GM downgraded to junk bond status
05-07-2005 | 10:40 AM
#21
SSU'S Vice Mod
Joined: Jul 2004
Posts: 2,391
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From: Hazard Co. Maryland
Originally Posted by BlackTA
I doubt they will dump saturn, thats one of their better selling branches.
I'ts one of their moderately selling branches. They also do not make much margin on those cars. It's a love/hate relationship as far as ownership. Either you love them or you hate them and it's a division that is saddled with the aforementioned customer goodwill problem.
05-07-2005 | 01:54 PM
#22
GMAC makes a lot of money for GM.
But GMAC's cost of capital has of course gone up as the credit rating gone down.
I've read that GM offeres 61 different vehicles. That is a lot.
I expect that might be forced to sell off some businesses and we might see some changes at the board level.
Remember, companies like BMW or Honda only sell like 10 different offerings each. You can do 10 things well, but maybe not do 50 things as well if the businesses don't have enough money for r&d and indepedence to make timely decisions. I had heard over and over that GM insiders had fought like crazy for resources for the f-body, and had barely any.
Buying GM stock might be interesting as long as they don't go into bankruptcy.
But GMAC's cost of capital has of course gone up as the credit rating gone down.
I've read that GM offeres 61 different vehicles. That is a lot.
I expect that might be forced to sell off some businesses and we might see some changes at the board level.
Remember, companies like BMW or Honda only sell like 10 different offerings each. You can do 10 things well, but maybe not do 50 things as well if the businesses don't have enough money for r&d and indepedence to make timely decisions. I had heard over and over that GM insiders had fought like crazy for resources for the f-body, and had barely any.
Buying GM stock might be interesting as long as they don't go into bankruptcy.
05-07-2005 | 04:28 PM
#24
Originally Posted by Pro Stock John
GMAC makes a lot of money for GM.
But GMAC's cost of capital has of course gone up as the credit rating gone down.
I've read that GM offeres 61 different vehicles. That is a lot.
I expect that might be forced to sell off some businesses and we might see some changes at the board level.
Remember, companies like BMW or Honda only sell like 10 different offerings each. You can do 10 things well, but maybe not do 50 things as well if the businesses don't have enough money for r&d and indepedence to make timely decisions. I had heard over and over that GM insiders had fought like crazy for resources for the f-body, and had barely any.
Buying GM stock might be interesting as long as they don't go into bankruptcy.
But GMAC's cost of capital has of course gone up as the credit rating gone down.
I've read that GM offeres 61 different vehicles. That is a lot.
I expect that might be forced to sell off some businesses and we might see some changes at the board level.
Remember, companies like BMW or Honda only sell like 10 different offerings each. You can do 10 things well, but maybe not do 50 things as well if the businesses don't have enough money for r&d and indepedence to make timely decisions. I had heard over and over that GM insiders had fought like crazy for resources for the f-body, and had barely any.
Buying GM stock might be interesting as long as they don't go into bankruptcy.
lol.
05-09-2005 | 02:09 PM
#25
TECH Veteran
Joined: Feb 2004
Posts: 4,231
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From: Phoenix, AZ Hometown: Aberdeen, SD
Originally Posted by Nine Ball
Ford is kicking *** with the new Mustang
Niche cars like the Mustang and GTO don't save automakers when they do well, it's the bread-and-butter mainstream offerings that have to succeed like the Five Hundred and Impala.
05-09-2005 | 03:40 PM
#26
SSU'S Vice Mod
Joined: Jul 2004
Posts: 2,391
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From: Hazard Co. Maryland
Originally Posted by TriShield
...and they got downgraded too.
Niche cars like the Mustang and GTO don't save automakers when they do well, it's the bread-and-butter mainstream offerings that have to succeed like the Five Hundred and Impala.
Niche cars like the Mustang and GTO don't save automakers when they do well, it's the bread-and-butter mainstream offerings that have to succeed like the Five Hundred and Impala.
valla (sp?) the dodge minivan and the k-car.
05-09-2005 | 04:22 PM
#28
Originally Posted by TriShield
...and they got downgraded too.
Niche cars like the Mustang and GTO don't save automakers when they do well, it's the bread-and-butter mainstream offerings that have to succeed like the Five Hundred and Impala.
Niche cars like the Mustang and GTO don't save automakers when they do well, it's the bread-and-butter mainstream offerings that have to succeed like the Five Hundred and Impala.
Then both of them better get their **** together ASAP.
05-09-2005 | 08:50 PM
#29
Originally Posted by Pro Stock John
Remember, companies like BMW or Honda only sell like 10 different offerings each. You can do 10 things well, but maybe not do 50 things as well if the businesses don't have enough money for r&d and indepedence to make timely decisions.
05-09-2005 | 10:29 PM
#30
TECH Regular
Joined: Nov 2004
Posts: 440
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From: league city,tx
The only domestic company that is doing moderately well (and I use the term domestic because of their Mercedes ties) is Dodge. Suprisingly they are about the only domestic automaker that has some fresh/appealing designs. Reducing product offerings and eventually reducing reliance of trucks/suv's as bread and butter vehicles will eventually help the domestic automaker(have they noticed the price of gas lately-makes you think twice about backing the Yukon out of the garage). If they can get back to making car products that are interesting and have the right features/price quotient I think would be a step in the right direction. Why is it that we are seeing Toyota, Kia and other foreign makers gaining a better share of the car market ? Is it because they perfected their car brands and now are starting to focus on the hallowed truck market which used to be the exclusive domain of the domestic maker? Should be interesting to see how the next few years shake out for the domestics once the foreign carmaker starts perfecting and eventually dominating the truck market. Will they then turn back to cars ? I hope they get their butts in gear well before then....
P.S. I'm in the automotive field so I study all the angles and definitely have a vested interest in what the future holds for the domestic carmaker !!
P.S. I'm in the automotive field so I study all the angles and definitely have a vested interest in what the future holds for the domestic carmaker !!
05-10-2005 | 12:34 PM
#31
TECH Veteran
Joined: Feb 2004
Posts: 4,231
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From: Phoenix, AZ Hometown: Aberdeen, SD
Originally Posted by 95zpro
The only domestic company that is doing moderately well (and I use the term domestic because of their Mercedes ties) is Dodge.
06-05-2005 | 09:16 AM
#32
Originally Posted by Mike K.
yes!!!! That is what is wrong GM cars really are ugly so nobody wants them, why didn't the camaro and trans am sell that well?? because they don't look as good as the stangs and the majority of people don't function as "function type" of people but rather as "form type"
If they would just start making some cool cars they would sell again.
If they would just start making some cool cars they would sell again.
Totally agree with the ugly thing with the exception of the Camaro and T/A styling. Judging by statements made...sounds like you need to make yourself a hybrid car(Stang w/LSx). At any rate, I had to respond to the looks part. I know that was only your opinion but I have to say something. I think most people will agree that it wasn't the styling of the F-bodies that killed them it was the marketing strategies(or lack thereof), and they targeted the wrong consumer demographic with the price. I think the cars are a little more appealing to a younger crowd and they priced it way out of most younger folks grasps.
**************BACK ON TOPIC**************
Wouldn't this make it an opportune time to invest in GM then? Seems to me that they are a company that is currently failing but I don't see them going completely out of the picture...if anything they might just be setting themselves up for a serious rebound? Of course that being that someone(s) helps them to realize the erorr of their ways.
Justin
