Skip to comments.GM, a failed investment
Posted on 05/06/2012 5:22:16 AM PDT by Bobbys1963
If you invested more than $100 in a company, would you be happy if your shares were worth only $36? By anyones definition that investment would have been a terrible failure.
Yet, that is how the federal governments investment in General Motors looks. The federal government has put in well over $100 billion into shoring up General Motors, but the entire company, not just what the government owns, was worth only $36 billion on Tuesday.
GM sales have bounced around, rising in March and then falling in April, but investors best guesses for what future sales will be are already in GMs stock price. And surprisingly, a recent Rasmussen poll shows that support for the bailout has been rising and now 44 percent of likely voters say that the bailout was good for America.
The money the government spent adds up quickly . . .
(Excerpt) Read more at philly.com ...
Not only has the Federal Government given GM $100 billion, but the bond holders and stock holders had their multi-billion investments wiped out.
GM was able to stop paying interest to the bondholders and dividends to the stock holders and still if cannot be competitive.
This is what happens when a socialist government and a communist trade union takeover a corporation.
How is that Volt working for you now?
GM should have been allowed to go through Chapter 11 bankruptcy. They should have broken the union contracts and started over without the UAW.
I buy Toyota trucks for precise reason that they are non-union made.
I would have purchased a new GM, Dodge or a Ford last fall except for the fact that they are all union made and bought the Toyota instead. Made in a non-union factory in Indiana.
I am like you. We just purchased a new car to replace our 10 year GM vehicle.
We did not visit a GM or Chrysler dealership in our shopping trips.
I felt that if a company is so incompetent that it let itself go bankrupt, then I have no desire to buy their products.
I have my first Toyota, a Tacoma and love it.
My last truck was a Ford Ranger XLT that gave me almost 10 years with maybe a week total downtime.
And I bet you like the quality of the workmanship on your Toyota better than the UAW cars as well. I will never buy a new GM or Chrysler product again...indeed, it breaks my heart cause I love the Jeep Commander...but, I will not support the UAW!
I love Toyota!!!
Whoa! That writer is gonna get whacked on South Street.
What success GM has had since the fake bankruptcy was in part built on people going for some of their little gas savers, due to freakouts over the soaring price of fuel.
This is precisely what the planners planned, and many went along like good little foot soldiers in the statist revolution.
I can see the pressure they felt, but it was done blindly, based on the family budget, and not with full understanding of the manipulation-capitulation involved.
Irony for the statists...even that capitulation can’t hide the truth of bad results.
The old media can hide it, though, and it’s up to the new media to trump them.
“It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder.” - Frederic Bastiat 1801-1850
Americans are innumerates.
They make nothing on eco-twit buzzbomb toy cars, all their profits came from full size trucks and SUVs. Something liberals mock and don't buy.
Now they pissed off their middle class taxpaying buyers and are doomed. When the bailouts end they are out of business.
Market Cap of 36 Billion. Ford borrowed against all assets to the tune of 30 billion and how as a market cap of 40.55 billion. With that said, it could rise dramatically if the stock price would rise where many think it should be. Ford is now almost investment grade and they are working on a novel approach to ameliorate the effects of the pension liabilities for salaried workers, which would get them to investment grade.
At somepoint and I have been saying it for eons, will Fords Free-Market Approach vs the GM Statist model become an issue this fall?
Especially when the Focus Energi comes out and is compared to the Volt and kicks it's sorry butt to the curb...
Headline should read:
GM, a thoroughly corrupt and failed investment
GM is basically a car building pension fund....and as long as We the People continue to hold the following generation hostage to the appetites of the previous...life is gone be grim for all of us.
Last Friday I bought a VW Beetle.
I shopped Audi’s, Mercedes, BMW and Porsche but never even thought about GM because if you can’t trust the company, you can’t trust their product.
Don’t forget the GM dealerships often owned by conservatives that were forced to close.
“Dont forget the GM dealerships often owned by conservatives that were forced to close.”
March 30th, 2009 I bought a new 2009 Sierra W/T off the lot at Noonan Pontiac in Sterling Heights, MI just when Obama fired Waggoner from GM. It was part of a March Madness special and was the only one they had. The dealership was within two months of being shut down. It listed at almost 22K but I got for 14, no cash out of pocket. I asked for and got a free bedliner with it. Chrome bumpers, OnStar, XM radio, and a 4.3 Vortec V6. Buying a great car depends on what kind of deal you can find or make for yourself and sometimes you get lucky but it all came together for me on this one. Too bad though. The people at Noonan Pontiac/GMC were great.
Best purchase ever!
It’ still hard to believe that Obama got away with taking over a company. I didn’t think that was legal.
GM cut all the invoice to sticker price out of the cars. There is no profit margin for the dealers anymore. Invoice to sticker on a $28,000 Equinox is 750.00. Invoice to sticker on a $22,000 Cruze is 400. Chevy stores are folding left and right.
I made a similar purchase!
Bought the truck for less than 14K. The price reflected the uncertainty at GM. Ordered a metallic paint job. Delivery made in September, which could have been the end of production for that Texas plant.
I installed 22 inch rims, tinted the glass, put a cover on the box, and a pair of n-fab rails.
I get a LOT of positive comments, some even think I ordered some obscure special edition package.
Now, with the Bankruptcy and subsequent damage to bond holders, Dealers and Salaried staff, I will never but GM nor Chrysler.
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