GM's Market Value Is Only $7 Billion - Half That of Avon Thursday June 26, 5:22 pm ET How the mighty have fallen. At one time, General Motors was considered the pre-eminent US corporation, a giant among giants. But now, on news that Goldman Sachs reduced the company's rating to "sell", GM's shares (NYSE:GM - News) have plummeted to less than $12, the lowest level since 1955. That means the world's largest auto maker has a stock market value of only about $7 billion. That compares with a market cap of about $56 billion in 2000, when the stock was at its all-time high of $94.62 a share. To put that in even more perspective, GM's market value is now roughly equivalent to that of tax-preparation provider H&R Block (NYSE: hrb) or toy maker Mattel (NYSE: mat). Even more humbling for the auto maker, GM's value is now: Half that of cosmetics company Avon (NYSE: avp) A third of cruise operator Carnival Cruiselines (NYSE: ccl) A quarter of Internet media company Yahoo! (NASDAQ: yhoo) A fifth of online auction house Ebay (NASDAQ: ebay) A sixth of retailer Home Depot (NYSE: hd) A seventh of biotech firm Amgen's (NASDAQ: amgn) league An eighth of drugstore chain CVS (NYSE: cvs) A ninth of fast-food giant McDonald's (NYSE: mcd) Last, but not least, GM is now 1/66th the size of fellow Dow component Exxon. (NYSE: xom)
GM products arent attractive anymore. I dont think they have a good line up. Their flagship big SUVs / trucks are now getting crashed because of oil price. Their cars are below average at best, most would still buy one of the japanese brands instead of a chevy or pontiac. The only good brand is cadillac, which competes in the entry and midsized luxury segment quite well. But i just dont see how this company could turn around with the products they have, and the stock price reflect that. Maybe if they do a very aggressive restructure and trim all the fat...who knows.
Hondas, Toyotas, Mazdas, Hyundais gotta be the ugliest cars I have ever seen. If I had to drive one of those I would want tints so no one can see me. Not all GM's may be the best looking, some are, but they are less ugly than the rest.
RPT-Detroit's mood grim as automakers face the brink Mon Jun 30, 2008 7:15am EDT By Poornima Gupta DETROIT, June 29 (Reuters) - After three decades at work in a GM factory, John Martinez has reached a crossroads. Martinez, 50, must choose between retiring and making a long and expensive commute across state lines to stay with General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz). Any future he can imagine is going to be costly and tough. "My whole family is under stress," he said. The same can be said of the embattled U.S. auto industry and its recession-hardened hometown, Detroit. GM, once an emblem of U.S. post-war economic might, is being driven to the brink by dwindling sales that are expected to test cash reserves and the nerves of investors in the months ahead. http://www.reuters.com/article/marketsNews/idINN2936189420080630?rpc=44
GM may surprise some people as it moves to its global chassis - their new cars will soon be outstanding: http://www.autoblog.com/2008/04/17/officially-official-opel-insignia-revealed/
Gm has room to go down but its not going out. At worst it gets smashed into pieces and picked up by various interests.
Ford sales plunge Buyers flee SUVs and pickups and also shun Ford's cars and crossovers as automakers face worst month for U.S. sales since '92. July 1, 2008: 12:11 PM EDT NEW YORK (CNNMoney.com) -- Ford Motor reported that its U.S. sales tumbled 28% in June, kicking off what could turn out to be the weakest month for auto sales in 16 years. Ford, the No. 3 automaker in terms of U.S. sales, saw sales of its SUVs plunge by more than half and pickups and other trucks fell more than a third. http://money.cnn.com/2008/07/01/news/companies/auto_sales/index.htm?source=yahoo_quote
Merrill says GM bankruptcy "not impossible" Wednesday July 2, 10:38 am ET By Soyoung Kim DETROIT (Reuters) - General Motors Corp (NYSE:GM - News) will need to raise as much as $15 billion in cash to shore up liquidity and bankruptcy is "not impossible" if the U.S. auto market continues to slump, Merrill Lynch said on Wednesday. Although other analysts have suggested GM needs to raise funds to ride out the downturn in the U.S. auto market through 2009, Merrill's estimate of GM's financing needs was the highest yet. It also carried the most stark warning of the bankruptcy risk for the largest U.S. automaker. http://biz.yahoo.com/rb/080702/gm.html
More losses for Ford. The experts give Ford till 2010 or 6 quarters before the writing is on the wall or not. The overpaid dopes at the top have let a once proud and prosperous company really go down hill.