Citigroup Downgrades GM to Hold from Buy

1390 Views 24 Replies 11 Participants Last post by Buickman, May 28, 2008

steinravnik

Discussion Starter · May 27, 2008

GM Declines After Citigroup Cuts Shares on Higher Energy Costs

May 27 (Bloomberg) -- General Motors Corp. fell after Citigroup Inc. cut its rating on the largest U.S. automaker to ``hold'' from ``buy,'' citing higher energy and commodities costs as well as continuing credit constraints.

``Auto fundamentals are poised to deteriorate beyond 2008,'' Citigroup analysts wrote in a note. GM faces ``reduced earnings power and cash burn risks.''

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFnW44IVGYlU

Save

1 - 3 of 25 Posts

steinravnik

Discussion Starter · #20 · May 28, 2008

Buickman said:
yes but our competitors can absorb the fallout whereas GM is on it's last legs financially. soon we will be mortgaging the remaining assets we have and it's not very much having already pledged plants and even equipment. there isn't a lot Red Ink Rick hasn't collateralized.

Buickman's got a good point. This is definitely a down market not seen in a while, and GM is pretty weak financially. If you pit Toyota with their hoards of cash against GM, Toyota's got a clear advantage. I'm rooting for GM, and things are definitely improving for them product wise, but I'm afraid it may be too late. If they can get the Volt to market as promised, that may be the last hope. Time will tell.

Save

steinravnik

Discussion Starter · #22 · May 28, 2008

Buickman said:
as we have seen over the years, it's one thing after another at GM, one excuse and reason after another. how many failings do we have to continue to endure before RIR is shown the door. isn't it funny how it is NEVER the fault of management, and I use that term loosely?

IMO it is the fault of disastrous marketing, mistreatment of employees, retirees, dealers, and customers. GM just doesn't have a clue about retail automotive, which just happens to be the business we're in.

they claim selling assets allows them to focus on core operations. I say they do it to enrich the banks who populate the Board of Bystanders. RIR & CO truly don't have the first clue about how to sell cars. they throw money at problems and attempt to buy deals thru giveaways. the day of reckoning is quickly approaching as the well runs dry.

I don't think it's fair to completely blame Wagoner. Sure, he's made some mistakes, but so have his predecesors. It takes decades of mismanagement to take a company as powerful as GM was in the 1960's and reduce them to what we have today.

Save

1 - 3 of 25 Posts

This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.

Top Contributors this Month