GM Stock death spiral

[Fritzo]

It's at 7.01 right now...if it goes below 7, I think that will be lower than when the company first went public---which was some years before Dwight D. Eisenhower was president.

I've only got like 20 shares, so no big deal, but it's interesting to watch history unfold on my desktop ticker

 

[Pepsei]

should i buy 20 shares?

i still need to fill out the 'outside brokerage approval form' so i can see if i can buy stocks.... been meaning to do tht....

 

[Corporate Thug]

I guess that's what happens when you make crappy cars.

 

[Eli]

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

/lawnchair
/beer

 

[isekii]

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Round 1 Fight!

 

[IEC]

Originally posted by: isekii

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Round 1 Fight!

Round 1? It was over before it started.

/ducks

 

[BUTCH1]

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

The cars are fairly decent nowadays, it's the attention to trucks and SUV's while they let new car design slack for years hurt them a lot. Not to mention the amount it costs them in UAW health benefits from former/present workers, around $1800 per car..

 

[ElFenix]

Originally posted by: BUTCH1

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

The cars are fairly decent nowadays, it's the attention to trucks and SUV's while they let new car design slack for years hurt them a lot. Not to mention the amount it costs them in UAW health benefits from former/present workers, around $1800 per car..

i think the last labor contract lowered that a lot. GM funded some fund for UAW to manage.

it was ridiculous back when GM was the largest purchaser of viagra in the world

 

[AccruedExpenditure]

Originally posted by: Fritzo
It's at 7.01 right now...if it goes below 7, I think that will be lower than when the company first went public---which was some years before Dwight D. Eisenhower was president.

I've only got like 20 shares, so no big deal, but it's interesting to watch history unfold on my desktop ticker

Dividends + Stock Splits + Inflation say no
-AE

 

[FeuerFrei]

Maybe GM can afford to buy back some of their stock now.

 

[Fritzo]

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Nothing to do with their build quality, it was their poor decisions in the early 2000's. It's actually a good lesson in greed and poor leadership.

Around 2000, Toyota and Honda were switching to eco friendly cars because they had foreseen high gas prices (they have The Force or something). GM decided to run the SUV train to death...until it was too late to stop the train from going off the cliff.

$3 gas hit, and GM execs acted like they were shocked that people didn't want 12MPG SUV's anymore. So, instead of costly retooling and redesigns, they decided to offer rebates. Huge, amazing rebates---to the point where they were losing money on each vehicle sold.

The rebates made new GM vehicles cheaper to finance than used vehicles. Therefore, used GM vehicle prices took a nosedive. When this happens, lease buyouts (GM's big cash cow) took a huge hit.

Which leads us to early last year, where GM is stuck with products nobody wants, and has to accept lease returns for used vehicles they can't give away. They tried to increase sales with...you guessed it...MORE rebates. It didn't work, and they finally realized they were going to have to make efficient smaller cars. They decided to do expensive redesigns and retooling at a time when they had negative cash flow, hence the layoffs we're seeing now.

Today, they're having to retool more plants and pay workers overtime because they can't get enough Cobalts and Aveos on the market to keep up with demand. They have a product people actually want, and they can't make enough of the damn things.

Someone's going to write a book on this some day with the title "How to Screw Up a 100 Year Old Business".

 

[evident]

forget GM, time to buy HMC if anything.

 

[ElFenix]

Originally posted by: Fritzo

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Nothing to do with their build quality, it was their poor decisions in the early 2000's. It's actually a good lesson in greed and poor leadership.

Around 2000, Toyota and Honda were switching to eco friendly cars because they had foreseen high gas prices (they have The Force or something). GM decided to run the SUV train to death...until it was too late to stop the train from going off the cliff.

$3 gas hit, and GM execs acted like they were shocked that people didn't want 12MPG SUV's anymore. So, instead of costly retooling and redesigns, they decided to offer rebates. Huge, amazing rebates---to the point where they were losing money on each vehicle sold.

The rebates made new GM vehicles cheaper to finance than used vehicles. Therefore, used GM vehicle prices took a nosedive. When this happens, lease buyouts (GM's big cash cow) took a huge hit.

Which leads us to early last year, where GM is stuck with products nobody wants, and has to accept lease returns for used vehicles they can't give away. They tried to increase sales with...you guessed it...MORE rebates. It didn't work, and they finally realized they were going to have to make efficient smaller cars. They decided to do expensive redesigns and retooling at a time when they had negative cash flow, hence the layoffs we're seeing now.

Today, they're having to retool more plants and pay workers overtime because they can't get enough Cobalts and Aveos on the market to keep up with demand. They have a product people actually want, and they can't make enough of the damn things.

Someone's going to write a book on this some day with the title "How to Screw Up a 100 Year Old Business".

you seem to think that designing cars and retooling factories can be done overnight.

 

[bignateyk]

I don't think buying stock in an American car manufacturer will ever be a smart move again. Toyota on the other hand would probably be a pretty good buy right now.

 

[AmdEmAll]

Ford is $2.66 a share... time to buy? Its hard to see them going out of business.

 

[GeneValgene]

Originally posted by: AmdEmAll
Ford is $2.66 a share... time to buy? Its hard to see them going out of business.

hmm...i'm wondering this as well....shoot

 

[iamwiz82]

Originally posted by: Fritzo

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Nothing to do with their build quality, it was their poor decisions in the early 2000's. It's actually a good lesson in greed and poor leadership.

Around 2000, Toyota and Honda were switching to eco friendly cars because they had foreseen high gas prices (they have The Force or something). GM decided to run the SUV train to death...until it was too late to stop the train from going off the cliff.

$3 gas hit, and GM execs acted like they were shocked that people didn't want 12MPG SUV's anymore. So, instead of costly retooling and redesigns, they decided to offer rebates. Huge, amazing rebates---to the point where they were losing money on each vehicle sold.

The rebates made new GM vehicles cheaper to finance than used vehicles. Therefore, used GM vehicle prices took a nosedive. When this happens, lease buyouts (GM's big cash cow) took a huge hit.

Which leads us to early last year, where GM is stuck with products nobody wants, and has to accept lease returns for used vehicles they can't give away. They tried to increase sales with...you guessed it...MORE rebates. It didn't work, and they finally realized they were going to have to make efficient smaller cars. They decided to do expensive redesigns and retooling at a time when they had negative cash flow, hence the layoffs we're seeing now.

Today, they're having to retool more plants and pay workers overtime because they can't get enough Cobalts and Aveos on the market to keep up with demand. They have a product people actually want, and they can't make enough of the damn things.

Someone's going to write a book on this some day with the title "How to Screw Up a 100 Year Old Business".

Half of the vehicles that Toyota makes are trucks/SUVs, I'd hardly call that being eco-minded.

 

[jman19]

Originally posted by: Pepsei
should i buy 20 shares?

i still need to fill out the 'outside brokerage approval form' so i can see if i can buy stocks.... been meaning to do tht....

Why not just trade where you work?

Or do you not feel like paying the higher fees?

 

[ivan2]

it suggested to me that it would be easier to turn a profit on the black jack table than buying 20 shares of GM...

 

[OdiN]

Well GM hasn't fired me yet so...meh.

 

[imported_Imp]

Hmmm.. I was looking at getting a Pontiac Vibe. Better sit on that.

 

[mchammer187]

Originally posted by: iamwiz82

Originally posted by: Fritzo

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Nothing to do with their build quality, it was their poor decisions in the early 2000's. It's actually a good lesson in greed and poor leadership.

Around 2000, Toyota and Honda were switching to eco friendly cars because they had foreseen high gas prices (they have The Force or something). GM decided to run the SUV train to death...until it was too late to stop the train from going off the cliff.

$3 gas hit, and GM execs acted like they were shocked that people didn't want 12MPG SUV's anymore. So, instead of costly retooling and redesigns, they decided to offer rebates. Huge, amazing rebates---to the point where they were losing money on each vehicle sold.

The rebates made new GM vehicles cheaper to finance than used vehicles. Therefore, used GM vehicle prices took a nosedive. When this happens, lease buyouts (GM's big cash cow) took a huge hit.

Which leads us to early last year, where GM is stuck with products nobody wants, and has to accept lease returns for used vehicles they can't give away. They tried to increase sales with...you guessed it...MORE rebates. It didn't work, and they finally realized they were going to have to make efficient smaller cars. They decided to do expensive redesigns and retooling at a time when they had negative cash flow, hence the layoffs we're seeing now.

Today, they're having to retool more plants and pay workers overtime because they can't get enough Cobalts and Aveos on the market to keep up with demand. They have a product people actually want, and they can't make enough of the damn things.

Someone's going to write a book on this some day with the title "How to Screw Up a 100 Year Old Business".

Half of the vehicles that Toyota makes are trucks/SUVs, I'd hardly call that being eco-minded.

According to http://online.wsj.com/mdc/publ.../2_3022-autosales.html

toyota's top 3 are

Camry - 355K YTD
Corolla/Matrix - 280K
Prius - 130K

Total Vehicles: 1.8 M
Total cars 1.1 M
Total Light Truck 685K

so its more like 35%

so 65% of what they have sold to date this year is cars

they may offer just as many different model trucks as cars by there is no way the manufacture just as trucks as they do cars

(Car:Truck) 2:1


GM and Ford both STILL sell more light trucks/ SUV's than they do cars about (Car:Truck) 1:2 Ford 1:1.3 GM

 

[PricklyPete]

Originally posted by: Imp
Hmmm.. I was looking at getting a Pontiac Vibe. Better sit on that.

Why? The company is not going out of business anytime soon...that's for sure. If the government is going to bail out all of these banks...there is no way they are going to let GM sink.

 

[Fritzo]

Originally posted by: iamwiz82

Originally posted by: Fritzo

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Nothing to do with their build quality, it was their poor decisions in the early 2000's. It's actually a good lesson in greed and poor leadership.

Around 2000, Toyota and Honda were switching to eco friendly cars because they had foreseen high gas prices (they have The Force or something). GM decided to run the SUV train to death...until it was too late to stop the train from going off the cliff.

$3 gas hit, and GM execs acted like they were shocked that people didn't want 12MPG SUV's anymore. So, instead of costly retooling and redesigns, they decided to offer rebates. Huge, amazing rebates---to the point where they were losing money on each vehicle sold.

The rebates made new GM vehicles cheaper to finance than used vehicles. Therefore, used GM vehicle prices took a nosedive. When this happens, lease buyouts (GM's big cash cow) took a huge hit.

Which leads us to early last year, where GM is stuck with products nobody wants, and has to accept lease returns for used vehicles they can't give away. They tried to increase sales with...you guessed it...MORE rebates. It didn't work, and they finally realized they were going to have to make efficient smaller cars. They decided to do expensive redesigns and retooling at a time when they had negative cash flow, hence the layoffs we're seeing now.

Today, they're having to retool more plants and pay workers overtime because they can't get enough Cobalts and Aveos on the market to keep up with demand. They have a product people actually want, and they can't make enough of the damn things.

Someone's going to write a book on this some day with the title "How to Screw Up a 100 Year Old Business".

Half of the vehicles that Toyota makes are trucks/SUVs, I'd hardly call that being eco-minded.

Half, as opposed to like 90%. GM put all it's eggs in one basket, and they dropped the basket.

 

[PricklyPete]

Originally posted by: mchammer187


According to http://online.wsj.com/mdc/publ.../2_3022-autosales.html

toyota's top 3 are

Camry - 355K YTD
Corolla/Matrix - 280K
Prius - 130K

Total Vehicles: 1.8 M
Total cars 1.1 M
Total Light Truck 685K

so its more like 35%

so 65% of what they have sold to date this year is cars

they may offer just as many different model trucks as cars by there is no way the manufacture just as trucks as they do cars


GM and Ford both sell more light trucks/ SUV's than they do cars

Toyota would happily manufacture the trucks/SUV's if people bought them. American SUV/Trucks have almost always been at least on par with their import counterparts...so American's were fine buying American. American cars have lagged behind imports for quite some time (although it is currently rectified in a lot of cases)...so Americans would rather buy the import than the American car.

GM/Ford are slowly coming out with cars that match import cars in value/performance/reliability and are hoping that the car buying public (rather than the SUV/truck buying public) will start thinking of American cars as a viable option. Cars like the Cadillac CTS, Chevy Malibu, Saturn Aura, Chevy Cruze, Chevy Volt, Pontiac G8, etc. are all aimed at doing this. I certainly have not ruled out an american car purchase as my next vehicle...and this is coming from someone who only owns imports and hasn't considered American for a while.