TxTwo
Texas
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Joined: 04/08/2007
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The old saying was that "As GM goes, so goes the Nation!" Well - let's hope that is no longer the case, because things don't look so good for the venerable auto maker these days. It slid 15% more today, after Merrill Lynch's downgrade. A sad barometer of the times.
As reported by Reuters:
Merrill says GM bankruptcy possible
Wednesday July 2, 12:42 pm ET
By Soyoung Kim
DETROIT (Reuters) - General Motors Corp (NYSE:GM - News) will need to raise as much as $15 billion in cash to shore up liquidity and bankruptcy is "not impossible" if the U.S. auto market continues to slump, Merrill Lynch said. See rest of the article in link below:
Here
TxTwo
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houtrz
Lake Jackson Texas
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Joined: 05/15/2005
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I hold as much faith in them as I do in Goldman Sach's saying oil will go up twenty bucks in the coming weeks and then its up three bucks before the end of that days trade.
I know GM isn't in good shape but for crying out loud, I think alot of what drives the market is what some people say might happen, then others react moving their money in or out, causing real price flucuations.
Do to a cost savings idea, the light at the end of the tunnel has been turned off.
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8.1 Van
Millstone NJ
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Joined: 03/20/2008
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"GM was down 15.1% to $9.98 at the close after Merrill Lynch analyst John Murphy said the company needed to raise up to $15 billion in new capital to get through 2008 and 2009."
GM bankruptcy fears drive down Dow 167
BTW oil hit another all time high of $144.25 and that is GM's big problem since they were only making money on SUV's and trucks.
FKA PSDExcursion
2002 Chevy Express LS 3500 8.1 155" WB passenger van 3.73 posi (GT4/G80)
41 Ft 2003 Thor Citation 41-ZBSR TT w/ Hensley Arrow
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Skid Row Joe
America, Tent Camping and RVing since 1960
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Joined: 04/26/2006
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Old news. They were headed for Chapter 11 long ago. It's too bad they couldn't keep pace with the consumer needs. By some estimates, GM is reportedly losing about $1 Billion dollars a month.
That's a lot for a company that is only estimated to be valued at $6 Billion.
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jcapps
Not a senior just a
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Joined: 08/18/2004
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This is just the start. If some relief is not insight to the oil prices and the failing dollar, there will be other established companies closing on a on a weekly basis.
The smaller businesses are failing around here. Many different types closing their doors.
This will have a domino effect on the economy, unemployment will rise.......rapidly
If you think it is not going to effect your little part of the world you better prepare anyway
"The great challenge of adulthood is holding on to your idealism after you lose your innocence."
– Bruce Springsteen
"This ain't the practice round"
- a friend
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TxTwo
Texas
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Joined: 04/08/2007
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Yeah - Joe - it has been coming for some time - but it now seems more likely than not - and that is too bad. The fuel prices have done in the trucks and SUVs and that may be the final nail in the coffin for both Ford & GM. You are right - they just couldn't compete or produce the right product at the right time.
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Skid Row Joe
America, Tent Camping and RVing since 1960
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Joined: 04/26/2006
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I quit buying their products in 1976. I had bought a new Chevrolet Corvette fully loaded. What a nightmare in it's defects. I promised never again, that was 32 years ago. So far I'm loving the brands that I replaced the GM cars with.....far superior quality. Oh well.....life goes on, this ain't the practice round.
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96Bounder30E
Birthplace of the Boysenberry, Orange County, CA
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Joined: 11/21/2002
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The problem as I see it is......GM can only look into the future about 6 months.....where as Toyota looks into the future several years ahead......the car makers had to know these gas prices would show up eventually......yet GM and Ford is still making large trucks and SUV's.......
Toyota can't make the prius fast enough and GM can't slow down their production of non selling cars and change directions fast enough.......Sad!
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TxTwo
Texas
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Joined: 04/08/2007
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96Bounder30E -
The same can be said for Ford. We tried to buy a Focus for our granddaughter and none could be found anywhere in our area. Our local dealer is still looking for one for us. Like GM - Ford was caught behind the times, mass producing the vehicles nobody could afford anymore - and not producing near enough of what the consumer wanted in the changing times, which you are right, their high paid economists should have seen coming.
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gasbag
Washington State
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Joined: 02/13/2004
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Anything is possible.
Be sure to watch out for that asteroid that is going to hit us on Sept. 19th.
Why do people pay to go up tall buildings and then put money in binoculars to look at things on the ground?
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