Thread: GM going bust?

GMAC suffer crippling blow as it becomes clear UK's B&B won't be good for the purchase of the $4BN per year of GMAC loans:

https://teakdoor.com/us-domestic-issu...tml#post679788

Could be the knockout blow this...

Originally Posted by Texpat

GM may bring the production version of the Chevrolet Beat to the U.S.,

Its a nice looking car too....

Honda have really hit it out of the park, at least as far as the US market. They resisted the temptation to deliver big SUVs and trucks, and kept with their core fuel-efficient products.

As a result, they are actually on a growth pattern, and not because of hybrids. They will turn out to be the big winner in this energy price crisis. Toyota is too top heavy, with Lexus, big SUVs, big trucks, everything. Yes, they have the top selling hybrid, the Prius, but as a complete product line, no manufacturer is as well positioned as Honda, with the exception of the Koreans, which do not enjoy the same market share or quality reputation. But I do look for Kia and Hyundai to benefit too.

Big losers: everyone else.

Originally Posted by Spin

Its a nice looking car too....

Nice-looking car?

^Before the frontal impact collision perhaps...

Originally Posted by chinthee

Honda have really hit it out of the park, at least as far as the US market. They resisted the temptation to deliver big SUVs and trucks, and kept with their core fuel-efficient products.

As a result, they are actually on a growth pattern, and not because of hybrids. They will turn out to be the big winner in this energy price crisis. Toyota is too top heavy, with Lexus, big SUVs, big trucks, everything. Yes, they have the top selling hybrid, the Prius, but as a complete product line, no manufacturer is as well positioned as Honda, with the exception of the Koreans, which do not enjoy the same market share or quality reputation. But I do look for Kia and Hyundai to benefit too.

Big losers: everyone else.

Toyota is selling the hell out of the Yaris (34/40mpg base price about $11,000) here. You see many more Yaris than the Honda Fit (27 city/34mpg base price $14,750) I don't know anyone in Honda sales but the base sounds too high.

what about the cars running on air. I can't believe anyone is not digging that one further. Amazing invention, yet so simple.

M, Ford May Face Bankruptcy on Slowdown, S&P Says (Update2)
By Jeff Green and Marco Bertacche
Oct. 10 (Bloomberg) -- General Motors Corp., Ford Motor Co. and Chrysler LLC may be forced into bankruptcy by slowing economies and dwindling U.S. auto sales, Standard & Poor's analyst Robert Schulz said today.
``Macro factors could overwhelm them at some point'' even with the three biggest U.S. automakers committed to turnarounds, Schulz said in a Bloomberg Television interview. S&P said yesterday it may cut GM and Ford debt deeper into junk on forecasts for 2009 auto demand falling to the lowest since 1992.
GM, Ford and Chrysler are under pressure as the worsening global credit crisis makes it harder for buyers to get loans and dealers to finance their operations. U.S. industrywide sales tumbled 27 percent in September, the most in 17 years.
With all three companies working to boost cash, any bankruptcy filing would be a last resort, not a ``strategic'' decision, said Schulz, who is based in New York.
``We don't see that as something they would choose,'' he said.
S&P said yesterday that its debt ratings for GM and Ford, already at six steps below investment grade at B-, may be lowered again because the automakers face a ``serious challenge'' in 2009.
That prospect helped send GM to a 58-year low yesterday in New York trading, at $4.76, while Ford reached $2.08 a share, its lowest since 1982. In early trading today, GM slid to $4.60 and Ford slipped to $2.03. Chrysler is closely held.
GM will fall further, Barclays Capital analyst Brian Johnson said in a report today, cutting his stock price for the Detroit-based automaker to $4.
Cash Needs
``With auto sales stalled in the U.S. and beginning to contract in the rest of the world, we believe GM's cash needs are increasing,'' wrote Johnson, who is based in Chicago. ``Moreover, the downside risk of greater decline in worldwide auto sales driving greater cash needs is increasing.''
GM and Dearborn, Michigan-based Ford lost a combined $24.1 billion last quarter. GM last posted an annual profit in 2004, while Ford hasn't had a full-year profit since 2005.
``Bankruptcy is not an option GM is considering,'' spokeswoman Renee Rashid-Merem said yesterday. ``It would not be in the interests of our employees, stockholders, suppliers or customers.''
The automaker said it still expects to add $15 billion in liquidity by the end of next year, including speeding up plans to cut $10 billion in costs.
Ford's Liquidity
Ford said yesterday it is reviewing its liquidity and will give an update when third-quarter results are released. The second-largest U.S. automaker borrowed $23.4 billion in 2006 so it could absorb the cost of shutting factories and cutting jobs while it develops new models.
Auto-market conditions are worsening, researcher J.D. Power & Associates said yesterday, estimating that U.S. industrywide sales will fall to 13.6 million this year and 13.2 million in 2009. Last year's total was 16.1 million.
Global demand in 2009 may ``experience an outright collapse,'' according to J.D. Power, which is based in Westlake Village, California.
GM's 8.375 percent note due July 2033 fell 3.5 cents to 24.5 cents on the dollar yesterday, yielding 34 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Ford's 7.45 percent note due July 2031 declined 0.4 cent to 34 cents on the dollar, yielding 22 percent.
To contact the reporters on this story: Jeff Green in Southfield, Michigan, at jgreen16[at]bloomberg.net; Marco Bertacche in Milan at mbertacche[at]bloomberg.net.

An update of sorts

here you go bumped because it's more relevant

Bump:

Squirrel mentioned this thread earlier today. Interesting to see some posts about what would happen back then.

^ Nobody mentioned Chrysler in the thread either.

Ford and GM.