GM Stock: ALL YOU NEED TO KNOW

DETROIT (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) shares fell as much as 21.6 percent to their lowest level since 1950 on Thursday amid financial market turmoil and the car maker's report of European sales declines through the first nine months of 2008.

GM, whose shares fell as low as $5.42 on the New York Stock Exchange, blamed the credit crisis and inflation for hurting consumer confidence in Europe, where its sales have declined 1.9 percent in 2008 through September.

GM, the largest U.S.-based automaker, posted a $15.5 billion net loss in the second quarter and announced plans in July to cut costs by about $10 billion. The company has been restructuring in North America to meet increasing demand for more fuel-efficient vehicles.

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Comments

[401KPoor]

Somehow I can't feel very sorry for GM. They gave us gas-guzzling cars and fought tooth and nails government requirements for more energy efficient cars. When they had an electric car, they killed the project.
Perhaps the CEO of GM can sell one or two of his helicopters as well as the private plane to help make up?

[tmo7734]

There are rumors that GM is about to fold. If it does, the current financial crisis will be a contributor, but not the cause. For years, GM refused to change with the times. Year after year, it has built overpriced, gas-guzzling vehicles that don't hold up. Figuratively, the corporation died years ago.

[Haditup2here]

. . . . Not only that, some of the executives of GM were some of the most overpaid executives in the US. (See the article on that). It's kind of like karma. I remembered not too long ago that they were threatening to outsource engineering jobs to cut cost. Someone needs to outsource them.

[Danny]

Reagan fired the air traffic controllers giving rise to waves after waves of union-busting or union-demeaning propaganda. It took his followers thirty years to witness the resurgence of the labor movement. We could have spared them the hardship if only they had understood the benefits to society of the labor movement.

[gfreshski1]

Hard for me to feel bad for them. They killed the EV electric car and produced thousands of Suburbans and Tahoes instead.

Now Toyota is mopping the floor with them with the success of the Prius and their fuel efficient fleet. They did not look forward, and succumbed to some narrow-minded "now" strategy.

Maybe this will make them pioneers in the auto field again, and start making cars for the future. Efficient and reliable.

[ftprairiedog]

No, just some old time Union busting, the cars will be made in Mexico,China or Viet Nam and the morons in America will stand in line to buy them, that is if anyone can afford one.

[humbop]

I'd like a free-market, Capitalist GOPer to explain why American car companies can't compete on the world market. They've had their tax breaks, their lobbyists defeat raising gas-mileage standards, etc. There even was a precursor gas-crisis in 19772 that was a warning to them. But what do they do? Instead of building more efficient cars, they find loopholes that classify cars as trucks so they don't have to meet fuel standards. They lobby for this and for that. I don't see the innovation, the flexibility, that free-markets are supposed to bring. In addition, they urge the public to "buy American" despite offering a subpar product. Great. Bring out the patriotic jingoism when you can't deliver the goods.

Stop drinking the Kool-Aid, folks. All this socialism is dangerous, Capitalism is the only way bullshit is a way for the Corporate elitists to keep fleecing the American public. Why should I "buy American" if the Japanese and Koreans make a better product? THAT'S Capitalism.

The fallacy of laissez-faire, is that companies will change and adapt better without government intervention because there is profit in it. The reality is that they'd rather resist change and cash in short term than make strategic long-term decisions which would keep them profitable. And never, is the well-being of the community or nation brought into the equation.

You live by the sword of Capitalism, you'll die by the sword of Capitalism. Long live Toyota.

[bitemeredstate]

Notice how the US car company $25bn bailout was quietly approved vs. the $1.8bn Chrysler received in the early eighties. I became curious when former Treasury Secretary Snow and his private equity firm, Cerberus bought Chrysler from Daimler Benz. I thought, why would a private equity firm buy Chrysler and all of it's problems? Mysteriously, the auto company bailout came a year later.

My bailout would have been $100bn on Sept. 12, 2001, based on developing proprietary alternative fuel technology to be shared among GM, Ford and Chrysler. Eliminating a high percentage of imported oil and creating US jobs.

The $25bn approved recently is just a blank check to do more of the same.

[KillTheMessenger]

"The $25bn approved recently is just a blank check to do more of the same."

We have done "more of the same" since Jimmy Carter formulated an energy strategy 30 years ago and got shafted for it. A couple more years won't do any more harm. We need to root out conservatism all the way to the bedrock. The best way to do that is to "do more of the same" until everybody gets it that those who don't get it are dangerous lunatics and need to be ousted.

[alexis d]

Exactly. Cut the cancer out. Electing Obama/Biden is only the start. This sickness has to be run out of power on a rail.

[Haditup2here]

I think they need to let one or two of these auto companies fail. For years, business
executives have treated research and development and engineering as a commodity
instead of priority one. Outsourcing and cutting costs by using cheap products is all that they
cared about to keep their money train going. Unfortunately, as you stated everyone's pockets
will have to hurt until everyone "gets it". However, I think some people need to fall off from the top before that happens.

[Ohg]

This is the legacy of the GOP. More specifically - the legacy is of War, death, hatred, and now socialism. Call me a liberal - but I never voted for this. We should brand these folks on election day and put them out to pasture ..........­..........­....
http://thefiresidepost.com/2008/10/09/the-gop-legacy-wars-death-hatred-socialism/

[AmandaBC]

Let me guess...ba­ilout?

No f_at cat left behind.

[AmandaBC]

Let me guess...ba­ilout?

No fat cat left behind.

[texasweed]

Bush and fellow Republicans have been leading the automakers into the abyss by encouraging the purchase of gas guzzlers. The rest of the world was looking to the future.

[Notapathetic]

I wonder if these business geniuses ever have the thought that if they had saved even 1% of their profits every year for the last 60 years they would be swimming in cash!!!

How is it that the Captains of industry and leaders of State have so little common sense? It really is astounding.

[ErnestineBass]

Common sense...my favorite oxymoron.

[KillTheMessenger]

It's the other way round. Automakers have been lobbying for permission to do so and got their wish granted. This is a typical "beware what you wish for" event.

[ErnestineBass]

Your naivete is only surpassed by your ego, KTM.

[arthur2008]

As General Motors goes, so goes the nation.

[KillTheMessenger]

Nah, GM belongs on the garbage pile of history. Let Toyota build hybrids. They have proven that they know how to do it right.

[BillN]

The Japanese had the wisdom to see this coming a long time ago, which is why they're eating GM's lunch today. For the sake of GM or any other poorly-managed large American corporation, there should be no corporate welfare. Instead, the strong, well-managed companies should survive, and the weak should perish. The misfortunes of laid off American auto workers should "trickle up" to the top - where it belongs.

[Ladyrantsalot]

I feel badly for anyone who works for GM, but we live in a global economy and GM stopped making cars for normal people decades ago. Message to GM executives: the world buys Toyotas and Hondas because Toyota and Honda manufacture autos that: 1. are fuel efficient; 2. are affordable; 3. have excellent maintenance records; 4. are small and reasonably attractive. That's what the majority of the world's population wants. If you ever get interested in selling cars again, let us know.

[Viper]

Actually many GM products now rate higher than Toyota and they have a higher average fleet mileage..

For many years now there has not been much difference in quality. I have GM and Toyota. Like both.

GM does very well in Europe and Asia.

Pls note that your 25K Toyota sell for $50K in Japan... Hmmm ... The car you buy here is subsidized by the protected profit they make back in japan.

Regards

[Ladyrantsalot]

GM doesn't make the equivalent of a Corolla, Civic, or Accord. Judging by the sales #s for those automobiles, that's what people want. I've lived in the UK and CHina for years (not right now) and I don't think I've ever seen a GM car in either place. Occasionally you'll see an old Escort in London. 25K Toyota? My Tercel cost me $8000 in 1993. My Civic cost me $11,000 in 2002 (with AC and a CD player). I think a new Civic is about $15,000. I suppose you are referring to Toyota's SUVs. Perhaps they are no better than GM SUVs, but the SUV is dead. Toyota has the Corolla, etc. to fall back on. Honda has the Civic to fall back on. GM has nothing. That's why it is going down. I'm sorry about that. I wanted to buy American. But GM abandoned the vast majority of the global market to the Europeans and Asians.

[KillTheMessenger]

"Actually many GM products now rate higher than Toyota"

That's not the point. Whether you drive a 13mpg truck or a 15mpg truck makes no difference whatsoever. The only thing that does make a real difference is that you drive a 40+mpg hybrid.

"GM does very well in Europe and Asia. "

Those GM branches do things differently because they are being forced to compete under different sets of rules. You can not get away with monster trucks in Europe. They are simply not allowed by law.

"Pls note that your 25K Toyota sell for $50K in Japan... Hmmm ... The car you buy here is subsidized by the protected profit they make back in japan."

Note that your $6 burger sells for $20 in Japan, too. It has nothing to do with subsidies but is simply the different price level of differently advanced economies. If you haven't noticed, yet, the US is to Europe and Japan what Mexico is to the US.

[rich misty]

Where are the republicans cheering the wonderful Bush economy???

[plebeianswillrevolt]

GM wants a bankruptcy. Blow off creditors, auto warranties, overpaid union workers, undunded pension and benefits and start from scratch. Like it or not, this is how it's gonna work. Did you notice Ford stock today??

$2 stinking bucks.

[ErnestineBass]

Yep. Down from a stinking $2.62 at yesterday's close. LMAO!

[raw915]

GM's just reward for scraping this country's national trolley system...

http://www.culturechange.org/issue10/taken-for-a-ride.htm
http://en.wikipedia.org/wiki/General_Motors_streetcar_conspiracy

[Viper]

Gee, that about as bad as going back to Ayres 40 years ago!


regards

[Loompa2000]

wow...just think about how nice light rail systems would be working for all of us had they been allowed to survive

[ErnestineBass]

Sorry, but raw's correct.

[BillN]

Not really. You're overlooking one minor detail...

The Ayers rant is nothing but BS.

GM and Firestone's buying up and dismantling of our country's mass transportation systems so they could sell buses with rubber tires on them to hundreds of municipalities - is FACT.

[Jules1]

Barack has bought one half hour on main stream Tv for Oct 29th, many networks, Hmmm!!!
A message to Americans I am sure!! Yes this will show who the real leader is, call your congressman or woman and tell them to keep Bush and paulson off TV, they did this and now they are making it worse, but rememebr as long as it is the economy it is Barack, so we can stand it until Nov 4th, hang on it will be rough, but it's not the Journey, it is the Destination Nov 4th.