Is anyone worried about the future of GM???
Thread Starter
Member
Joined: 06-14-2008
Posts: 73
From: White Plains, NY
Is anyone worried about the future of GM???
I've been hearing alot of talk, and it has me thinking...Should I be worried about the future of GM? I pick up my HHR SS tomorrow and I'm wondering about maintenance, repairs etc. for the future.
Senior Member
Joined: 07-21-2006
Posts: 1,708
From: Ft Walton Bch FL
I think we should worry about the entire American automotive industry. They're all in financial trouble. They never want to react quick enough to consumer needs and wants. They still thought full size pickups and SUVs would carry them through!
Member
Joined: 05-22-2008
Posts: 39
From: Toronto
IMO, I think that we all know what GM needs to do (get smaller), it's the actual execution, the "getting there" that is going to hurt.
Toyota is outselling GM with approx half the number of dealers.
GM's problem is the word "excess", as in excess plants, and manufacturing capacity; excess number of brands; excess dealers in the network; excess inventory on hand-for most models......etc, etc.
Near my home, there's 5 GM dealers within square 8 km (5 sq mi). Theres 1 Toyota and 1 honda dealer in the same geography.
It will be tough, but now that GM IS making decent cars, when they do finally become smaller, more inovative, and desired to the point of creating demand, we will all be there (here) to witness it.
To answer your question, IMO, there's too many spinoff jobs and manufacturing jobs dependant on the industry in general. Because GM is the one with the most active capacity in North America, I doubt that they're going anywhere, anytime soon. I also doubt that state, provincial, and federal govts. of the US, Canada, and Mexico would not TRY to assist them if it got that bad (tax incentives etc.).
But hey, never say never.....
Toyota is outselling GM with approx half the number of dealers.
GM's problem is the word "excess", as in excess plants, and manufacturing capacity; excess number of brands; excess dealers in the network; excess inventory on hand-for most models......etc, etc.
Near my home, there's 5 GM dealers within square 8 km (5 sq mi). Theres 1 Toyota and 1 honda dealer in the same geography.
It will be tough, but now that GM IS making decent cars, when they do finally become smaller, more inovative, and desired to the point of creating demand, we will all be there (here) to witness it.
To answer your question, IMO, there's too many spinoff jobs and manufacturing jobs dependant on the industry in general. Because GM is the one with the most active capacity in North America, I doubt that they're going anywhere, anytime soon. I also doubt that state, provincial, and federal govts. of the US, Canada, and Mexico would not TRY to assist them if it got that bad (tax incentives etc.).
But hey, never say never.....
Banned
Joined: 10-24-2006
Posts: 1,761
From: The Show-Me State
I wouldn't worry about buying a Chevy, but I would worry about buying a Hummer just because if the brand goes away, the resale values tank.
People tend to forget that GM has some of the largest reserves of cash of any company in the world. They also have about the highest liquidity of any company in the world. Although a tender offer could be made for the company through a major takeover bid, the cost of managing that large of an organization privately is something that NO ONE in their right mind would even think about. Chrysler LLC has had enough problems and they aren't anywhere NEAR as big as GM on the scale.
Fact is, GM isn't going away. They're reducing capacity in lines that aren't going to produce profitable gains in the future and investing capacity in lines that will. GM is arguably in the best position among the Big 3 for the market that's ahead in the '10s and will probably do very well in the next decade.
One thing I get really tired of is hearing how the Big 3 didn't prepare enough for gas prices to go up and how they had too many big vehicles they depended on for profit. It's a really stupid argument. They built the vehicles that people wanted and made loads of money on them. Toyota and Nissan ALSO built large vehicles, but didn't make any money on them. They STILL build those vehicles and don't make any money on them, yet GM, Ford, and Chrysler all get crapped on for being "wasteful".
In the future, GM and Ford will remain very powerful and very public companies. Chrysler will get bounced around until it either gets bought out again by a major foreign manufacturer like Tata or M&M, or die a slow death. Toyota and Honda will continue to thrive. I see Subaru merging more and more operations with Toyota as Fuji Heavy and Toyota become one. Nissan will follow the path of Chrysler. Whether it happens ten years or twenty years from now, Nissan-Renault will have major problems again.
People tend to forget that GM has some of the largest reserves of cash of any company in the world. They also have about the highest liquidity of any company in the world. Although a tender offer could be made for the company through a major takeover bid, the cost of managing that large of an organization privately is something that NO ONE in their right mind would even think about. Chrysler LLC has had enough problems and they aren't anywhere NEAR as big as GM on the scale.
Fact is, GM isn't going away. They're reducing capacity in lines that aren't going to produce profitable gains in the future and investing capacity in lines that will. GM is arguably in the best position among the Big 3 for the market that's ahead in the '10s and will probably do very well in the next decade.
One thing I get really tired of is hearing how the Big 3 didn't prepare enough for gas prices to go up and how they had too many big vehicles they depended on for profit. It's a really stupid argument. They built the vehicles that people wanted and made loads of money on them. Toyota and Nissan ALSO built large vehicles, but didn't make any money on them. They STILL build those vehicles and don't make any money on them, yet GM, Ford, and Chrysler all get crapped on for being "wasteful".
In the future, GM and Ford will remain very powerful and very public companies. Chrysler will get bounced around until it either gets bought out again by a major foreign manufacturer like Tata or M&M, or die a slow death. Toyota and Honda will continue to thrive. I see Subaru merging more and more operations with Toyota as Fuji Heavy and Toyota become one. Nissan will follow the path of Chrysler. Whether it happens ten years or twenty years from now, Nissan-Renault will have major problems again.
Senior Member
Joined: 03-27-2008
Posts: 132
From: New Mexico
Member
Joined: 06-28-2008
Posts: 62
From: Simi Valley, CA
Nah, I wouldn't worry about it. Even if God forbid, GM goes bankrupt -- worst case is that someone will try to purchase them.
And they will assume all of the liabilities like warranties. Rest easy, GM is not going anywhere. If you can still get your Chrysler serviced after Daimler and now Cerberus have had their way with them -- your HHR will be fine.
Their IP alone is probably worth quite a bundle. Especially any patents related to the Volt.
And they will assume all of the liabilities like warranties. Rest easy, GM is not going anywhere. If you can still get your Chrysler serviced after Daimler and now Cerberus have had their way with them -- your HHR will be fine.
Their IP alone is probably worth quite a bundle. Especially any patents related to the Volt.
Senior Member
Joined: 06-21-2008
Posts: 1,458
From: SE Michigan
I would appreciate a clear explanation on this so I don't feel so stupid!
