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I am not certain any GM DAT product makes its way to Japan. Suzuki has adequate facilities to meet demand in the home country.
Wonder who owns the gun and tank building assets of Daewoo?
Korean bankruptcies are handled by the Korean government. I imagine they would have found a domestic buyer for defense assets. I know GM did not buy any defense or ship building assets from the Daewoo estate.
And I bet at lease SOME of those did spend $25,000 in repairs. It wouldn't be out of line with some of those lemons out there.
But yes, I was exaggerating, if only a little.
So typically when a company got into trouble, the only thing that they could sell to generate quick cash is the part that makes money. But that is the short term quick fix. Next year if GMAC makes $1 billion dollars, half of that earning is no longer GM's. So if they sell off GMAC, they will lose the financial cushion that has helped them for decades.
jt
First off, Chevy's V-8s are pretty common except for the Corvette motor. Not so great as you may think. Secondly, whom do you suggest regulate the size engine the "general public" can buy? And don't say the Government - this is America, and the market should control what the general public can buy. The price of fuel and the cost of the the engine will control the number of cylinders the public gets to buy. It's the American way. I don't want to live somewhere (like the Soviet Union used to be) where everything is regulated by the Government.
It's a shame that they've been compelled to sell it, but at the same time, this sale will force management to either step up to the plate by making the company perform on its own merits (finally selling cars that people want), or else step aside in favor of others who can do better. Somehow, I suspect that the most conspicuous members of the team may not survive the outcome.
I suspect that if the plan fails (if there is a plan -- does selling SUV's constitute a "plan"?), there will be a bankruptcy, a new management team, and a strategy built around downsizing and cutting out a lot of nameplates (and possibly some of the badges, such as Buick and Pontiac.) I could see a venture capital white knight bringing in the management team (money always comes with strings attached), but I can't see a rival automaker doing it.
As a long-term hold, I don't see it. Companies are generally valued based upon multipliers of earnings, with something factored in for any dividends paid. Given that, I would expect GM to generate poor earnings and to be strapped with a low multiple, combined with another upcoming price decrease if/when the dividend gets cut to zero, all of which doesn't bode well for the future. Without some home run hits in high-volume segments, where would these earnings come from?
You might be able to do some short-term trading, trying to buy during dips and selling it quickly as it ticks up, as the stock price may prove volatile. (At this point, a $2/share move is very meaningful in percentage terms, and there should be news events that create some fun days ahead.) But as a long-term play, the earnings may not materialize, and a bankruptcy could eliminate the value entirely. (Equity holders come behind debt holders, so bye-bye dividend and possibly the entire value of the shares if the company BK's and subsequently reorganizes.)
Your right - I should have said 6 cylinders, are probably the maximum number of cylinders most people should consider. It is difficult to legislate things like number of cylinders in the U.S.A. or most democratic countries. However, the government can legislate things like miles per gallon cars have to be able to achieve. And, you might want to trade in your car one day and a V8 might not be worth too much if gas is $8 a gallon. So, you are right, I meant to say, it is probably the responsible and wise thing, to try to reduce cylinders to a maximum of 6 unless you have a good reason...like towing your yaught.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
A restructured leaner and meaner GM, able to produce say a half dozen good cars, and a half dozen SUV and trucks with good quality, resale and style which says buy me now, is a good thought. Dream? Reality? As much as some older people may not be impressed with the GM of mid-70s to '00, did like say the 1960's cars by GM and do hope for a revival of the good ol' days when GM was better " Body by Fisher " bodies, pretty good engines, and had style setting autos. Just look at the '65 Riv, or a '68 Malibu.
-Loren
Only takes $42K or more to do so. Eight cylinders, but decent gas mileage. The GM V6 seem to be getting up to 31 MPG.
The Cobalt i4 only gets 34 MPG- must be in the gearing. Civic can get 40 MPG.
Too bad we have very little in the way of an efficient rail system for passengers in the US. Oh well, we are busy financing other things. As in blowing the money.
-Loren
Despite the posturing, I doubt that Delphi workers will go on strike. Everyone - including the UAW - has too much to lose.
The UAW has its national elections this summer. Until that point, UAW leadership isn't going to talk to the members about GM's problems. Once the elections are over, I'll bet that union leadership starts prepping members for the 2007 contract talks by explaining the economic facts of life.
Of course, if gas goes to $4 a gallon, all bets are off.
As for a merger - Nissan was once a basket case, but Renault (!) saved the day. GM still has decent production facilities, a strong dealer network, and a loyal (although slowly shrinking) customer base. That could be an incentive for some manufacturer to take the chance on GM.
If GM's back really is against the wall, I'm sure the U.S. government would do whatever is possible to encourage a white knight to rescue GM, as compared to the possibility of GM declaring bankruptcy, leaving the federal PBGC holding the bill for the corporation's pensions. Even if that white knight were a foreign company.
You're right about their new name, but that's all that changed. And the badging of their cars outside of Korea as well. The Nubira is now sold as the Suzuki Forenza and Reno, the Magnus as the Suzuki Verona, and the Kalos - the successor to the Lanos - is the Chevy Aveo (an American Revolution).
In Europea they're all rebadged as Chevies and have different names (way to represent...).
All those are designed and built by the the same people at the original Daewoo.
And I again, ran up against the #1 GM marketing problem.
The car has everything as an option, and conflicting ones at that - like how it requires a sunroof to get traction control and other craziness.
The Matrix? Few options.
The Honda Fit? Zero options - you pick your style and that's it other than aftermarket stuff you do yourself.
They searched all of southern California for a base Vibe with stickshift, ABS, and side airbags - and found *one* - without power anything. For the bargain price of $16,500 after rebates.
Sigh. How GM can make such a good car with the Lucerne V8 and such a pile of mismatched options that they plainly have no intention of really trying to sell like the Vibe...
Honda gives you ABS and side airbages on every car, even their least expensive, base DX model with nothing on it Civic or their base model Fit. They are trying.
GM? One Vibe with ABS and stickshift. Might as well be not even made.
Sigh. I give up. I think I'm going to just buy a 1996 S420 with the V8 in it for ~8-10K. Last of the big Mercedes "tanks". The 4K I save buys an awful lot of gas.
So far, my 67, used as the family's only car for six months has cost me a whopping $70 in oil changes and filters, plus an upcoming set of belts for $50. If the mid 90s versions are half as reliable, I've got nothing to worry about.
In Europea they're all rebadged as Chevies and have different names (way to represent...).
That is not correct. Management is now a team of Suzuki, GM and Koreans led by a former Holden engineer. Engineering retained some of the Daewoo personnel, but is mainly new hires and transfers from Suzuki and GM facilities abroad.
Sure, GM DAT uses existing Daewoo designs. Making new designs and retooling factories takes several years.
Unless your theory is that GM DAT plans never to launch new designs - something completely false - GM DAT is already making a new CuteUte on the Equinox/VUE platform and is working on designs that will incorporate the next generation small and midsize platfroms - then your claiming it is still Daewoo is borderline bizarre.
Some ethanol skeptics have even argued that the process involved in growing grain and then transforming it into ethanol requires more energy from fossil fuels than ethanol generates. In other words, they say the whole movement is a farce.
There's no absolute consensus in the scientific community, but that argument is losing strength. Michael Wang, a scientist at the Energy Dept.-funded Argonne National Laboratory for Transportation Research, says "The energy used for each unit of ethanol produced has been reduced by about half [since 1980]." Now, Wang says, the delivery of 1 million British thermal units (BTUs) of ethanol uses 0.74 million BTUs of fossil fuels. (That does not include the solar energy – the sun shining – used in growing corn.) By contrast, he finds that the delivery of 1 million BTUs of gasoline requires 1.23 million BTU of fossil fuels.
So it looks like it actually takes less oil to get the same amount of energy. Everyone also seems to forget that once E85 gets rolling the farm tractors will start using it and the big rigs may even start using it. Some of the oil required will change over to E85.
Also the talk is about corn and how it is less efficient than sugar cane (from brazils usage) but how about sugar beets? Lots of US sugar comes from beets. could htat also be a future source?
It would cost about a $1 per gallon to make diesel fuel out of coal.
The older tractors are already E85 ready? Doubt that. Nice statement for him to make however-sounds good.
Don't most high production farmers use diesel for their equipment anyhow? Is there going to be ED85 for diesel?
2014 Malibu 2LT, 2015 Cruze 2LT,
Most diesel engines already can burn bio diesel. Bio diesel can be made with all sorts of waste product, not just refined agricultural product.
Actually I was being slightly cynical in response to the statement that use of ethanol fuel would be made in farming to reduce the total use of gasolines by the science 'expert.'
2014 Malibu 2LT, 2015 Cruze 2LT,
Probably no mention on Johndeere because there is not a lot of biodiesel fuel available at present.
Who knows, perhaps the coastal areas will remain oil consumers due to easier to get oil supplied and the midwest will be E85 users because it is cheaper to get E85? Sounds like one of barriers E85 has is unable to use pipes to transport and the midwest could use it where it is produced.
This whole ethanol thing is really just getting started. Maybe they can bio engineer plumper corn or use seaweed or whatever. Lets let US entreprenuers figure it out!
They did - it calls algae farms...
E85 can reduce our imports, but it is not a long term solution.
Bad pun intended. I assume they have enough growing and being processed and transported to use this in replacement for MTBE? What happens if they can not supply enough to certain states? Gas production halts?
So are farms in the mid-west going up in value. A new land rush?
-Loren
-Loren
Ok, I can see your point now.
I've also realized the company that built my Sentra in 1992 doesn't exist anymore either, now that it's controlled by someone else who changed its leadership, moved its US HQ to another state with a high employee turnover, and designed vehicles that it didn't make back in '92.
Pretty much the same thing. Except my understanding of the Nissan/Renault transaction is that Nissan retained its corporate structure. Renault bought the stock and took over the board of directors, who in turn put a Renault person as the CEO.
GM and Suzuki paid the Korean bankruptcy authority for some factories, intellectual property (that means designs, patents, and trade names, e.g. Daewoo, Nubria, etc.) for assets.
GM Daewoo Automobile Technolgies is a new corporation that GM and Suzuki set up to acquire the Daewoo assets.
32 need to drop prices for a while and eliminate rebates. Then they have to wait out for people to want cars at that price. They are the only way the masses can get new cars, the foreign makers (other than Toyota) cannot supply the masses. The styling sells short term but value sells long term. After several foreign cars (2 Sequoia's, TT, 350Z, FX45) I tried a Expedition. Even after getting it at almost $11,000 off, I took a $13,000 hit on depreciation when I traded (the rear end went out at 750 miles, electrical glitches). I'm back to Toyota (a 4 runner and a Camry Hybrid). I don't know what GM has to do to get me interested. Other than the Vette, I wouldn't be willing to take a chance on anything else. Two of my neighbors bought a Tahoe and a Suburban at the same time I bought the Expo. The Tahoe has a new engine and the Suburban is on the second transmission. Styling alone won't do it. They have to depend on the (should I say it) rednecks that will only have a Ford or Chevy (and have a little Calvin sticker on their window) and won't buy any of that foreign junk to purchase their vehicles. Perhaps some of these people should look and see where their vehicle is put together?So you're saying people who buy Chevies or Ford pickups are all rednecks? Would you like to define "redneck"?
2014 Malibu 2LT, 2015 Cruze 2LT,
"Redneck" - anyone who buys a Chevy or Ford pickup
;-)
but seriously, my few friends that do own Chevy or Ford pickups, each of them would be proud to be called a "redneck" - two of them have Confederate Flags in the back window, though neither of them has ever lived in a Confederate state. But one of the guys at least eats everything he kills. And they are both good guys. But they are rednecks. Yes, each chews tobacco.
Yes, finally. Ford has had FFV engines available for half their fleet now for 7 years..... a staple of municipalities across the fruited plain.....
Once again, GM is so late to the party, and then advertises it like their first. That's Ford's biggest weakness, they don't know how to advertise.
But if you want to go on being a good sheep, just remember the Japanese are laughing at you behind your back, and in many cases in front of your face, your just a dumn Yankee and don't know the diff.
-Loren
That's why you're still a GM customer.
All the Honda and Toyota buyers out there DID have problems with their GM products.
Actually Yankees consider me a Southerner. I'll pass on responding to the name calling.
I live on this planet. One quality of closed minded people who views such as with your view on GM. What planet are you on? The cases I gave are real. My Ford broke, so did my neighbors Yukon and Surburban. Major repairs on fairly new vehicles.
This world is bigger than the US. I'm guessing the 400,000 Americans who work for Toyota need to know they are the lackies of the Japanese automakers.
At least the Japanese are building plants in the US and providing new jobs. They don't have to. GM and Ford move their operations to canada and Mexico and have layoffs. Who's the real American lover. If GM moves out of the US to compete, then why is it Toyota moves to the US?
I'm guessing this comment won't be well received. Then again I expected this reaction when I decided to comment on something as sacred to people as GM and Ford.
I've owned Audi, BMW, Nissan, Infiniti and Toyotas. I've also owned numerous Chevy's and Fords. Only 1 Dodge (won't happen again) I buy what I like and what I think will be a decent automotive investment.
You might not realize it from my post, but I am a hillbilly, which is a close relative of Rednecks.
Possibly you are not aware then that there are manufactures that have high quality reputations. By the way I have traveled a good deal of the planet and have a more global view of life. I'm left wondering what hollow you live in and have you ever been out of it?
I would consider being close minded as a redneck trait. Not really any thing derogratory or disrespectful, just an observation. Personally I am a hillbilly. People may say that to insult me, but I don't take it personally. That's what I am. Most Rednecks are proud of what they are.
However not all rednecks have a confederate flag in their truck window, but people with confederate flags in their truck window are probably all rednecks.
I believe he drove off into the sunset in a Ferreri or Lambo
I guess I didn't want to use the word stupid since that tends to insult just about anyone it's directed at. Well if I had used the word stupid it shouldn't bother anyone except those that feel directly impacted whereas the redneck name possibly insulted a lot of peoploe not even involved in this discussion. I'll stick to using "uninformed" (Ignorant) from now on. Oh, and in case there are Rednecks reading (you know who you are) ignorant and stupid do not have the same meaning. Look it up in the dictionary (under the "I's).
By the way does anyone really thing the HHR is an appealing vehicle. Would the word hideous come to mind when you see it? How about the Maxx? Is that styling going to save GM? It looks like an amphebious car coming down the road. I wonder if it floats or if that possibly is an option GM has planned for it.
Hey, I'm not all anti-GM. I think the Vette (owned one) is world class. It is not however in the league of some of it's foreigm competition when it comes to quality materials. I understand that in cheaper cars, but for $50K cheap plastics don't cut it.