GM in trouble

[redorange]

Now that banks have tightened credit, only the most credit worthy borrowers get loans (very high FICO score)

that's only a small fraction of consumers

I don't believe that most buyers don't qualify it's more of that they are not buying at the moment because of the uncertain economy. BTW it's not just the big 3 struggling with sales it also the foreign brands. Toyota has Toyotathon offering cashback or low interest, Nissan has 0% interest, Honda has 1.9-3.9%, Mazda has 0% interest, and those are the same things being offered by the big 3 but there are still no buyers for these cars. A lot of the people I know have credit ratings that would qualify but they just refuse to make any big ticket purchases with the current economy. Although I do have 2 co-workers that just bought 3 cars between them in one week.
Would it help if people spent their money? Sure. But who wants to spend money when you are not sure how bad things will get before it gets better.

To say that the big 3 have fallen because they depended on consumers who use credit to buy cars is inaccurate because all the car makers in the US depend on credit to make any sales. Even if someone had the money to pay cash they don't because you can get a very low interest loan, take the money put it in a CD and get interest higher than the loan, pay off that loan later and make money in the end. Did they lose sales because cars were not fuel efficient? Yes and No. Up until price of gas went up to $4-$5 that wasn't an issue with the US car buyer as a matter of fact those small cars didn't sell very well. Before the gas prices all the US buyer wanted was a good quality car and unfortunately the big 3 didn't do much of that unless you bought a full size truck. Did the buyers care that the truck only got 15mpg at most? No. Since gas prices have come down they may go back to that thinking because the small fuel efficient cars are not something that fits the driving landscape of this country. Who wants to drive across the state in a small car? Heck, I bet if the Philippines roads were wider, had freeways, gas was cheap, and cars more affordable most Pinoys would rather have a big gas guzzler to drive around rather than a 800cc Alto or 1.3L Avanza(nothing against those cars). Comments being made in this forum about Americans finally paying for their waste and disregard of fuel and the environment is ridiculous. Because most everyone would have done the same thing given the same situation. Just look at all the Pinoys who come to this country and buy those big engined gas guzzlers.

[uls]

I don't believe that most buyers don't qualify it's more of that they are not buying at the moment because of the uncertain economy. BTW it's not just the big 3 struggling with sales it also the foreign brands. Toyota has Toyotathon offering cashback or low interest, Nissan has 0% interest, Honda has 1.9-3.9%, Mazda has 0% interest, and those are the same things being offered by the big 3 but there are still no buyers for these cars. A lot of the people I know have credit ratings that would qualify but they just refuse to make any big ticket purchases with the current economy. Although I do have 2 co-workers that just bought 3 cars between them in one week.
Would it help if people spent their money? Sure. But who wants to spend money when you are not sure how bad things will get before it gets better.

To say that the big 3 have fallen because they depended on consumers who use credit to buy cars is inaccurate because all the car makers in the US depend on credit to make any sales. Even if someone had the money to pay cash they don't because you can get a very low interest loan, take the money put it in a CD and get interest higher than the loan, pay off that loan later and make money in the end. Did they lose sales because cars were not fuel efficient? Yes and No. Up until price of gas went up to $4-$5 that wasn't an issue with the US car buyer as a matter of fact those small cars didn't sell very well. Before the gas prices all the US buyer wanted was a good quality car and unfortunately the big 3 didn't do much of that unless you bought a full size truck. Did the buyers care that the truck only got 15mpg at most? No. Since gas prices have come down they may go back to that thinking because the small fuel efficient cars are not something that fits the driving landscape of this country. Who wants to drive across the state in a small car? Heck, I bet if the Philippines roads were wider, had freeways, gas was cheap, and cars more affordable most Pinoys would rather have a big gas guzzler to drive around rather than a 800cc Alto or 1.3L Avanza(nothing against those cars). Comments being made in this forum about Americans finally paying for their waste and disregard of fuel and the environment is ridiculous. Because most everyone would have done the same thing given the same situation. Just look at all the Pinoys who come to this country and buy those big engined gas guzzlers.

i wasnt only talking about the big 3

i know all carmakers are affected

i posted a chart above showing that

[redorange]

Reality check for the industry. I think the big, expensive, gas guzzling cars are now gone. From now on small, inexpensive is the way to go. Cars that people can really afford and don't have to go into debt just to get it.

Just how cheap do you think these cars are so that people don't need to go into debt for their purchase? Because the Fit will not leave a dealership for less than $15K, Yaris at least $14K, Versa maybe $12K, Aveo $13K, Accent about $12K, Focus $17K, and Caliber $17K. People will not pay cash for that amount and will still be in debt if they buy these cars. Alto, Picanto, Getz maybe? Nope not sold here. Smart car a nice small car fuel efficient and safe right? Well right now it starts at $11,995 and good luck finding a dealer to sell it at that price because there is a waiting list and prices are higher. BTW drive that on the freeway and see if your life doesn't flash before your eyes as a big rig passes by at 75mph/120km/h. Diesel engined cars? Well, only a few have managed to pass the smog laws of California which apparently a lot of states are now copying and those get more stringent every year and since diesel is more expensive people don't want to buy it also. BTW(don't know if you're even old enough to know this) everybody thought that big gas guzzling cars were done in the 70's but when gas prices came down they came back and now everybody thinks they will be gone again and when prices come down they'll be back again.

[Burai]

*AG4 and redorange
masyado niyo namang hinusgahan post ko na ok lang magsara GM... what i mean there was sige magsara na kasi kung naprepredict na nilang malulugi na sila, better stop it than having debts pa na palaki ng palaki in the days to come. pero still, that's my fault for not explaining things why
gusto ko lang ipoint out na parang sa statement ni uls yung sagot kong ok na magclose sila.

working in a company that gives employees a lot of benefits is great

but u have to look at how much it costs the company and how profitable the company is

GM is still living in its glory days

oo number 1 ang GM dati

kaya GM can afford to provide above-industry-standard employee benefits

pero GM's market share has been declining for decades

and it is still providing the same above-industry-standard benefits to its employees

How the hell can GM afford that?

it's not sustainable

i understand din kasi sa news na nabasa ko sa yahoo na "they're just extending the unevitable" something like that yung statement by someone i think from the congress. natauhan lang ako dun kaya naaalala ko yung quote niyang yun just don't get me wrong na ayaw ko sa mga US automakers

[Camgen6]

I don't think the U.S. government will let the big three shut down. These are American Icons. Malaki ang pride ng America just to let the Japanese, Koreans, Germans and Chinese cars running on America's freeways lol.

Wow I just read it on BBC news...

"The chief executives of Ford and GM have even offered to work for $1 a year if Congress approves the emergency aid".

Pag nagkataon mas malaki pa ang suweldo natin sa kanila.

* Redorange, tama ka I've seen those small vehicles (called Fit for Two) on freeways, I'd rather spend extra money for gasoline than to be inside those cars on freeway. I've first seen those in Italy never would I have imagined that they will make it here in the U.S.

[Gen. Miting]

Reality check for the industry. I think the big, expensive, gas guzzling cars are now gone. From now on small, inexpensive is the way to go. Cars that people can really afford and don't have to go into debt just to get it.

in the mid 50's, dumadami yun suv like big cars na parang taxi sa UK ngaun. nagkarun ng crisis sa oil turn of decade, bumalik tao sa smaller cars

in the mid 70's, dumadami yun suv na meron wood sa gilid saka yun mga ginagamit ng Texas Rangers na Ford Bronco, come 80's balik mini-cars and timing ang japanese cars

ngaun mag-turn ulit ang decade, to 2010, the people of the world will again dispose of the big cars and settle for smaller ones

history always repeats itself. generation gap talaga.

[AG4]

* Redorange, tama ka I've seen those small vehicles (called Fit for Two) on freeways, I'd rather spend extra money for gasoline than to be inside those cars on freeway. I've first seen those in Italy never would I have imagined that they will make it here in the U.S.

Are you talking about the Smart ForTwo?


Update:
Nardelli: Chrysler needs $4 billion now, willing to merge with GM

The CEOs of Chrysler LLC and General Motors Corp. said they would look at a forced merger if it were a condition of government financial assistance.

The merger talk and admission from Chrysler CEO Robert Nardelli and GM CEO Rick Wagoner that they might not survive without immediate financial aid overshadowed Nardelli's testimony that Chrysler needs $4 billion to get through March 31, and that it would begin repaying its proposed $7 billion loan in 2012.

http://www.detnews.com/apps/pbcs.dll...62/1148/AUTO01

[Camgen6]

Are you talking about the Smart ForTwo?


Update:
Nardelli: Chrysler needs $4 billion now, willing to merge with GM


http://www.detnews.com/apps/pbcs.dll...62/1148/AUTO01

AG4, smart for two pala tawag not fit for two, yeah yan nga.

[kinyo]

Now that oil price has lowered, don't automakers expect surge in sales anytime soon?

[uls]

^^
nope. the problem isnt oil price

the problem is tight credit

and consumers minimizing spending coz of bad economy

many people have lost their jobs

and those who still have a job, they don't know for sure if or when they will lose their job

not exactly a good time to buy a car