GM has to move the metal to keep the cash flowing:

http://www.forbes.com/home/free_forb.../1017/110.html

 

I've been saying for months that GM's real short-term game plan is to outrun their bondholders. Seems to be working so far, but doesn't address the fundamental problems.

 

GM is relying on Big SUVs to save them. There profit on these is pretty substantial. They have a whole new line coming out soon. With an abundance off used SUVs on the market an prices dropping dramitically evry week. How will they be able to sell new ones. If GMs big SUVs do not sell it could very well be the end off them. Ford as well. The only thing saving them right now is great truck sales numbers. If the trucks drop dramtically in sales the next year or two. It will be over an out for any off the Big 3. The money makers are truck an SUVs not cars .Well it looks like gas prices are hurting our pocket books as well as the auto makers

 

I'll agree- except for the part about that being the end of them. The third largest mortgage originator in the US isn't going down unless Greenspan sez it's OK. GM has issues, but some of them are a lot larger than just the car biz side of the equation.

 

Yup your right. If Ford or GM would be no more which will not happen. The financial blow to the country would be terrible I hope it wont come to that. We need 40 MPG trucks an SUVs. With all our technology around this can be done the sooner the better.

 

Well, GM seems to be pushing 6.2L VVT pushord gassers, which is fine and their call, but even as I am tempted to find a decently used diesel Crew Cab HD-caliber truck, I find it hard to pass on the 25+mpg I get from the Ranger for a big diesel truck that gets mid teens average to maybe 20mpg on the highway. If someone wants to convince me that all the current HD trucks get over 20mpg average (good luck, you can't), well I walk past a few of my friend's HD trucks that get 18 tops, if that much.

Anyway, GM is still pulling the 70s act again by selling stuff people don't want! Their hybrid idea is a joke with the trucks, so far, and if my physical view of things is any indication....I saw lots of diesel left at gas stations went I skipped town before Rita came near. I would like to get the same mileage that my truck gets without going back to what I have seen on Google about converting a gasser to diesel. Yeah, something with an I4 or I5 diesel from the factory would be nice about now. Ford seemed to listen to someone (nah, couldn't be me...) and put the 2.3L back in SuperCab Rangers for 2006.

Since there are 2 airlines in bankruptcy with little to zero hopes of a bailout, maybe GM would best be served likewise if they don't evolve. Someone will fill the void and buy up those plants.

 

The government stepped in and saved both Chrysler (with loan guarantees) and Harley (remember the excise tax on large bikes in the 80s (Harley tax?) and they won't let GM or Ford sink either.

 

the fundamental problem is that we are like GM and GM is like us. We are like Ford and Ford is like us.

Americans in general can't waite to spend money. So the same is true with the people that design build and market these vehicles. They are not looking at what we need, they are looking at what we want. Let's face it, if there is a bigger anything, we have to have it. Our egos are huge. If we get the bigger and find out that we don't really need it, then that is an excuse to get something else to fill it.

EX: my dad had a 1500 truck. did it serve the purpose? yes....would another 1500 truck serve him now? yes....did he get a 1500 no...was the 2500 good enough? no so he ends up with a 2500hd with a dmax allison. does he like it? yes could he get by with a lot less? yes

then he goes and puts a 165 hp chip in it to give it more power that he didn't NEED to begin with.

not that i am putting down my dad, but we like to be looked up to as americans. the only reason that he can actually justify the truck is that it has a diesel that is almost twice as efficient on fuel as the old 1500 doing the same job. but he is paying for it upfront in the cost of the vehicle.

what he really needed was a 1500 with a diesel but who would ever build one of those. that would be too ideal and gm/ford all know that.

 

GM really had something going with the 1500s and Blazers with the 6.2 diesel. Unfortunately, the 6.2 sucked and didn't fare too well. However, the General did offer the 6.5 and 6.5 Turbo in their half tons until mid-98.

Cody

 

Isuzu is getting its little deisels prepped for the US market right now. They have a 3.5L V-6 That is slated to go into 1500 Silverados and a 1.6L that is slated to go into Cobalts. Whith Isuzu know how as far as Deisles goes International and Ford will have thier hands full.

 

GMAC will be spun off into a seperate company. As GM's debt rating slides further down the scale it will begin eating into GMAC's ability to borrow "cheap" money for underwriting loans.

As far as the government stepping in, GM is going the way of Rover in England, and eventually no one will be able to make a case to keep them around. We're in a mini gas crisis and all GM is concerned about is introducing oversized OVERPRICED SUV's. At the rate we're going the so called "foreign" automakers are going to employ more Americans than the Big Two because of poor leadership and outsourcing.

 

too add to thier problems delphi has gone into chapter 11 now they have the healthcare and retirement costs of all of delphi's workers to deal with. maybee we will see bmw/gm ag in the future or volkswagen/gm ag maybee honda/gm

 

Huh???

OK- one step at a time.

First- look at some numbers. GM sold 9 million cars and trucks last year, plus their other non-automotive corporate activities. We're not talking Rover here- we're talking the largest manufacturer of cars and trucks on the planet (I know, I know- Toyota will pass 'em eventually- but right now it stands). Total revenue last year was $193 Billion dollars. GMAC alone hold trillions of dollars in paper. Over 300,000 employees, about as many retirees, probably another couple million folks that depend directly or indirectly on GM for their living. It's a huge problem- but you're dreaming if you think they're 1) going away or 2) won't have multiple arms of the government involved to make sure they stay around.

 

GMAC is going to be spun off.

GM's early October sales are down 57% (source: Detroit Free Press)

December 16 Delphi is back in court to get the UAW contracts voided. Angry Delphi workers strike and the General is torpedoed. I know there's a plant here in Flint, MI that's ready to walk right now.

GM is not going away because Kerkorian holds 10% and is waiting for the approaching Labor tsunami to beat the price down a little further before getting a controlling interest.

As far as the government getting involved, they better stay out until GM gets their labor costs under control, say after a Chapter 11 of their own.

 

Kerkorians big- but I don't think he's big enough to get controlling interest. He tried that before with Chrysler, remember?

Spinning off GMAC. Easier said than done- there isn't a bank on the planet big enough to absorb that kind of purchase- it's been discussed at length in a number of investment circles. Maybe they could merge with Fannie May or Freddie Mac?

And you know there's no way the government won't get involved.