Take a look at this chart. GM stock owners are well aware of what has happened to their stock over the past year. Since February of ’08 GM stock has lost 92% of its value, from $25 per share to today’s $1.77. That, friends and neighbors, is cheaper than the national average for a gallon of gas.
Which, by the way, is no different than conditions in October of ’08 when this news clip aired on CBS.
And the guy in the video is right. Right now is not the time for GM, or any auto manufacturer to be strapped for cash, which is why they are begging for more stimulation.
They need the money to retool.
So the real problem is that GM is making cars that no one wants to buy because a) the cars use too much gasoline, b) customers can’t be certain they will have a reliable supply of spare parts, and c) everyone is waiting for American car companies to make hybrids or battery-powered cars.
And they can’t make these new cars until they retool.
It’s a vicious circle.
So everyone go out right now and buy a Buick, OK?
And I’ll go out and buy some shares of GM stock at bargain basement prices. Heck, at these prices GM is worth more as a source of scrap metal.
4 comments:
I'll buy a Buick when I perceive the value that I will get from that Buick is equal to or greater than what I can get from one of their competitors. And so far I've concluded I can get more value for less money (with better service) from an alternative brand. Unfortunately for Buick, I have been very, very happy with my trucks from Ford and my small economy cars from Honda over the last couple of decades--I'm not real eager to switch what has been a good formula for me.
See, it's attitudes like that that will see GM's stock bought up by Yahoo so it can be broken up and sold to Ford, Toyota, Honda and Saab, or wait . . . Volvo . . . or wait . . .
So Hal,
Should I sell my current cars and buy a Buick or another GM vehicle just to help them survive? Or should they have to earn my confidence by competing in the market place?
A lot of companies go out of business because they cannot be competitive. Why should GM be different?
History is littered with companies that could not remain competitive and died.
Boy, Anon, did the point of my post go completely over your head?
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