GM In Talks To Sell Truck Business To Isuzu

[SierraGS]

Think GM should forget about selling the MD line and push the government for an extra 5 billion in loans to develop a hybrid version of the Kodiak/Topkick.

[gardnet1]

I'm looking for the why here.

I thought GM made a pretty good dime on these trucks and had a good share of the market. Maybe they see it being more competitive with nissen building some next year in MS.

Are they selling to raise capital or to remove distractions to their turnaround, or both?

[Geotpf]

Originally Posted by Stéphane Dumas

possible but then I also taught of another possibility: what if Isuzu buy some stakes/shares of GM? Something around 10-15% of GM share?

Unlikely. It used to be the other way around, with GM owning a significant chunk of Isuzu-but there thing stopping this is the fact that Toyotanow owns a chunk of Isuzu, and therefore would indirectly own a part of GM if that happened. Plus, GM is a lousy investment-be honest, can you see GM making a profit any time soon? Or ever? They've lost money, frequently tens of billions, each year since 2004, and the situation is getting worse, not better.

[Geotpf]

Originally Posted by gardnet1

I'm looking for the why here.

I thought GM made a pretty good dime on these trucks and had a good share of the market. Maybe they see it being more competitive with nissen building some next year in MS.

Are they selling to raise capital or to remove distractions to their turnaround, or both?

The why is simple: GM is broke, and is now selling off anything not nailed down in a desperate attempt to not go out of business. Of course, one can not shrink your way to profitability, so this is just delaying the envitable. Now, a delay might actually be all that GM needs-the Detroit Three are like three guys being chased by a bear in the woods. To survive, two of them don't need to out run the bear-they just have to outrun the third guy. That is, if selling stuff gives GM a year or two longer, that might be enough time for Chrysler to go tits up first. If there is a Chrysler-sized chunk of demand no longer being satisfied by the marketplace, GM certainly will grab a large amount of that ex-Chrysler business, saving it, at least temporarily.

[Buickman]

Red Ink Rick and company are willing to take any and all cash for whatever they can get as they scrammble for cash in lieu of having any idea of how to run a car company. if any of you are listening, let Buickman show the way to successful marketing of our products. conversley, listen to Red Ink Rick as his bag of BS!