GM's Future?

[FenwickHockey65]

Originally Posted by Number 3

A lot of good comments.

GM now has a clean balance sheet and reasonable debt. We have outstanding products launching now (Camaro, LaCrosse, Equinox, Terrain, CTS Wagon and the SRX) all getting great reviews. Next year we will have the CTS Coupe, Cruze and Volt and a surprise or two.

And selling faster than GM can build them. GM's hitting home run after home run here. Future product outlook looks even better.

[FenwickHockey65]

Originally Posted by Buckbo

Past history has shown that when a govenment takes over a car company it fails with 10 years but this is different. Our government believes that if you shovel enough money into something it will work. The question should be will GM ever be in the black again?

There are plenty of companies out there that exist and prosper today after government intervention.

[THUMPER20X]

Originally Posted by FenwickHockey65

There are plenty of companies out there that exist and prosper today after government intervention.

True but just as big a thing is consumer buying the cars. GM's biggest hurdle right now is getting back customer respect from past shit products and alot of people are holding a grudge because of the money GM took.
1-Image change.
2-Get rid of some lines models.
3-Build some great cars
4-get back respect of consumers.

They need to do these 4 things 100% with no compromise and they are doing that. But once again if theyre not selling cars they are screwed. They need to get the volt out and make it with a lower MSRP or get some serious government incentives and need to get the Wave out or another small Chev hatch. Stay with work trucks and crossovers and avoid Ridiculous crap like the Escalade and stufff. Build what the market wants and build it and design it well. They did this with the Camaro, now the Lacrosse. As long as they follow this they will be fine. But it comes down to sales.

[Captain Awesome]

Originally Posted by FenwickHockey65

Lambda-based pickup has been canned.

So, what are they going to replace the mid-size pickup line with? Or will they just continue the GMT350 platform?

[nova]

Originally Posted by Dragoneye

GM's future is all but secured, but they are on the fast-track to success. There's really very little to worry about.

Like I said, the pudding proof will be the IPO and when the new GM tries to borrow money for whatever reason sometime in the future.

If the IPO interest is lukewarm to cold, things won't be looking so rosy.

And personally, if I was in the business of lending money, after what happened to secured creditors in the bankruptcy, I'd think long and hard before lending any money at all to the new GM.

[Fast Eddie]

Originally Posted by Susantroy1

I haven't read that anywhere by an independent source, I might be wrong though. The products that GM has come out with recently had been well into design and production for years with no input from the Government other than standard restrictions. They only have been in the ownership business months, I did read however that the $60 Bil in "loans" that we had given to GM most likely will not be repaid to the taxpayer. It will be one joyess day when they do get out of the private sector of business I will breath allot easier concerning GM's future.

The "loans" are now stocks. So when the company goes public again, in about 18 months, the government can sell the stocks, probably at a profit, and regain the monies. If the gov't paid $1/share and sells them for $2/share how is the money not recouped? The individual taxpayers never doled out anything. The gov't borrowed money and then turned around and, essentially, bought stock in GM. When the company comes back and the stock is sold the loans the gov took out can be repaid and any profit goes to pay down national debt, that SOP for this type of thing.

Originally Posted by Buckbo

Past history has shown that when a govenment takes over a car company it fails with 10 years but this is different. Our government believes that if you shovel enough money into something it will work. The question should be will GM ever be in the black again?

When has the US gov't taken over a domestic car company before?

Originally Posted by nova

Like I said, the pudding proof will be the IPO and when the new GM tries to borrow money for whatever reason sometime in the future.

If the IPO interest is lukewarm to cold, things won't be looking so rosy.

And personally, if I was in the business of lending money, after what happened to secured creditors in the bankruptcy, I'd think long and hard before lending any money at all to the new GM.

You mean where the lenders got like 6-10% of the company, like the government asked, instead of the nothing the bankruptcy court wanted? That's a risk all lenders take.

[ShnOmac]

Originally Posted by Number 3

Next year we will have the CTS Coupe, Cruze and Volt and a surprise or two.

But people still need to buy cars and the economy still needs to pick up to be profitable which is what will assure long term viability.

Care to discuss further????

[Hylton]

Originally Posted by FenwickHockey65

We'll be fine...

Class-leading products. Aggressive marketing. That's the new GM.

I hope so....

[PsyDoc]

The best predictor of future behavior is past behavior. If GM gets "back to its roots" so to speak, then it should have a solid future. If GM slips back into the "coma" it was in for the last decade or so, then it will be right back to bankruptcy.

[nova]

Originally Posted by Fast Eddie

You mean where the lenders got like 6-10% of the company, like the government asked, instead of the nothing the bankruptcy court wanted? That's a risk all lenders take.

Its a risk lenders take, but generally they have a good idea of their risk level based on law and jurisprudence. That has been thrown out the window with respect to pretty much any heavily unionized industry now.

The GM and Chrysler bankruptcies showed that Uncle Sam is willing and able to screw one group in order to benefit a politically favorable group, namely the UAW.

The prefered bondholders were owed $27 billion and recieved a 10% stake in the new GM. The UAW was owed $20 billion and recieved a 17.5% stake. If there really was no value left in the company after accounting for the DiP financing, then nobody aside from .gov should have gotten a penny, but somehow it didn't work like that.

I don't care how you work the math, the creditors got screwed and anybody looking to loan money to the new GM is going to be very cognizant of that fact. Major lenders have already come right out and said they are reevaluating their lending practices with respect to how the auto bankruptcies were handled.

Whitewash it all you want but its not a good omen for the future....

[Hylton]

Originally Posted by nova

Its a risk lenders take, but generally they have a good idea of their risk level based on law and jurisprudence. That has been thrown out the window with respect to pretty much any heavily unionized industry now.

The GM and Chrysler bankruptcies showed that Uncle Sam is willing and able to screw one group in order to benefit a politically favorable group, namely the UAW.

The prefered bondholders were owed $27 billion and recieved a 10% stake in the new GM. The UAW was owed $20 billion and recieved a 17.5% stake. If there really was no value left in the company after accounting for the DiP financing, then nobody aside from .gov should have gotten a penny, but somehow it didn't work like that.

I don't care how you work the math, the creditors got screwed and anybody looking to loan money to the new GM is going to be very cognizant of that fact. Major lenders have already come right out and said they are reevaluating their lending practices with respect to how the auto bankruptcies were handled.

Whitewash it all you want but its not a good omen for the future....

I agree with all your points except the second and last sentences. Why? Because greed -- for lack of a better word -- is good.

Greed is right.

Greed works.

Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms -- greed for life, for money, for love, knowledge -- has marked the upward surge of mankind.

And greed -- you mark my words -- will not only save GM, but that other malfunctioning corporation called the USA.

[Brokinarrow]

Originally Posted by Hylton

I agree with all your points except the second and last sentences. Why? Because greed -- for lack of a better word -- is good.

Greed is right.

Greed works.

Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms -- greed for life, for money, for love, knowledge -- has marked the upward surge of mankind.

And greed -- you mark my words -- will not only save GM, but that other malfunctioning corporation called the USA.

Hm, that's an interesting way of thinking about it. But yeah, that pretty much nails capitalism I guess.

[Number 3]

Originally Posted by shnomac77

Care to discuss further????

errrrrr um, no

[FenwickHockey65]

Originally Posted by Captain Awesome

So, what are they going to replace the mid-size pickup line with? Or will they just continue the GMT350 platform?

GMT-700.