One opinion
1/2/06, 03:40 AM
#1
Closet American
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From AutoBlog:
considering GM has about 360 billion in debt, and can't even break even w/revenue, and its break up value is almost nothing(relatively), I'd actually give the stock a value below zero. Seems the only reason it has any value is from the brand names and GMAC. And possibly the hope that some company or the US government will bail them out. ie, basically that means the government. GMAC has value, but GM can't sell it off since its the only worthwhile asset they have. And I can't think of any automaker that would be interested in all of GM. I suppose a company like Volkswagen or Toyota might be interested in the truck, heavy truck division, but thats about it. And some bits and pieces have value, like onstar. But all the car divisions? Worthless.
I've said it before, GM needs to reduce its divisions to 3 brands, a la Toyota. Maybe even 2, Cadillac and Chevy. Reduce its model offerings to about 3 sedans, 2 coupes, 3 trucks, and 2 suv's. Basically 4 platforms. Fire all the senior management. Declare bankruptcy and eliminate all the unions. Tough decisions, but after 30 years of incompetence, tough choices are all that's left.
Of course, given the way management usually works there, they'll probably declare bankruptcy, try to liquidate, and retire, giving themselves huge golden parachutes. Either that or act like rats and just leave with fat severence packages, not even bothering with the other stuff.
I've said it before, GM needs to reduce its divisions to 3 brands, a la Toyota. Maybe even 2, Cadillac and Chevy. Reduce its model offerings to about 3 sedans, 2 coupes, 3 trucks, and 2 suv's. Basically 4 platforms. Fire all the senior management. Declare bankruptcy and eliminate all the unions. Tough decisions, but after 30 years of incompetence, tough choices are all that's left.
Of course, given the way management usually works there, they'll probably declare bankruptcy, try to liquidate, and retire, giving themselves huge golden parachutes. Either that or act like rats and just leave with fat severence packages, not even bothering with the other stuff.
1/2/06, 12:21 PM
#3
When it hits the fan, either GM will be massively restructured with a division or two being dropped and lots of heads being chopped. The other thing that could happen is another car company buying up bits and pieces of it, maybe 2 or 3 compaines may each take something they want. Toyota will not touch it if the UAW is involved, that's for sure.
1/2/06, 12:25 PM
#4
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I still don't forsee a total collapse with other car companies buying out GM but I do see a big restructuring on the way. Trimming the fat per se.
Hey, they gotta do what they gotta do to survive. I think they'll pull through but its gonna have its cost.
I just don't see anyone actually wanting to touch that situation in a merger until the problem is rectified.
Hey, they gotta do what they gotta do to survive. I think they'll pull through but its gonna have its cost.
I just don't see anyone actually wanting to touch that situation in a merger until the problem is rectified.
1/2/06, 07:34 PM
#5
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Originally posted by 05MustangFanII@January 2, 2006, 9:47 AM
I agree. down to three. Chevrolet. Cadillac. And Pontiac.
I agree. down to three. Chevrolet. Cadillac. And Pontiac.
However with the current novelty of Hummer vehicles, I doubt they'll get collapsed.
1/3/06, 05:59 PM
#6
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My take is this:
Keep Chevy, Cadilliac, fold Saturn and Buick into the same company. Keep Saab in Europe.
Dump Hummer, Pontiac, and GMC.
Chevy makes entry level models, new company (Saturn/Buick) upper class models, and Cadilliac high class models. Use the Saab/Opel thing in Europe.
As is though, I like the idea of bringing Pontiac, GMC and Buick into one dealership, with the Pontiac making small sporty cars and SUV's, GMC making big SUV's and trucks, and Buick making large cars. Do I think they will make it work...not anytime soon.
I personally think Hummer and Saab weren't well thought out purschases, and trying to make Saturn into a Lexus is just stupid.
Keep Chevy, Cadilliac, fold Saturn and Buick into the same company. Keep Saab in Europe.
Dump Hummer, Pontiac, and GMC.
Chevy makes entry level models, new company (Saturn/Buick) upper class models, and Cadilliac high class models. Use the Saab/Opel thing in Europe.
As is though, I like the idea of bringing Pontiac, GMC and Buick into one dealership, with the Pontiac making small sporty cars and SUV's, GMC making big SUV's and trucks, and Buick making large cars. Do I think they will make it work...not anytime soon.
I personally think Hummer and Saab weren't well thought out purschases, and trying to make Saturn into a Lexus is just stupid.
1/7/06, 01:45 PM
#8
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Originally posted by Fordracing200@January 7, 2006, 2:43 PM
I think GM should just close and be done with it. I do believe however that in the end Gm will go bankrupt and will be cut up into pieces
I think GM should just close and be done with it. I do believe however that in the end Gm will go bankrupt and will be cut up into pieces
GM builds Ford pride......you wouldn't care about Ford as much if it wasn't for GM.
Why would anyone want the US to lose thousand of jobs....so those same jobs can go to the Japanese, and we'll be forced to drive a Toyota?
1/9/06, 12:10 AM
#9
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I doubt it will fold, but it CERTAINLY needs to be restructured and they are in desperate need for revised marketing (not just ads, but how the companies are positioned, etc.).
I say three total brands:
1) GM (fold Chevy, GMC, Saturn, Buick and start with a relatively clean slate from a marketing perspecitve -- kill Pontiac and Buick and Saab in NA)
2) Hummer (to distinct a brand to fold into a larger parent),
3) Caddilac (proved they can survive and be the luxury brand
Pool their resources, create a few really good cars and they might have a shot.
However, the sad thing is I am not sure how close Ford is to joining them on the same path. They both really need to develop better platforms they can share amung multiple cars, and stop penny pinching -- being the cheapest obviously isn't working.
I say three total brands:
1) GM (fold Chevy, GMC, Saturn, Buick and start with a relatively clean slate from a marketing perspecitve -- kill Pontiac and Buick and Saab in NA)
2) Hummer (to distinct a brand to fold into a larger parent),
3) Caddilac (proved they can survive and be the luxury brand
Pool their resources, create a few really good cars and they might have a shot.
However, the sad thing is I am not sure how close Ford is to joining them on the same path. They both really need to develop better platforms they can share amung multiple cars, and stop penny pinching -- being the cheapest obviously isn't working.
1/10/06, 01:11 PM
#10
Cam Tease
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GM needs to first negotiate a deal with their 1 million retirees to accept GM company product vouchers (say a new $30k GM car every other year) rather than the $14k annual pension they currently receive. Once that is accomplished, they must reduce their manpower dependence to the point where their vital jobs can be filled by non-unionized employees. Ax however many divisions/programs/cars neccesary to eliminate the UAW. Once they're finally making profits again, use this money to invest in a total revamping of factories and manufacturing methods into automated/robotic facilities, and eliminating waste. Eventually, expand the company back to close its orginal scale (only this time with robots instead of whining UAW ingrates.)
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