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GM faces more harsh news

GM (NYSE: GM), which decades ago had almost 50% of US car sales, may see its share of the domestic market drop below 20% for the first time since the company was formed. It has relied on big sedans, SUVs, and pick-ups for too long. Now, with higher gas prices and a consumer who has no money, the big car firm has to face the music.

If GM has come to this, one question worth asking is whether its was bad management or bad luck that brought the company so low? According to The Wall Street Journal, "Sales of pickup trucks and big sport-utility vehicles -- Detroit's bread-and-butter products -- have been falling for the past few years."

GM's management did not tackle its labor issues until recently. Before that, the car company was built for success but not tough times. Its UAW contracts assumed that things would go well and that the firm could support a large workforce and generous pension plan. A strategy for bad years was never really in place.

GM's other mistake is that it did not use its very broad product line and large number of brands to create and market more mid-sized cars with good fuel mileage. With dozens of different products, more should have been devoted to buyers who cared about gas and did not want vehicles that get less than 20 miles per gallon.

Bad planning has come back to haunt GM.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

Battle of the Brands: Chevy vs. Ford pick-up trucks

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

When it comes to comparing the pick-up trucks of Ford Motor Co. (NYSE: F) and Chevrolet by General Motors Corp. (NYSE: GM), I can honestly say that I've owned both brands. I bought one F-150 off the showroom floor. I also bought one that was very well used. Both my Chevy Silverados were low-mileage, used models. I leased one of them from my dad and the other one I bought from my brother. I have also had opportunities to drive multiple specimens of each brand that were owned by friends or associates. I like both brands as far as their trucks go. Their cars are a story for another day.

To me, Chevy trucks always seem a bit more solid, with interior appointments a little more lush and inviting. Ford trucks seem to focus more on utility and usability within a bit roomier interior. The Chevy trucks always exhibit deep power, easily delivered upon demand. Fords trucks always seem a bit more spunky with their aggressiveness always close under foot. Chevy trucks appeal to the gentleman in me but they've always done any job I asked of them. Ford trucks appeal to the workman in me and they sometimes seem immortal.

Continue reading Battle of the Brands: Chevy vs. Ford pick-up trucks

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Last updated: November 22, 2008: 01:28 AM

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