General Motors

[PolfaJelfa]

Who thinks GM is headed to bankruptcy in the future and this spiral will continue and who thinks it will make a comeback.

 

[hanselthecaretaker]

I find it unfathomable for a giant like GM to go under. It would have too devastating of an impact on domestic and perhaps global economies in many sectors if that ever happened. They are going through some major reconstruction planning which I would imagine they'd begin phasing in some time early this year. Toyota is breathing down their necks for the #1 spot, which looks likely they'll secure. Eventually GM will gain better footing once again but with gas prices the way they've been, domestic auto makers will surely have to focus more on fuel efficient car production in order to remain competitive. It's sad the way the auto industry has been going lately, but I think this trend is part of a bigger cycle. Years from now, perhaps Toyota will start making poor decisions and fall behind in quality as a ripple effect of being at #1, and be in a comparable position to that which GM is now in. It's tough to stay on top, and I'm sure GM will want to regain that spot if they lose it, but it'll definitely take time, and most likely plenty of it. It'll probably take years for them to get back into a profitable position, let alone gain a favorable marketshare advantage. It'll be interesting to see how this year goes.

 

[bran987]

read in the wall street journal today that GM's sales in China are up 35% from last year. promising, but don't know how that compares to the other china manufacturers, or what percentage of China's business GM represents.

 

[PolfaJelfa]

I like high risk picks like that....when people are selling...im contemplating waiting till they are realy in the shiter and buying a boatload of stock/options in hopes that they will come back.

Definatelly will have to be sure before i do anything.

 

[manny78]

GM needs to rethink its whole structure. Unfortunately, it means some sort of collision with the union. Once its done, they might reach Toyota's level.

 

[MattTheSkywalker]

They will end up being an engineering company. Might be worthwhile to buy their bonds but I would stay away from the stock.

 

[Mr.X]

Who thinks GM is headed to bankruptcy in the future and this spiral will continue and who thinks it will make a comeback.

they have $2,000,000,000 ($2billion) in cash reserves right now, so it's too early to judge a possible bankruptcy. However, if delphi (GMs' former subsidiary) has a full on worker strike, then GM will almost have to file because w/o delphi there is not way to make cars. delphi is GMs' biggest parts supplier. That being said, the way it looks now, it is very unlikely delphi workers will go on strike, as they know the possible outcome.

 

[PolfaJelfa]

I remember workign close by to the Delphi headquarters..not too long ago..and thinking about this. There was a huge story about this then in the local media.