Hmmm...Now I ain't no real fart smeller...er, uh I mean smart feller, and I wouldn't know $14 billon if it landed on my front door step. But, I'm thinking that if GM (in particular) is claiming it will be out of cash in only a few days, I'm kinda doubting that their share of $14 billion is gonna be very helpful. Anyone else think we'll see these CEO's back on TV talking to Congress again soon? Maybe this time they'll ride in on a donkey. Yeeehaw!
Gents I've played the risk/reward/value algorithm for my 34 year professional life, and I just bought a 4x4 GM for 13K off of list price 3 days ago (no trade included in that) and for a total price less the current price for a new Honda Civic... (I like Honda's too.) My little fleet had two Tahoes and three Hondas with a Cavalier thrown in for grins before my new purchase. Frankly the new GM truck is great. I like it a lot. I also agree that GM MUST evolve to be profitable making a Honda Civic/Accord class vehicle for the future.
By the time you drive that gas guzzler off the lot it is only worth 1.3K. GM cars are shit and depreciate faster than any other brand.
Now that they are getting money with no fuel-efficiency rules where do you think the automakers will go? I mean, in a shorter term, because they will eventually have to go green and start developing this type of cars.
If the big 3 had built cars that last 200K+ miles and hold their values like Civics and Camrys 25 years ago, they wouldn't have NEARLY so much competition. I was fed up with replacing trannies, engines or both after 100-130K miles (yes I did all the recommended service). I had 2 Ford fullsize vans (business) that both went over 220K miles. Big 3 can build trucks that last, but not cars.
In recent times GM and Ford have done very well in JD Power surveys recently (2003+).... they have also cut down on rental sales... which is why you see many more foreign made vehicles for rent. All in vain attempt to raise resale values and improve sales... But the general mentality is that domestics don't hold their value well and have poor quality.... It's a self-fulfilling prophecy so they don't have good resale value due to public perception. This isn't something that is quick to turn around.
Well, unless they plan to starve to death then they are going to find other jobs, aren't they? The economic illiteracy on this board is astounding sometimes. Almost as astounding as the absolute confidence with which said economic illiterates make their nonsensical pronouncements. This is how quack doctors must have talked in the 15th century as they recommended administering leeches to their victims...er, I mean patients.
" After Senate Republicans balked at supporting a $14 billion auto rescue plan approved by the House on Wednesday, negotiators worked late into Thursday evening to broker a deal, but deadlocked over Republican demands for steep cuts in pay and benefits by the United Automobile Workers union in 2009. ... The automakers would also have been required to cut wages and benefits to match the average hourly wage and benefits of Nissan, Toyota and Honda employees in the United States. It was over this proposal that the talks ultimately deadlocked with Republicans demanding that the automakers meet that goal by a certain date in 2009 and Democrats and the union urging a deadline in 2011 when the U.A.W. contract expires. [E.A.] But wait a minute--didn't I read somewhere the claim that the UAW shouldn't be blamed because its labor costs were already competitive with Honda and Toyota? Yes, I did! The leaders of General Motors Corp. and the United Auto Workers union told Congress this week that a new union contract will virtually erase the labour cost gap between GM and foreign competitors with U.S. factories. [Nov. 19, 2008] If the gap had already been "virtually" erased, how could the cuts required to close whatever gap remained have been "steep"? ... " *by mickey kaus
The UAW contract for F weighing in at a staggering 22 pounds!!: <IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=2219305> http://laborpains.org/2008/12/12/22-pounds-uaw-rules-and-regulations/