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Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
3958 messages, Last post on Oct 02, 2009 at 4:52 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: kernick (Dec 02, 2008 9:47 am)
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Replying to: kdhspyder (Dec 02, 2008 7:44 am) No, YOUR lack of knowledge of lemko is showing. He's being faceitious |
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Replying to: kernick (Dec 02, 2008 9:47 am) |
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Replying to: dave8697 (Dec 02, 2008 1:46 pm)
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Replying to: mpoisson1 (Dec 02, 2008 2:04 pm)
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Replying to: chikoo (Dec 02, 2008 2:08 pm) I don't know. Ford looks like they have a plan. GM's looks an awfully lot like the SNL skit.
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Replying to: fezo (Dec 02, 2008 2:28 pm) I read that plan also. Unless some serious concessions come from the executives and the UAW, it look like business as usual. What happens if they don't get $4 billion this month. I say no loans for GM. If Ford wants a credit line to fall back on that would be good. GM is toast. I just do not believe the doom scenario being shoved down our throats. How does less than 96,000 GM employees losing their jobs balloon to 3 million?
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Replying to: gagrice (Dec 02, 2008 4:04 pm)
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Replying to: joel0622 (Dec 02, 2008 1:41 pm) Why GM's Plan Won't Work ...and the ugly road ahead May 2005 And make no mistake, GM is in a horrible bind. That $1.1 billion loss in the first quarter doesn't begin to tell the whole story. The carmaker is saddled with a $1,600-per-vehicle handicap in so-called legacy costs, mostly retiree health and pension benefits. Any day now, GM is likely to get slapped with a junk-bond rating. GM has lost a breathtaking 74% of its market value -- some $43 billion -- since spring of 2000, giving it a valuation of $15 billion. What really scares investors is that GM keeps losing ground in its core business of selling cars. Underinvestment has left it struggling to catch up in technology and design. Sales fell 5.2% on GM's home turf last quarter as Toyota Motor Corp. (TM ), Nissan Motor Co. (NSANY ), and other more nimble competitors ate GM's lunch. Last month, CEO G. Richard "Rick" Wagoner Jr. and his team gave up even guessing where they'll stand financially at the end of this year. Worst of all, GM reached a watershed in its four-decade decline in market share. After losing two percentage points of share over the past year to log in at 25.6%, GM has reached the point at which it actually consumes more cash than it brings in making cars, for the first time since the early '90s. GM, once the world's premier auto maker, is now cash-flow-negative. That's a game changer. Without growth, GM's strategy of simply trying to keep its factories humming and squeaking by until its legacy costs start to diminish is no longer tenable. If market share continues to slip, its losses will rapidly balloon. http://www.businessweek.com/magazine/content/05_19/b3932001_mz001.htm
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Replying to: joel0622 (Dec 02, 2008 4:07 pm)
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