
2008 will be the year that both General Motors Corp. (NYSE: GM) and Ford Motor Co. (NYSE: F) went down in recent history as the complete sandbags those companies have really become. Both are losing money hand over fist (save for Ford's most recent profit surprise), and are struggling with trying to provide vehicles customers actually want to buy -- as distinct from vehicles they were projecting to produce.GM CEO Rick Wagoner said recently that a GM bankruptcy won't be coming, although the automaker then announced it would be laying off even more workers as it digs and scratches its way to some type of profitability. A question then came up in the market again: would a foreign auto company be willing to take a stake in either American icon? How about those up-and-coming Chinese automakers who are cranking out fuel-efficient cars by the boatload and could be seen as very eager to enter the U.S. market?
Not so fast -- according to The New York Times, Chinese automakers are not interested. Not interested in equity stakes or even buying asset pieces from either American automaker. GM's recent sale notice for its struggling Hummer division and Ford's recent sale of Volvo didn't even register on the radars of Chinese auto companies, according to the report.
It's hard to see any company buying Hummer (except a military contractor) with global fuel prices where they are, but Volvo would be a neat catch for a company wanting to expand beyond a single global region. Ford doesn't have a buyer yet, but a deal could be announced any day now. Still, Chinese automakers may be smarter than to partner with or buy into two currently dead weights in the vehicle business. There are plenty of other global auto partners besides GM and Ford.











Reader Comments (Page 1 of 1)
7-19-2008 @ 10:49AM
Evab said...
I bought a 2007 Pontiac and it will be the last GM I will buy. The dealer lied to me when buying the car, defrauded me on my trade , delivered the car covered in acid rain and later told me that it was not thier problem. The salesmans did not know the car. The service department did not know the car. I called customer service at Pontiac and they did absolutely nothing . Since I am telling everyone about my experience , and most people are already are driving Toyotas never to return to General Motors cars. Its really sad.
7-21-2008 @ 11:54AM
jpdr1100 said...
Why would a military contractor want to buy Hummer? The actual military version, and even its civilian cousin, the H1, have both been out of production for years. The Hummer GM is selling produces nothing more than rebodied Chevy SUVs.
7-21-2008 @ 12:31PM
Joey said...
Women do represent 65% of new car buying purchases and influence 95% of new car buys yet GM's management is over 90% men. GM should have started to change its employee makeup to accomodate for targeting their new buyer to the industry - women (this should have occurred 20+ years ago). I remember in 2006, GM took its advertising contractors and fired and demoted almost every women in the advertising field and replaced them with men. GM's men wanted to work with male advertising executives. The result, GM's sales for the brands affected by the switch dropped by more than 40%. So why are these men who made this terrible business decision still there? Is this fair to GM stockholders, especially since so many women own GM stock? If getting rid of women decreases sales, what would getting rid of the men and adding women to GM do for sales? Would GM finally see a positively changing sales track? Would GM's stock that dropped so quickly finally turn around because their target market is being taken care of and their needs met?
7-21-2008 @ 12:50PM
Cindy Martin said...
In regards to Joey's comment, that change must have happened in May of 2006. That is when GM switched field agency work for Buick, Pontiac, and GMC to a company in Birmingham, Alabama. I heard that many of the Regional Directors of Marketing Management recommended that they only work with men. This way they could still go golfing and to the Gentleman Clubs with the boys.
7-21-2008 @ 3:57PM
jpdr1100 said...
If you gals think that GM's sales drop is due to a change in advertising agencies then you know little about how the business works. And I would think even women would be somewhat insulted by your implications.
7-21-2008 @ 4:39PM
John said...
It amazes me that you take such glee in the failings our domestic pioneers in the auto industry only to patronize the chinese and their third world approach to manufacturing as it pertains to dirty coal technology and the calous disregard for the environment and in many respects the well being of their workforce.