General Motors Corp. (NYSE: GM) CEO Rick Wagoner told the media this week that there would be no bankruptcy for the beleaguered automaker. While GM and rivals wind down SUV production and see what they can do with the glut of big, gas-hogging trucks in inventory, Wagoner assured the world that GM would not be shutting down any of its brands as a result of its current financial difficulty.And then came the standard, boring corporate speak from Wagoner when he said that the company's focus is on evolving its various brands to make them more profitable and meet consumer needs.
Well, duh. Isn't that the SOP for every automaker during every quarter? GM has not marketed itself well to the gas-conscious crowd nor was it in a position to change its product mix swiftly as consumer attitudes towards gas efficiency changed almost overnight.
With GM shares trading for under $10 now -- the lowest price in about 50 years -- the company can't spin more rhetoric. It's put up or shut down time. That is, unless gas prices go down and the economy improves. I won't take that bet with anyone for the foreseeable future. Will you?











Reader Comments (Page 1 of 2)
7-11-2008 @ 12:07PM
George Moore said...
G.M is no different than any other car maker at this point in time. The stock in my opinion hasn't quite bottomed out just yet. I can assure you when it does it will be a steal. With G.M. getting set to celebrate their one hundreth anniversary this fall hold on to your hat's. Don't believe all that the press has to say, being a Chevrolet dealer I can assure you that the rennaisance of G.M. is just starting. Stay tuned.
7-11-2008 @ 12:34PM
gumbo koontz said...
Brian
All the works GM did to save costs and boost sales will not bear fruit until late 2009 or later. UAW is not in any hurry to start the agreed cost savings or that they can not go any faster, I dont know. it takes a while for a big ship to turn around as any should know. GM already built a long list of fuel efficient models at around 30 mpg. Ford has only Focus and probably Fusion to show for that GM already has Aveo, Cobalt, HHR, Impala, oh yeah!, and a few others Everyone is still running off to Toyotas and Hondas for reasons like sympathy to UAW and revenge probably.
I bet that many buyers are upset with what GM and Ford had done to UAW and the brotherhood! so they left for Toyotas and Hondas that are much worse on employees with whiplashes and chains...
7-11-2008 @ 12:36PM
gumbo koontz said...
My Dearest Brian
All the works GM did to save costs and boost sales will not bear fruit until late 2009 or later. UAW is not in any hurry to start the agreed cost savings or that they can not go any faster, I dont know. it takes a while for a big ship to turn around as any should know. GM already built a long list of fuel efficient models at around 30 mpg. Ford has only Focus and probably Fusion to show for that GM already has Aveo, Cobalt, HHR, Impala, oh yeah!, and a few others Everyone is still running off to Toyotas and Hondas for reasons like sympathy to UAW and revenge probably.
I bet that many buyers are upset with what GM and Ford had done to UAW and the brotherhood! so they left for Toyotas and Hondas that are much worse on employees with whiplashes and chains...
8-01-2008 @ 1:56PM
Gumby said...
My Dearest Brian
All the works GM did to save costs and boost sales will not bear fruit until late 2009 or later. UAW is not in any hurry to start the agreed cost savings or that they can not go any faster, I dont know. it takes a while for a big ship to turn around as any should know. GM already built a long list of fuel efficient models at around 30 mpg. Ford has only Focus and probably Fusion to show for that GM already has Aveo, Cobalt, HHR, Impala, oh yeah!, and a few others Everyone is still running off to Toyotas and Hondas for reasons like sympathy to UAW and revenge probably.
I bet that many buyers are upset with what GM and Ford had done to UAW and the brotherhood! so they left for Toyotas and Hondas that are much worse on employees with whiplashes and chains...
7-12-2008 @ 12:20AM
Gumby said...
My Dearest Brian
All the works GM did to save costs and boost sales will not bear fruit until late 2009 or later. UAW is not in any hurry to start the agreed cost savings or that they can not go any faster, I dont know. it takes a while for a big ship to turn around as any should know. GM already built a long list of fuel efficient models at around 30 mpg. Ford has only Focus and probably Fusion to show for that GM already has Aveo, Cobalt, HHR, Impala, oh yeah!, and a few others Everyone is still running off to Toyotas and Hondas for reasons like sympathy to UAW and revenge probably.
I bet that many buyers are upset with what GM and Ford had done to UAW and the brotherhood! so they left for Toyotas and Hondas that are much worse on employees with whiplashes and chains...
7-11-2008 @ 1:26PM
Gumby said...
My Dearest Brian
All the works GM did to save costs and boost sales will not bear fruit until late 2009 or later. UAW is not in any hurry to start the agreed cost savings or that they can not go any faster, I dont know. it takes a while for a big ship to turn around as any should know. GM already built a long list of fuel efficient models at around 30 mpg. Ford has only Focus and probably Fusion to show for that GM already has Aveo, Cobalt, HHR, Impala, oh yeah!, and a few others Everyone is still running off to Toyotas and Hondas for reasons like sympathy to UAW and revenge probably.
I bet that many buyers are upset with what GM and Ford had done to UAW and the brotherhood! so they left for Toyotas and Hondas that are much worse on employees with whiplashes and chains...
7-11-2008 @ 12:42PM
gumbo koontz said...
GM and Ford paid better to workers than Toyotas and Hondas so it obviously mean that GM and Ford had no choice but to use shoddier parts in cars to make up the differences. UAW workers with fatter wallets than Toyota or Honda workers' seem to be a lousy selling point all along. So GM and Ford let thousands of UAW workers go home so to better able to put in better parts in cars that lasts longer, yet buyers are upset with the big losses UAW suffered . So buyers went instead to Toyotas and Hondas out of spite . You tell me, Brian my dearest, where the logic lies??
7-11-2008 @ 12:44PM
gumbo koontz said...
Buyers want GM and Ford to keep UAW workers and keep losing money . Buyers couldnt care less about GM and Ford shareholders and bondholders as they are outta sight , pffffffT! How do you explain to car buyers all that, my dearest Brian??
7-11-2008 @ 12:48PM
gumbo koontz said...
It really dont help a bit with selling points as long as you , my dearest Brian , keep bitchin' about possible bankruptcy of GM and Ford. You, my dearest Brian, just dont know how to write about GM and Ford as you are apparently uninformed and uncaring. You are nothing but my favorite punching bag, my dearest Brian!@
7-11-2008 @ 12:49PM
Joel Sassalee said...
GM needs to cut payroll starting with the unclassified workers or workers that make more than $200,000 per year. There is a lot of duplication with unclassified workers as well. Each regional office has three Sales and Marketing Directors and three Marketing Directors. Why not get rid of the Marketing Directors and let the Sales and Marketing Directors do both jobs. Also, GM pays salaries of their contractors. How did GM end up signing a contract for this? All contracts should be approved by the board of directors so when situations like the market going from $40 per share to $10 per share in one year, GM has no restrictions. Also, if GM opens up its workforce to women, African Americans, and Hispanics, they will not only be more representative of their consumer, but opening up the pool of talent will bring in fresh ideas, different perspectives, and salaries that are more representative of other companies. Also, GM spends a lot of money in lobbying and has an office in Washington DC. Is this really necessary given GM is now in terrible financial times. Should not that office close and the money be used to keep GM afloat? Also, does GM need all those engineers? Maixmizing shareholder equity is one of the requirements of a company and can result in imprisionment if the company cares more about their own gain and ignore what is best for investors.
7-11-2008 @ 12:48PM
gumbo koontz said...
It really dont help a bit with selling points as long as you , my dearest Brian , keep bitchin' about possible bankruptcy of GM and Ford. You, my dearest Brian, just dont know how to write about GM and Ford as you are apparently uninformed and uncaring. You are nothing but my favorite punching bag, my dearest Brian!@
7-11-2008 @ 12:50PM
gumbo koontz said...
After 9/11 and all that flag waving on SUVs and PickUps in the Dixieland for years on the stretch, you, my dearest Brian, are too ready to abandon GM and Ford in the name of rickshaw competition1!!
7-11-2008 @ 12:52PM
gumbo koontz said...
You are playing too much with Voodoo on somene, arent you? Wake up, zombie Brian.. start writing about hopes and comebacks of GM and Ford!
7-11-2008 @ 1:00PM
Stephen Lang said...
GM doesn't have to answer for the stock price, they just have to worry about the fundamentals and the stock will take care of itself (for better or for worse.)
I do think that GM is in much better shape than Ford, as they've done a lot more in terms of newer and more fuel-efficient automobiles.
This current crisis doesn't help though, I'm sure it's not something they predicted 3-4 years in advance.
7-11-2008 @ 1:31PM
gumbo koontz said...
GM and Ford stories is one of the most bizarre and extremes!! It went from overgenrosity toward UAW to the slaughter house of pigs!! a lot of blood letting! Where is the middle ground? UAW probably never wanted the middle road with shareholders on the opposite lane. UAW always wanted the whole road hog to themselves only to end up in the slaughter house. Bizaree!!
7-11-2008 @ 1:32PM
gumbo koontz said...
GM and Ford stories is one of the most bizarre and extremes!! It went from overgenrosity toward UAW to the slaughter house of pigs!! a lot of blood letting! Where is the middle ground? UAW probably never wanted the middle road with shareholders on the opposite lane. UAW always wanted the whole road hog to themselves only to end up in the slaughter house. Bizaree!!
7-11-2008 @ 1:32PM
gumbo koontz said...
GM and Ford stories is one of the most bizarre and extremes!! It went from overgenrosity toward UAW to the slaughter house of pigs!! a lot of blood letting! Where is the middle ground? UAW probably never wanted the middle road with shareholders on the opposite lane. UAW always wanted the whole road hog to themselves only to end up in the slaughter house. Bizaree!!
7-11-2008 @ 5:44PM
A D said...
I don't get it.
I write stuff about Toyota & Japan and how they lie about currency and truth be told, anybody that follows the finances can see that they do and I'm retricted by AOL or othee stock blogger sites to one post a day or some silly cookie erase stunt so I can post on sites like this.
And in the meantime all these sites get bombarded by Anti-GM nonsense.
Well off course the internet is now an advertiser paid entity. And we stupid Americans would rather dump on our neighbors to justify buying a Honda.
But isn't anybody seeing through the utter stupidity that we are doing to ourselves?
7-12-2008 @ 5:02PM
suprg1969 said...
Yeah no bankruptcy comming and their gold at the end of a rainbow to. GM is out of touch and living in fantasy land.
7-12-2008 @ 6:34PM
Chris said...
yes, i think gm is a great buy at $9.