there.


That said, I kind of think Ford makes it through in decent shape.

GM barely survives, and only because of increased government influence.

Adios, Chrysler.

[Syd]

Ford is in worse shape than GM, they just have a bigger cash reserve because they were banking on an eventual bailout.

GM's path to success was in place until the finance markets exploded. Now they're kind of fucked because of how much money they spent to get back to being competitive.

[K.C.]

Ford is in worse shape than GM, they just have a bigger cash reserve because they were banking on an eventual bailout.

GM's path to success was in place until the finance markets exploded. Now they're kind of fucked because of how much money they spent to get back to being competitive.

Ford's got the better models going forward, though. And at the end of the day, these companies are going to have to sell cars.

The Fusion, the Taurus Sedan, the Transit Connect all role out this year...you still have the Focus.

Plus they've done a better job renegotiating their contracts.

[Syd]

Ford is still rolling 10 year old chassis off their lines, GM has re-tooled for their new cars. When Ford has to begin re-tooling (next 2 years or less for virtually all models) you'll see them asking for money, if not sooner.

[boosterp]

If I am not mistaken Ford is the only one that did not take bailout money because of the strings attached. They were already working on their overall financial picture when their stock tanked a year ago. Ford still has a chance, a bit more of one than GM under tighter government restrictions.

[Recyclerz]

Ford is in better financial shape because their new CEO had the foresight to borrow as much money as he could in 2007 and early 2008 before the financial crisis hit and when interest rates were relatively low. If the sales don't start picking up by next year all the car companies will be fucked, including the Japanese, Koreans and Germans.

[ToiletCrusher]

Let's hope that the Chinese buy GM.

[Recyclerz]

Megan McArdle: GM is toast. (http://meganmcardle.theatlantic.com/archives/2009/03/gm_is_toast.php)

An opinion from a pretty good (if slightly right-leaning) economics/business blogger that says it's when, not if, GM declares bankruptcy.

:sad:

[Coach]

Wait isn't Ford buying up GMC stock??

[boosterp]

If Ford wants to reorganize properly, one of the things they need to do is STOP ALL THE SUV's.

There is no reason to have the Escape, the Edge, the Explorer, the Expedition, the Flex, and the Taurus-X. Not to mention the Sport-Trac.

Which are still vehicles that sell well down here, well most. I need to find the regional sales chart thing I googled not long ago.

Syd: Ford is still rolling 10 year old chassis off their lines, GM has re-tooled for their new cars. When Ford has to begin re-tooling (next 2 years or less for virtually all models) you'll see them asking for money, if not sooner.

Actually from the F 150 to the Focus these are new chassis. The current Focus is 5 yrs old I think and the F 150 was redone again from 2004 last year. The only models that I have read about not changing in recent years is the Taurus which is also the same that the Jaguar S Type uses, their van chassis, and their 3/4 and 1 ton trucks. Even the Explorer was redone when the Sport Trac came out, I think 5 yrs ago.

[lleeder]

Will they?

[K.C.]

I've made a 50% profit on the Ford stock I bought a month ago.

I'm thinking of cashing out and calling it a day.