Will GM Survive?
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Will GM Survive? - 6/26/2008 6:13:34 AM
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Hummer Dog
Posts: 57
Joined: 5/16/2008
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GM came close to filing bankruptcy during the early 90s, but I think they are in worse shape now. Their stock has collapsed in the last few days, their credit ratings have been lowered and now the "experts" are recommending a belated sell on the stock. You need to go back to 1974 to see a stock price this low.
Once this downward momentum has started, it''s tough to stop, and could become self-fulfilling. Do you think they have enough time to turn the corner?
I can''t imagine a GM collapse, they almost certainly would get bailed out by the feds. There are automotive suppliers in nearly every state in the nation, the effect of a GM shutdown would be catastrophic.
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RE: Will GM Survive? - 6/26/2008 7:35:16 AM
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Doc Olds
Posts: 3811
Joined: 7/11/2007
From: Boat Town USA (Michigan 48045)
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Foreign trash, the route of all evils.
Please notice that I did not use the term jap crap. 
They could always follow Ford (worst position of the big three today) and cancel or sell the Hummer line all together just after spending 74 million on the Batton Rouge LA plant to build the H3T?? 
Reign in the paranoia people, it is still gonna get worse before it gets better. Here in MI we hit the bottom (no where but up now), some of you guys have not got there yet. 
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RE: Will GM Survive? - 6/26/2008 8:47:22 AM
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3hummers
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Taxing the oil companies is the most ridiculous, ignorant thing the government could do. The oil companies make an 8% profit margin. For the risk they take that is amazingly thin. The only reason the profits seem so large is that the volume is huge. Look at the gross revenue. Only an economic imbecile would remove the wherewithal from the oil companies to develop more advanced recovery technology. The real problem is the restriction on supply. Recovering proven reserves in the most stable oil producing market in the world by the safest, cleanest oil industry in the world is the answer to bringing oil prices under control and supply more plentiful. Guess what...that is right here in the good old USA with American companies. The enviro-nuts and libs have put more oil off limits in this country than the Saudis have to produce. The Dems and Libs want to force everyone to live how they want us to and this is one of the ways they are going to do. Break the US and Americans by spending our money on foriegn produced oil in an artificially restricted market in the name of you guessed it "saving the planet". That is what makes me sick...and the gullible ignorance of a huge swath of the American public.
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2006 H1 Alpha wagon
2000 H1 Slantback
1997 H1 wagon
2008 H3 Alpha
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RE: Will GM Survive? - 6/26/2008 9:18:43 AM
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Camou2
Posts: 210
Joined: 6/24/2007
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In the past few quarters GM has had between $28B and $32B (that B is for Billions) in cash and cash equivalents. They lost about $3B during the 1st quarter of 2008. Will it get worse? Maybe? But they really have a substantial ability to survive.
P.S. The H3T is being built in the H3 plant in Shreveport, LA. The H4 or HX, whichever it will be called, is already designated for production in a Mexico plant.
I certainly agree with 3Hummers on the taxing of oil companies and his comments. In fact maybe this high cost of oil will really save our country instead of the reverse. Many companies are now moving production back to the U.S. because of the high cost of ocean transporting. Battery companies, furniture companies that I am personaly aware of have added over 4,000 new jobs in the past quarter to move production back into the U.S. Maybe all of the foreign cars that are sold in the U.S. but not manufactured here will go away. That surely would not hurt GM, Ford or Chrysler.
The cost to transport a 40 foot cargo trailer from Southeast Asia markets has gone from $3,000 to $8,000. Maybe it will go to $20,000 and then watch U.S. manufacturing jobs climb.
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2006 H2 & 2008 H3 Alpha
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RE: Will GM Survive? - 6/26/2008 9:24:29 AM
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Doc Olds
Posts: 3811
Joined: 7/11/2007
From: Boat Town USA (Michigan 48045)
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Shreveport....Red Stick, what''s the difference? 
I am not worried, just pointing out the investment has been made, they need to reap some returns, and be SMART about it, no noid!!
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RE: Will GM Survive? - 6/26/2008 9:48:03 AM
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HummersForAmerica
Posts: 20
Joined: 6/22/2008
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Yeah The General will be just fine their already on the road to recovery. Dont believe the neysayers about market share, that aint true, he** every other car I see in TX is full size GM truck or SUV.
Theirs two real problems thogh and thats all them liberal bugeaters buying little foreign cars and then the cost of gas. When the he** is the Goverment going to do something about it? Four bucks a gallon is rediculus, makes me wonder what kind a man we need running ther country next.
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RE: Will GM Survive? - 6/26/2008 10:06:01 AM
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3hummers
Posts: 11822
Joined: 9/23/2007
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The 40 billion is after they have paid tens of billions in tax. The government doesn''t tax away everythin yopu make eitheror you wouldn''t work. take away the incentive for the oil companies and they won''t drill new fields, spend money on exploration, technology etc they will just pump oil from known fields until they are dry. Being in business is about being compensated for risk. I develop real estate and right now there aren''t many opportunities because the risk is so great. If I can''t get an acceptable return I don''t do deals, which puts hundreds and thousands of plumbers, electricinas, carpenters, etc out of work. No jobs, no money, houses foreclosed on cars gone to the repo man....Right now my volume is down because the risk is too great, capital too expensive and the margins too small. I don''t have a fraction of the risk the oil companies do and I wouldn''t touch a real estate development deal for an 8% return. There is nothing wrong with being a salaried employee who works for an honest living but you have to understand the entreprenurial side of the business equation. The side that creates all those jobs. Pass a windfall profits tax on the oil comapnies and see what happens to prices, available supply, etc. It has happened before with predictable results so lets do the same dumb thing again.
As far as who we need in the White House. We need somebody with balls. We need someone that will say I am going to do the right thing for America and Americans and I am going to steamroll whoever gets in my way. Obama is already proving to be a typical weazel politician. Not sure McCain is much better but at least he doesn''t want tax the country into oblivion.
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2006 H1 Alpha wagon
2000 H1 Slantback
1997 H1 wagon
2008 H3 Alpha
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RE: Will GM Survive? - 6/26/2008 10:32:05 AM
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HummersForAmerica
Posts: 20
Joined: 6/22/2008
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aMEN to that. You think things are bad now wait til Barock HUSSEIN Obamma gets elected. hello eight dollar gas and more forine cars everywhere. No way HUSSIEN Obamma will put America first, hes already pledged alegience to the Muslim countries. Thats why no flag lapel pin. McCain is no W, but hes probably the best hope GM has.
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RE: Will GM Survive? - 6/26/2008 10:55:02 AM
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HummerGuy
Posts: 6684
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I agree with 3hummers. They may make $40 billion, BUT, I would bet that 8% profit margin is lower now then it was 10 or 15 years ago. It may be easy to talk about earning in dollar amounts, but it''s not the dollar amount they make that matters, it''s the percentage and profit margin.
If you run your own company and make $1,000,000 in revenue, and you only see a 8% profit after operating expenses, that means of that $1,000,000 you made, you only get $80,000 in profits, out of a million bucks!
I''m sorry, but If that was my company, all it would take would be 1 lawsuit to take that $80,000 in profit and throw it out the window.
If the government taxed the oil companies, guess who would pay for it; WE would, plain and simple, and I doubt anybody could deny they would work that into the price of a gallon of gas.
Here in Chicago, if you live in Cook county, you are paying three taxes on gas; County, State and Federal. I would love to have a 4th one If I have to come to the city, I make certain I have a full tank before I leave my county. There''s no way I''m paying $4.50+ a gallon when I can go 2 miles away from my house and pay $4.15.
Would it be nice to get a piece of that $40 billion? Yup, sure would, because maybe that could go towards helping Vets or funding education bills, but in reality, the money would go to fund one thing; the war, and it would be an endless vicious cycle. More money to fight the war, more war, which drives up gas prices, which gets taxed higher, which makes even MORE money to fight the war, which drives up prices, etc.
That''s the way I see it.
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RE: Will GM Survive? - 6/26/2008 10:55:59 AM
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ONALLFOURS
Posts: 98
Joined: 6/9/2008
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You only have to take one year of political science to know that if this were a corporation, and not a country, it would have been shut down years ago. BUT moving on to the oil companies not paying ANY tax on a 40 billion dollar profit is not fair to Joe us. What would be the harm of gas being HALF the price it is now with a 20 billion profit? They are getting away with it, so why not ride the cash cow until it''s back is broken.
We wont solve it here, but I do hope GM makes it. Maybe they need better management, they could certainly use better advertisements. The government played it''s part in helping them get to where they are, only seems right they help. As far as the flood of non American cars, President Jimmy Carter did his best to help put a stop to it, but that only lasted the 4 years he was in office. The witch hunt mentality on American made SUV''s and those that buy non American cars don''t see themselves as part of the problem. To easy to blame some one else for their ignorance.
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