GM's financial situation?

[scooter79]

I've been reading a bit of information saying that General Motors is in quite a bit of financial strife. Talk of GM going to court to get protection from it's creditors, if thats possible. Does anyone else have any info on this? What do you think will be the outcome. Whatever the outcome I'm sure it will have a big effect on car manufacturing here in Australia. Holden is owned by GM. Holden is the largest seller of all 'family' sized cars here and has been for many years. We also export some of our Australian made cars back to Pontiac in the US and rename them as GTO's. If GM goes bust then that will almost sound the death bell for Holden manufacturing in Australia. Car manufacturers in Australia are barely holding on by the skin of their teeth as it is. Any opinions?

[Princeslik]

Re: GM's financial situation?

GM has made leaps and bounds in the past 5 years. They have made a lot of improvements, they are still the industry leader in terms of gross revenues and are in better shape than Ford is. I strongly beleive that GM will not go bust. As far as any of their SBUs such as Holden, if Holden is doing bad like you say, the worst that will happen is they spin off Holden and another person or entity will acquire them. If you have any interest, a group and I are doing a 50 page in-depth report on GM for my Strategic Management class, i'd be happy to send you the final copy when it's done in a week if it would be of any interest to you.

[Nappers]

Re: GM's financial situation?

The problem with GM is that they make too many cars for too many countries and they worry about funds too much. I read an article that GM is now going to concentrate on making better cars than worrying about finances (GMAC, etc etc), duh!

That's why the past few years or less they have come out with better rides, the Silverado/GMC Sierra, new Crossover on the Lambada chassis, making Pontiac better with the new car from Australlia, the new Camaro etc. They have lost money this past year but compared to Ford who lost almost the same money, they are much larger than Ford so it doesn't seem that bad. Hopefully they can recover and still keep jobs here in the US as a lot of cars are manufactured out of country still.

Aaron

[PorscheGuy997]

Re: GM's financial situation?

I must give my two cents...

First off, most auto manufacturers in the US are hurting big time. The problem is that the information is always changing. Everytime I turn around, GM is supposedly trying something new to lower their debt. I read in Newsweek (have to read it for a class, but I can't stand it) that GM planned to buy Diamler Chrysler! That's the most outrageous thing I've heard in a while.

[scooter79]

Re: GM's financial situation?

Well the problem with Holden isn't really sales. Sales are pretty good but the real problem is the cost of production. Australian and American manufacturing cannot compete the cheap labour in China, Korea and Japan. But if Holden was to start manufacturing Australian vehicles offshore I'm sure there would be a revolt in sales and die hard fans would buy something else. It's more complicated than that I know, but just trying to sum up the situation here in a nutshell.