Author
|
Topic: GM shares reduced to junk status
|
|
Cartman
rabble-rouser
Babbler # 7440
|
posted 05 July 2005 07:41 PM
http://abcnews.go.com/Business/wireStory?id=904284&CMP=OTC-RSSFeeds0312They are really slugging it out with discounts in order to move stock. This looks really desperate. quote: General Motors Corp.'s sales soared 41 percent in June to their highest monthly total in nearly 19 years thanks to a heavily promoted discount that allowed customers to buy cars and trucks at the employee rate, new sales figures showed Friday.
From: Bring back Audra!!!!! | Registered: Nov 2004
| IP: Logged
|
|
|
|
Boom Boom
rabble-rouser
Babbler # 7791
|
posted 05 July 2005 08:33 PM
Never had experience with GM myself, so I'm not the one to ask. I checked out their new product line last month, it all looked great, especially the new Pontiacs. The Pontiac Pursuit and G6 look good. Everytime I was in Ottawa except once I rented a new Cavalier - fun to drive. The other car was a loaded Toyota Corolla, and I didn't want to give it back.Of all the cars I've owned, only the Sunbeam needed more than the usual parts and maintenance, and that's because it was raced and rallied. I own a new Mazda small truck, needs warranty maintenance once a year, I expect to get at least ten years out of it. Why didn't I buy a GM or Ford? The dealers wouldn't negotiate. Ford trucks in northern Quebec are flying off the lot. It's sticker price or take a hike. So I did, and got a new Mazda leased with no money down. Dodge trucks are way overpriced. The GM dealers wanted an insane down payment ($4000.) for their precious small truck. Actually, so did Ford, but they still can't keep them in stock. Go figure.
From: Make the rich pay! | Registered: Dec 2004
| IP: Logged
|
|
|
|
Dex
rabble-rouser
Babbler # 6764
|
posted 05 July 2005 09:48 PM
Although the GM employee discount has sold them a lot of cars, it's cost them boatloads of money. My bet says that it's their way of phasing out the employee discount. Gradually, they'll inflate the prices of their cars to factor in the discount and then everybody will be paying the same price.The whole quality thing that's trotted out by the NA carmakers is a sham, too. They're forever telling people that their cars are very good quality as they roll off the line. Well, sorry to break it to you folks but, the days when it was a big deal when a brand new car started reliably and went without recall passed you by about 20 years ago. It's like cheering on a teenager for no longer messing their drawers. You look at longer term resale value and repair histories and GM et al are absolutely pathetic (as are many of the European makers). I think I mentioned this elsewhere at babble, but the latest cars issue of Consumer Reports ranked all of the car brands (i.e., GMC, oldsmobile, pontiac, as opposed to just GM, Ford) according to quality and the top NA brand was I think 19th. Having been locked out of the truck market for decades due to massive tariffs, the Japanese car manufacturers are just now getting full bore into the truck market. The NA manufacturers are now addicted to discounts (they can't get rid of them now that they've offered them for so long; try to get 0% from Honda or Toyota and they'll just laugh at you) and higher margin SUVs (which are on the way down). It's game over. [ 05 July 2005: Message edited by: Dex ]
From: ON then AB then IN now KS. Oh, how I long for a more lefterly location. | Registered: Aug 2004
| IP: Logged
|
|
|
Boom Boom
rabble-rouser
Babbler # 7791
|
posted 05 July 2005 10:29 PM
Top selling US vehicles of 2004, from: http://msnbc.msn.com/id/5582238Ford F-Series 432,969 Chevrolet Silverado 322,907 Dodge Ram pickup 223,609 Toyota Camry 213,625 Honda Accord 192,106 Ford Explorer 168,059 Honda Civic 162,483 Ford Taurus 144,035 Chevrolet Impala 139,460 Dodge Caravan Note the top 3 vehicles are pickup trucks. edited to add: perhaps trucks sell so well because they're dual purpose vehicles: work and pleasure. [ 05 July 2005: Message edited by: Boom Boom ]
From: Make the rich pay! | Registered: Dec 2004
| IP: Logged
|
|
|
|
maestro
rabble-rouser
Babbler # 7842
|
posted 05 July 2005 11:08 PM
GM's biggest problem is medical. The amount they put into medical for current and retired workers (and their families) is costing them billions. quote: GM: Repair health care By Ed Garsten / The Detroit News Thursday, February 10, 2005CEO urges U.S. to help ease skyrocketing tab: Automaker lobbies up to 16 states to cut costs CHICAGO -- General Motors Corp., facing a $1 billion increase in medical costs this year, is taking the offensive on health care. In a speech to the Chicago Economic Club today, GM Chairman and CEO Rick Wagoner is expected to call on government and business leaders to urgently push for broad reforms to the U.S. health care system. GM foots the health care bill for 1.1 million workers, retirees and family members, which cost the company about $5.8 billion last year. The automaker expects the tab to grow to almost $7 billion this year, severely cutting into its bottom line.
Those who think we should privatize medicare to cut costs should have to read this story over and over again. The Canadian single payer system is much more efficient than the hodge-podge of HMO's, insurers, and what-have-you in the US.
From: Vancouver | Registered: Jan 2005
| IP: Logged
|
|
|
|
|
|
|
|
|
|