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YEah, that was predicted a few quarters back.
GM is struggling. If they can continue to survive a few more quraters, they should be fine.
But I guess it depends on how badly their trucks and SUV's are going to be hit. That's really an unknown.
 

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Delphi is still out there. Four plant closings cost lotsa moola. GMAC will need plus'd up again. Saturn still needs advertising. Saab is withering on the vine with old product. GM badly needs Colorado/Canyon redesigns. Then their are the bad car/home loans. Rescap. Buyouts will cost a fortune. VEBAs need funding.

Good News: Maybe they have a buyer for Hummer. Strikes are over and contracts signed (hopefully all is well). Volt on the way. Malibu doing well.

Let's just hope that the gas prices don't start aborting Lambda sales.
 

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The whole thing about GM is weathering the next few months. If they can, they'll be able to pull out of it fine. I'm going to be paying very close attention to the sales numbers for this month. Hopefully May was just one isolated disastrous month. Key to the numbers will be seeing the numbers on the SUV's/Trucks and if the rises in other areas (crossovers, Cobalt, Malibu, CTS) take up any of that slack.
 

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this is why GM needs to sell $40/50K SUVs to keep afloat. they can not survive selling only $15K cobalts as there is not enough profit in the cobalt
 

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The largest U.S. automaker may secure a bank loan by borrowing against foreign operations, inventory, trademarks or its stake in lender GMAC LLC, New York-based analyst Himanshu Patel said in a report released today.
This development, while not exactly a doom-and-gloom one, weighs on my mind when thinking about the more immediate future for GM. You can rail against GM's competitors, claiming that they aren't better run companies, but we're in the sixth year of an [alleged] turn around, and GM's remortgaging the house... again. That's frightening! I'm trying to think of the last time Toyota, Honda or BMW were borrowing against their foreign operations, their inventory, or their trademarks(!).

GM fell 41 cents to $15.82 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have declined 36 percent so far this year.
Recently, the Einsteins at Dodge & Cox proclaimed GM was near a low and bought in at $19. 17% down; maybe they were wrong? There's more to a good buy than a low share price, and the above makes me think that GM as an investment is still quite questionable.

It'll be nice when their turnaround plan (ahem) gains traction. Six years and counting, Rick. It seems like you're going in the wrong direction from just about every perspective.
 

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I think GM's turnaround and future for that matter will really depend on their Asian operations particularly China. They are doing well there and That seems to be where a large part of their profits are coming from.
 

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Can GM turn in Flint Michigan for the container deposit?

That would be an extra $0.05.
 

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I wonder if any of the top brass at GM are saying to them selves "I wonder if the G8 wagon wasnt such a bad idea after all..."
Or shelving Zeta to slow down the tooling and readiness of Oshawa to build half-a-million RWD car units. Yeah, they're large cars, but a G8 wagon, sport truck, and multiple sedans could fill the decline of the big trucks and SUVs.

I would be all over the G8 sport wagon!
 

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Or shelving Zeta to slow down the tooling and readiness of Oshawa to build half-a-million RWD car units. Yeah, they're large cars, but a G8 wagon, sport truck, and multiple sedans could fill the decline of the big trucks and SUVs.

I would be all over the G8 sport wagon!
count me in as well... just had a baby and could use a vehicle with more room but not one as big as a house. My neighbor has a new Avalanche and can't even fit it in his garage. yikes
 

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The brand consolidation that a lot of people on this board loathe may be coming by force - either due cutbacks to staff and programs needed to keep the company solvent or when a consortium of private equity firms takes over and starts ax'ing products (see Chrysler).
 

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All the growth will be in China and India in the future. As the United States is a replacement market the only growth will be shifting market share of existing demand. That will be costly to make inroads for GM.

I can see GM spending more money overseas and only investing what is necessary to maintain current share in the United States. Of course the collapse of the truck market will have to make them spend a bunch of money here as well to maintain market share.
 

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Or shelving Zeta to slow down the tooling and readiness of Oshawa to build half-a-million RWD car units. Yeah, they're large cars, but a G8 wagon, sport truck, and multiple sedans could fill the decline of the big trucks and SUVs.

I would be all over the G8 sport wagon!
I agree. People with large SUV's are not going to want to replace it with a compact or most mid size cars. There aren't many wagons available right now, I think it would be worth a shot, especially if they are making the car for other markets than just NA. Throw the extra 2 mode systems they have laying around from the 900's that aren't selling and they'd have something going possibly.
 

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The brand consolidation that a lot of people on this board loathe may be coming by force - either due cutbacks to staff and programs needed to keep the company solvent or when a consortium of private equity firms takes over and starts ax'ing products (see Chrysler).
speaking of firms takes over, I ponder if we could begin to think then we might face the possibility of a takeover as well?
 

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this is why GM needs to sell $40/50K SUVs to keep afloat. they can not survive selling only $15K cobalts as there is not enough profit in the cobalt
I hope this isn't right... If it is we are doomed... The $40-$50K SUV market is down >30% and is shrinking fast...

The future is a profitable small car... that we can sell without bribing customers with incentives and gimmicks
 

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The future is a profitable small car... that we can sell without bribing customers with incentives and gimmicks
You hit the nail on the head right there. The Civics of the world sell with minimal advertising and maximum product - fun to drive, low maintenance, very efficient. They don't sell much below sticker, they don't sit on the lot very long, and they generally provide the experience for the buyer that makes them a devotee to the H brand for life. Whether it's the base model or top of the line, those cars sell for any of a multitude of reasons that the Cobalts of the world don't.
 

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Three things come to mind.

1. Dodge tried the "big" wagon thing. It didn't work out.
2. The new Malibu has proven GM can build great cars that people will buy. If they can pull off a new Cobalt that has the same excitement as the current Malibu they just might be ok in the long run.
3. I don't know where the rest of you live, but the civic is advertised around here just as much as the camry or Malibu. honda spends a TON of money making sure the public stays in love with their little car. Unlike the Cobalt, they are able to charge full sticker for it atleast.
 

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Wait 'til GM is crushed by the SUV residuals when lease turn-ins ramp up. They are gonna be drowning in SUVs that will auction at well below what they predicted when the leases were originally sold. It is gonna be ugly... and get uglier as all the leased SUVs are returned for the next few years.:eek:

Ford, Chrysler, and Toyota (to a lesser extent) will be just as hurt.

On the bright side, the owners will turn those suckers in and be oh so thankful to get rid of 'em without losing their shirt (and pants for that matter).

I'm not seeing how GM (and Ford and Chrysler) survive all this.

A day of reckoning is comin'.:(
 
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