now Detroit wants taxpayers to lend them money,, what a pile http://biz.yahoo.com/ap/080822/automakers_congress.html?.v=2
General Motors will not fail. Toyota, for one, will do everything to prevent it for reasons both obvious and not so obvious. The last time GM was in crisis was in the late 80s. Toyota 'retaught' GM quality control by essentially agreeing to give them proprietary secrets on manufacturing methods and 'NUMI' was born. General Motors will actually get much more efficient and take a larger % of the global market share with world-class products in the coming years. Two brushes with death has fortified GM and created the internal change necessary for GMs long term viability.
The only way that GM can "not fail" is if (1) there is government intervention of some sort, such as the recently proposed low-interest loans or (2) It does an extremely dilutive equity offering. However, given that it is burning about $10 billion per year, and the market cap is about $5 billion, it would be tough to raise money. If the free market is allowed to take course, then GM will probably go bankrupt in late 2009.
German engineers are world leaders in rolling out fuel efficient engines. The higher fuel costs in Europe made them adapt to the markets... so strange that the US auto industry just complains and keep their old dinosaurs, ratcheting up worker's unions and asking for subsidies, government help all the time...
German engineering. Now that's a term that's been cheapened by Volkswagen's horrible marketing campaign. If people associate Mercedes, Porsche, BMW German Engineering with a Volkswagen, then realize what a pile of shit those Volkswagen cars are, they'll cheapen their perception of Mercedes, Porsche and BMW. Essentially rendering the term "German Engineering" to be a worthless gimmick put on a crappy car made in Mexico.
GM shares tumble to 58-year low Thursday October 9, 12:52 pm ET Shares of GM tumble to 58-year low on worries about credit industry, global drop in auto sales NEW YORK (AP) -- General Motors Corp. shares on Thursday plunged to their lowest level since the opening months of the Korean War, as investors continued to fret that the decline in U.S. vehicle sales may be spreading to the rest of the world. GM shares plummeted by as much as $1.50, or 22 percent, to $5.41 before rebounding to $5.80 later in early afternoon trading. The low point marked the Detroit-based automaker's lowest share price since Dec. 16, 1950, when it hit $5.40, according to the Center for Research in Security Prices at the University of Chicago. The historical price is adjusted for splits and other changes. GM's steep plunge also helped pull the Dow Jones industrial average into negative territory, as it looked to recover from a massive sell-off earlier in the week. The Dow fell about 100 points in early afternoon trading. Thursday marked the GM's fourth-straight day of losses. The automaker's shares are down about 35 percent from Friday's closing price of $9. Analysts have voiced concerns in recent days that the ongoing slump in U.S. vehicle sales could last longer than they previously expected and could spread to other parts of the world, particularly Europe. J.D. Power and Associates said Thursday that it now expects U.S. new vehicle sales to total 13.6 million units this year and 13.2 million in 2009. The company had previously projected 2008 sales of 14.2 million units and 2009 sales of 14 million units. Last year, U.S. sales totaled 16.1 million units. The company also forecast a slow down in vehicle sales growth in both China and India, along with a drop in European vehicle sales. Ford Motor Co. shares also took a big hit Thursday but managed to stay above a more-than-24-year low set the day before. The Dearborn, Mich.-based automaker's shares fell 24 cents, or 9 percent, to $2.42, after dropping to $2.40 earlier Thursday. Ford shares tumbled to $2.10 Wednesday, marking their lowest price since April 5, 1984, according to the Center for Research in Security Prices.
GM reports $2.5B 3Q loss, says running out of cash Friday November 7, 11:48 am ET By Tom Krisher and Jeff Karoub, AP Business Writers GM reports $2.5B 3Q loss, says it's running out of money, suspends Chrysler takeover talks DETROIT, Mich. (AP) -- General Motors Corp. says it lost $2.5 billion in the third quarter and warned that it could run out of cash in 2009. GM also said it has suspended talks to acquire Chrysler. The automaker also said its cash burn for the quarter accelerated to $6.9 billion due to a severe U.S. auto sales slump. The company on Friday reported a net loss of $4.45 per share during the quarter, compared with a record-setting loss of $42.5 billion, or $75.12 per share, a year ago. Revenue fell to $37.9 billion from $43.7 billion.