GM massacre

[equalizer]

So whats the trade here? Auto sales have plummeted in June. Massive (20%) short term spike in the next few days? Is there blood in the streets? If gas prices fall, this will rock to 20+.

“Monday. GM shares closed at $12.91 — near a 33-year low, adjusted for stock splits — in 4 p.m. trading on the New York Stock Exchange.

Through the first half of June, normally a strong period, U.S. auto sales were running at an annualized rate of about 12.5 million vehicles, according to J.D. Power & Associates. It was the lowest level for June in decades and a huge drop from the year-ago rate of 16.3 million vehicles.

In hopes of spurring vehicle sales, GM said it would offer zero-percent loans for up to 72 months or cash rebates of up to $7,000. In a conference call, GM’s top marketing executive for North America, Mark LaNeve, said the offers should help dealers move some of the pickups and SUVs they have in inventory, which have become hard to sell and are rapidly falling in value.

“Zero percent seems to work,” Mr. LaNeve said. He added that recent declines in the value of used trucks have left some customers driving vehicles worth less than is owed on them, making it hard for owners to trade them in on new models. “A lot of customers are out of equity, and zero percent helps [with] that issue,” he said.

An investor who wants to buy credit protection on $10 million in GM’s bonds for five years currently has to pay $2.8 million upfront and $500,000 annually for that insurance, through what are called credit-default swaps. A year ago, that protection cost only $400,000 annually, with no upfront cost, according to Credit Derivatives Research LLC.

The need for an upfront payment means the market regards GM as likely to default over the next few years. Based on market prices, debt investors currently see more than a 70% chance that GM will default on its obligations sometime in the next five years, said Boaz Weinstein, co-head of credit trading at Deutsche Bank AG.”

A spokesman for GM said it has sufficient liquidity for 2008. He declined to comment on 2009?????

pay link-
http://online.wsj.com/article/SB121424094257797029.html?mod=yahoo_hs&ru=yahoo

[Coronita]

You know GM isn’t going to do as bad as Ford…And ford isn’t going to do as bad a lol Chrysler.

GM already went to the rut of having a bad product mix. But something GM started about 1.5-2 years ago, is they started to revamp their sedan line by sharing platforms with GM europe (opel and vauhaul). Namely, the majority of the Saturn line has it’s underpinning from GM europe. Buick’s a bigger selling in China (considered luxury) and a good portion of design is done jointly between teams in U.S. and Shanghai. Chevy/Caddy is going introducing new product lines (vette,ctx, and camaro (rumored to have a 4 cylinder turbo—lol). It’s true GMC and Hummer and the bigger SUV’s are going to tank, and possibly they are going to sell those monsters off. (Not a bad thing imho). But at least GM has some of the sedan product mixes. Reliability has been improving as well. I thought I’d never say it, but if I had to choose between Toyota or GM appliance, I’d probably pick a GM car these days.

Ford, is in worst shape. not too many new product launches in the sedan category. They are late to the game, gambling way too much on the SUV/CUV lineup. They at least own two interesting labels that should do well: Mazda and Volvo.

Chrysler is screwed, as they are the worst cars in terms of efficiency and an even more retarded product line.

[Coronita]

You know GM isn’t going to do as bad as Ford…And ford isn’t going to do as bad a lol Chrysler.

GM already went to the rut of having a bad product mix. But something GM started about 1.5-2 years ago, is they started to revamp their sedan line by sharing platforms with GM europe (opel and vauhaul). Namely, the majority of the Saturn line has it’s underpinning from GM europe. Buick’s a bigger selling in China (considered luxury) and a good portion of design is done jointly between teams in U.S. and Shanghai. Chevy/Caddy is going introducing new product lines (vette,ctx, and camaro (rumored to have a 4 cylinder turbo—lol). It’s true GMC and Hummer and the bigger SUV’s are going to tank, and possibly they are going to sell those monsters off. (Not a bad thing imho). But at least GM has some of the sedan product mixes. Reliability has been improving as well. I thought I’d never say it, but if I had to choose between Toyota or GM appliance, I’d probably pick a GM car these days.

Ford, is in worst shape. not too many new product launches in the sedan category. They are late to the game, gambling way too much on the SUV/CUV lineup. They at least own two interesting labels that should do well: Mazda and Volvo.

Chrysler is screwed, as they are the worst cars in terms of efficiency and an even more retarded product line.

[Coronita]

You know GM isn’t going to do as bad as Ford…And ford isn’t going to do as bad a lol Chrysler.

GM already went to the rut of having a bad product mix. But something GM started about 1.5-2 years ago, is they started to revamp their sedan line by sharing platforms with GM europe (opel and vauhaul). Namely, the majority of the Saturn line has it’s underpinning from GM europe. Buick’s a bigger selling in China (considered luxury) and a good portion of design is done jointly between teams in U.S. and Shanghai. Chevy/Caddy is going introducing new product lines (vette,ctx, and camaro (rumored to have a 4 cylinder turbo—lol). It’s true GMC and Hummer and the bigger SUV’s are going to tank, and possibly they are going to sell those monsters off. (Not a bad thing imho). But at least GM has some of the sedan product mixes. Reliability has been improving as well. I thought I’d never say it, but if I had to choose between Toyota or GM appliance, I’d probably pick a GM car these days.

Ford, is in worst shape. not too many new product launches in the sedan category. They are late to the game, gambling way too much on the SUV/CUV lineup. They at least own two interesting labels that should do well: Mazda and Volvo.

Chrysler is screwed, as they are the worst cars in terms of efficiency and an even more retarded product line.

[Coronita]

You know GM isn’t going to do as bad as Ford…And ford isn’t going to do as bad a lol Chrysler.

GM already went to the rut of having a bad product mix. But something GM started about 1.5-2 years ago, is they started to revamp their sedan line by sharing platforms with GM europe (opel and vauhaul). Namely, the majority of the Saturn line has it’s underpinning from GM europe. Buick’s a bigger selling in China (considered luxury) and a good portion of design is done jointly between teams in U.S. and Shanghai. Chevy/Caddy is going introducing new product lines (vette,ctx, and camaro (rumored to have a 4 cylinder turbo—lol). It’s true GMC and Hummer and the bigger SUV’s are going to tank, and possibly they are going to sell those monsters off. (Not a bad thing imho). But at least GM has some of the sedan product mixes. Reliability has been improving as well. I thought I’d never say it, but if I had to choose between Toyota or GM appliance, I’d probably pick a GM car these days.

Ford, is in worst shape. not too many new product launches in the sedan category. They are late to the game, gambling way too much on the SUV/CUV lineup. They at least own two interesting labels that should do well: Mazda and Volvo.

Chrysler is screwed, as they are the worst cars in terms of efficiency and an even more retarded product line.

[Coronita]

You know GM isn’t going to do as bad as Ford…And ford isn’t going to do as bad a lol Chrysler.

GM already went to the rut of having a bad product mix. But something GM started about 1.5-2 years ago, is they started to revamp their sedan line by sharing platforms with GM europe (opel and vauhaul). Namely, the majority of the Saturn line has it’s underpinning from GM europe. Buick’s a bigger selling in China (considered luxury) and a good portion of design is done jointly between teams in U.S. and Shanghai. Chevy/Caddy is going introducing new product lines (vette,ctx, and camaro (rumored to have a 4 cylinder turbo—lol). It’s true GMC and Hummer and the bigger SUV’s are going to tank, and possibly they are going to sell those monsters off. (Not a bad thing imho). But at least GM has some of the sedan product mixes. Reliability has been improving as well. I thought I’d never say it, but if I had to choose between Toyota or GM appliance, I’d probably pick a GM car these days.

Ford, is in worst shape. not too many new product launches in the sedan category. They are late to the game, gambling way too much on the SUV/CUV lineup. They at least own two interesting labels that should do well: Mazda and Volvo.

Chrysler is screwed, as they are the worst cars in terms of efficiency and an even more retarded product line.

[an]

GM does give a very compelling case for the car portfolio. I love what they did with Saturn. GM is smart enough to see that their European designed cars are doing very well and they can actually take advantage of it. However, what’s still holding them back when they go against the Japanese in this changing market is the flexibility of their manufacturing and the union they have to deal with. The big three Japanese are producing both cars and trucks in the same plant and can vary the % of each type of vehicle they produce per plant much easier than GM can. That’s how they can cope with this change in mixture of sales much easier. Nissan is producing more Altima in the Titan plant, same with Toyota producing more Camry in their Tundra plant and Honda producing more Fit in place of their SUV. That’s the kind of flexibility GM need to be able to thrive in this drastically changing environment.

[an]

GM does give a very compelling case for the car portfolio. I love what they did with Saturn. GM is smart enough to see that their European designed cars are doing very well and they can actually take advantage of it. However, what’s still holding them back when they go against the Japanese in this changing market is the flexibility of their manufacturing and the union they have to deal with. The big three Japanese are producing both cars and trucks in the same plant and can vary the % of each type of vehicle they produce per plant much easier than GM can. That’s how they can cope with this change in mixture of sales much easier. Nissan is producing more Altima in the Titan plant, same with Toyota producing more Camry in their Tundra plant and Honda producing more Fit in place of their SUV. That’s the kind of flexibility GM need to be able to thrive in this drastically changing environment.

[an]

GM does give a very compelling case for the car portfolio. I love what they did with Saturn. GM is smart enough to see that their European designed cars are doing very well and they can actually take advantage of it. However, what’s still holding them back when they go against the Japanese in this changing market is the flexibility of their manufacturing and the union they have to deal with. The big three Japanese are producing both cars and trucks in the same plant and can vary the % of each type of vehicle they produce per plant much easier than GM can. That’s how they can cope with this change in mixture of sales much easier. Nissan is producing more Altima in the Titan plant, same with Toyota producing more Camry in their Tundra plant and Honda producing more Fit in place of their SUV. That’s the kind of flexibility GM need to be able to thrive in this drastically changing environment.

[an]

GM does give a very compelling case for the car portfolio. I love what they did with Saturn. GM is smart enough to see that their European designed cars are doing very well and they can actually take advantage of it. However, what’s still holding them back when they go against the Japanese in this changing market is the flexibility of their manufacturing and the union they have to deal with. The big three Japanese are producing both cars and trucks in the same plant and can vary the % of each type of vehicle they produce per plant much easier than GM can. That’s how they can cope with this change in mixture of sales much easier. Nissan is producing more Altima in the Titan plant, same with Toyota producing more Camry in their Tundra plant and Honda producing more Fit in place of their SUV. That’s the kind of flexibility GM need to be able to thrive in this drastically changing environment.

[an]

GM does give a very compelling case for the car portfolio. I love what they did with Saturn. GM is smart enough to see that their European designed cars are doing very well and they can actually take advantage of it. However, what’s still holding them back when they go against the Japanese in this changing market is the flexibility of their manufacturing and the union they have to deal with. The big three Japanese are producing both cars and trucks in the same plant and can vary the % of each type of vehicle they produce per plant much easier than GM can. That’s how they can cope with this change in mixture of sales much easier. Nissan is producing more Altima in the Titan plant, same with Toyota producing more Camry in their Tundra plant and Honda producing more Fit in place of their SUV. That’s the kind of flexibility GM need to be able to thrive in this drastically changing environment.

[bsrsharma]

GM’s Market Value Is Only $7 Billion – Half That of Avon

How the mighty have fallen.

At one time, General Motors was considered the pre-eminent US corporation, a giant among giants.

But now, on news that Goldman Sachs reduced the company’s rating to “sell”, GM’s shares (NYSE:GM – News) have plummeted to less than $12, the lowest level since 1955.

That means the world’s largest auto maker has a stock market value of only about $7 billion. That compares with a market cap of about $56 billion in 2000, when the stock was at its all-time high of $94.62 a share.

To put that in even more perspective, GM’s market value is now roughly equivalent to that of tax-preparation provider H&R Block (NYSE: hrb) or toy maker Mattel (NYSE: mat).

Even more humbling for the auto maker, GM’s value is now:

* Half that of cosmetics company Avon (NYSE: avp)

* A third of cruise operator Carnival Cruiselines (NYSE: ccl)

* A quarter of Internet media company Yahoo! (NASDAQ: yhoo)

* A fifth of online auction house Ebay (NASDAQ: ebay)

* A sixth of retailer Home Depot (NYSE: hd)

* A seventh of biotech firm Amgen’s (NASDAQ: amgn) league

* An eighth of drugstore chain CVS (NYSE: cvs)

* A ninth of fast-food giant McDonald’s (NYSE: mcd)

Last, but not least, GM is now 1/66th the size of fellow Dow component Exxon. (NYSE: xom)

http://biz.yahoo.com/cnbc/080626/25392542.html

[bsrsharma]

GM’s Market Value Is Only $7 Billion – Half That of Avon

How the mighty have fallen.

At one time, General Motors was considered the pre-eminent US corporation, a giant among giants.

But now, on news that Goldman Sachs reduced the company’s rating to “sell”, GM’s shares (NYSE:GM – News) have plummeted to less than $12, the lowest level since 1955.

That means the world’s largest auto maker has a stock market value of only about $7 billion. That compares with a market cap of about $56 billion in 2000, when the stock was at its all-time high of $94.62 a share.

To put that in even more perspective, GM’s market value is now roughly equivalent to that of tax-preparation provider H&R Block (NYSE: hrb) or toy maker Mattel (NYSE: mat).

Even more humbling for the auto maker, GM’s value is now:

* Half that of cosmetics company Avon (NYSE: avp)

* A third of cruise operator Carnival Cruiselines (NYSE: ccl)

* A quarter of Internet media company Yahoo! (NASDAQ: yhoo)

* A fifth of online auction house Ebay (NASDAQ: ebay)

* A sixth of retailer Home Depot (NYSE: hd)

* A seventh of biotech firm Amgen’s (NASDAQ: amgn) league

* An eighth of drugstore chain CVS (NYSE: cvs)

* A ninth of fast-food giant McDonald’s (NYSE: mcd)

Last, but not least, GM is now 1/66th the size of fellow Dow component Exxon. (NYSE: xom)

http://biz.yahoo.com/cnbc/080626/25392542.html

[bsrsharma]

GM’s Market Value Is Only $7 Billion – Half That of Avon

How the mighty have fallen.

At one time, General Motors was considered the pre-eminent US corporation, a giant among giants.

But now, on news that Goldman Sachs reduced the company’s rating to “sell”, GM’s shares (NYSE:GM – News) have plummeted to less than $12, the lowest level since 1955.

That means the world’s largest auto maker has a stock market value of only about $7 billion. That compares with a market cap of about $56 billion in 2000, when the stock was at its all-time high of $94.62 a share.

To put that in even more perspective, GM’s market value is now roughly equivalent to that of tax-preparation provider H&R Block (NYSE: hrb) or toy maker Mattel (NYSE: mat).

Even more humbling for the auto maker, GM’s value is now:

* Half that of cosmetics company Avon (NYSE: avp)

* A third of cruise operator Carnival Cruiselines (NYSE: ccl)

* A quarter of Internet media company Yahoo! (NASDAQ: yhoo)

* A fifth of online auction house Ebay (NASDAQ: ebay)

* A sixth of retailer Home Depot (NYSE: hd)

* A seventh of biotech firm Amgen’s (NASDAQ: amgn) league

* An eighth of drugstore chain CVS (NYSE: cvs)

* A ninth of fast-food giant McDonald’s (NYSE: mcd)

Last, but not least, GM is now 1/66th the size of fellow Dow component Exxon. (NYSE: xom)

http://biz.yahoo.com/cnbc/080626/25392542.html

[bsrsharma]

GM’s Market Value Is Only $7 Billion – Half That of Avon

How the mighty have fallen.

At one time, General Motors was considered the pre-eminent US corporation, a giant among giants.

But now, on news that Goldman Sachs reduced the company’s rating to “sell”, GM’s shares (NYSE:GM – News) have plummeted to less than $12, the lowest level since 1955.

That means the world’s largest auto maker has a stock market value of only about $7 billion. That compares with a market cap of about $56 billion in 2000, when the stock was at its all-time high of $94.62 a share.

To put that in even more perspective, GM’s market value is now roughly equivalent to that of tax-preparation provider H&R Block (NYSE: hrb) or toy maker Mattel (NYSE: mat).

Even more humbling for the auto maker, GM’s value is now:

* Half that of cosmetics company Avon (NYSE: avp)

* A third of cruise operator Carnival Cruiselines (NYSE: ccl)

* A quarter of Internet media company Yahoo! (NASDAQ: yhoo)

* A fifth of online auction house Ebay (NASDAQ: ebay)

* A sixth of retailer Home Depot (NYSE: hd)

* A seventh of biotech firm Amgen’s (NASDAQ: amgn) league

* An eighth of drugstore chain CVS (NYSE: cvs)

* A ninth of fast-food giant McDonald’s (NYSE: mcd)

Last, but not least, GM is now 1/66th the size of fellow Dow component Exxon. (NYSE: xom)

http://biz.yahoo.com/cnbc/080626/25392542.html

[Author]

Posts