GM shares plunge after analyst sees them hitting zero

Good, GM needs to fall after not giving the customer what they want for all this time and for giving diesel a bad name.

Wow, the Germans really need to get their Narcissistic Personality Disorder under control. Every German I've met has this problem.

The problem with anyone from Europe commenting on the USA is that they don't have a clue what they're talking about. They only know what their spoon-fed socialistic media is telling them. Our media here leans way left, but at least most of us are smart enough not to believe everything we're told by them. For you narrow minded Germans on here to start citing statistics used by the Obama campaign only shows how ignorant you are.

In case you're wondering, I've never been to church, don't own a gun, and I voted for McCain. I drive a BMW now, but after hearing the hatred for our country coming from you, my next car will be made in the USA.

bimmerfan25: Again, your ignorance precedes you. From your comments it's obvious you have no idea what you're talking about. You may want to look up Narcissistic Personality Disorder, you fit the description exactly. Hillbilly... I'm literally laughing; you couldn't be further from the truth.

Hate to say it but bimmerfan is correct on some things that he's saying. I don't give a rats ass how much my annual income is, as long as I have free healthcare...like Europe does (not USA)

Watch "Sicko" by Michael Moore...it does open your eyes.

Us Americans have been living in a dreamland for decades, thinking that the whole world revolves around us. Ahhhh well, I think we're jus finding out that it doesent!


G

"I don't give a rats ass how much my annual income is, as long as I have free healthcare...like Europe does (not USA)"

Wow.... Let's see; I don't care if I have job that makes $15 per hour or $30, ($30k per year vs $60k) as long as I get free health care. Seriously?! People I think we just found out what's really wrong with the country. Maybe we need to have at least one more basic economics class in high school. I'm sorry, but with people like this running around it's no wonder our economy is failing. Listen people, don't believe what Obama has told you health insurance costs, or for that matter even McCain. Insurance companies charge employers way more for the same insurance you can purchase yourself. I pay for my own health insurance, it's $105 per month. I think most people weren't paying attention to Obama when he talked about his healthcare plan. He specifically said he's going to allow the general public to "purchase" the same health insurance the government employees get. It's not going to be free and I bet it's going to be more than the $105 per month I pay.

As for the healthcare in Europe, you may want to get a second opinion on that. My best friend married a woman from Germany. Her father was just in the hospital. He laid in a hospital bed with chest pains for 5 days waiting for a simple test to find out he had a blocked artery in his heart and needed a by-pass. They were too busy with other people. It's not quite the same level of healthcare that we get here.

TurboSpider, I jus wanna know where are you from? where do you live now?


G

Germany population- 82,000,000

US of A population- 300,000,000

So whats your point on Nobel prize winners? That USA is superrior, no? Just wondering.


G

WOW, for you too. So if you make 60K and lets say you HAVE NO insurance. One day you get really sick and need bunch of surgeries...without insurance your 60K would be gone in 4-5 day stay in hospital.

Now if you make 30K and HAVE insurance coverage, and need same surgeries as person that makes 60K, your stay in hospital will be close minimal compared to when you nave no insurance.

My point is, I rather make 30K per year and have insurance THAN make 60K without insurance.


G

I live in a state that doesn't have unions (that I know of), and generally have only heard problems from them. Would it be possible for GM to file for bankruptcy and in the process get the unions dissolved? Would that, and of course building a better car, help them with their financial issues?

They are making great cars now, but it seems they got the memo too late (or hopefully almost too late). They foolishly put a lot of stake in the SUV market and continually have money sapped away by the UAW. When your forced to use people instead of machines to mass produce cars, the cars weren't always reliable. This catch-22 has plagued us since the dawn of supercomputers. Sucks.

Haha.

Good, sorry UAW Christmas has been cancelled.

The sad part of this is that after decades of building complete crap for cars, GM is producing some decent product.
A friend's Acadia has amazing power and mileage for an 8-seater, and I had a Malibu rental while at SEMA last week and I was very impressed with how well they copied the A6, right down to the power-window controls. The Malibu looks great inside, in sharp contrast to the drab black, "no plastic is too cheap for GM" interiors of the past.

But I guess its too little too late. Chasing those big SUV profits and ignoring our changing world may have cost them the company.

About the only thing of value now is the dealer network, which should be highly prized for a "new entrant" into North America ... maybe we can expect a purchase of GM by a Chinese automaker, or even Mahindra and Mahindra???

Nobody will buy GM because they owe SO much more than they are worth right now. Even if you get the huge (not great but large) dealer network you take on a HUGE amount of debt.

Fellas, your scope of the issue is way too narrow. Yes, GM deserves to die "and I hope they burn in hell" (sorry, couldn't resist). But GM can't die, just like AIG can't die either. It's would cause a catastrophic domino effect on not just Americans, but the global economy as well.
If GM dies, thousands to hundreds of thousands become unemployed by GM.
The ripple effect would continue to the supply chain, the suppliers. Those companies would be forced to layoff employees or go under as well. Then we are talking hundreds of thousands to millions unemployed.
I haven't even gotten to the investors and creditors involved. Individuals 401K plan have investments in funds that incorporate some of the companies that would all fall.
They fall, so will your 401K. Etc., etc., etc.

Yeah, it's a simplistic explanation but it's better than just saying that GM should reap what they sow.

(...Ah, ain't life great?)

Its 100% GM's fault they are in the shitter right now. They do deserve to die.

@ damikco,

LMAO

If GM goes to Zero or they file bankrupsy, or significantly cut production further, they will take the whole Stock market and economy with them into the tank and out to sea.

Jaws will drop as people watch the big board.

People will be speechless.

Everyone will look at eachother in disbelief wondering who is next to be wacked.

DieselRules:

I noticed the Audi copy on my friend's new Cobalt. The guages (Tach and Speedo) look very similar to Audi.

I could care less though, because it makes a cheap car look really upscale inside.

Besides the Hundyia Genisis copied many attributes of the Mercury Grand Marquis (4.6L V8, Long flat dashboard, Rear Drive Sedan) Then Hundia upscaled it to a 21st Century car by adding an 8-speed Auto, and upfitted electronics to the dash, and finally rounded the fenders a bit to make it less obvious that it is a 4 door sedan.

Despite the obvious musings of the young kinder on this post, GM's current problem is exactly the union contracts. They and the UAW both share equal blame for getting into the mess they are currently facing, after all it took two to tango, and GM leadership signed the Work Contracts both past and present that resulted in total employee costs averaging over $30 an hour more than their competition in Japan and Germany.

GM has massive debt built up from unfunded pensions, and employee benefit costs that far exceed those paid by any other corporation in America. This is a product of 50's and 60's corporate thinking coming home to roost. While recent union deals have been on fair terms, the past debt is still loomimg and growing. GM depended on a constant revenue stream from sales, even at a loss sometimes, to meet these debts, while competitors in non UAW factories generated profits.

Funny how the best selling cars in America are made in America by American workers on American corporate healthcare plans, i.e. Honda, Toyota, Hyundai, Nissan, and even BMW and Mercedes, yet they do not face collapse. The auto market is tough for all right now and all manufacturers are feeling the pain. GM is in a hole that requires current sales to meet previous debt and the economic slowdown is something they can not weather. This is an issue the various management teams have inherited and never formulated a workable plan to address it.

The only options left are a bailout or bankruptcy. Notice it is democrats pushing the bailout option when they raised all kinds of hell with the stimulus plan for investment banks? Why? Who do unions give hundreds of millions in campaign donations to? Exactly. The bailout would set aside $25 billion for "Healthcare" i.e. the UAW and $25 billion for operations i.e. GM management... Nothing to fix a broken and bloated business model...

The best answer is let them fail, which I guarantee GM management is hoping for, as it is the only way out of the stranglehold of employee and retiree "benefit" packages that suck up massive GM capital. Then the govt. i.e. a democrat congress steps in with employee bailouts, while the primary debtors set up a plan to rebuild GM from the ground up with no looming pension and UAW debt, but with new contracts with workers, and new plants in southern US States with competitive labor plus tax advantaged legislation.

GM going away for good will not happen. Too many investors holding debt with too many assets available to put to use. The company will come back, but as a new legal entity, under new ownership via the investment banking world with working capitol pouring in, and it will be an American company with solid products able to compete anywhere in the world. But, none of this will happen without the investment capitol, and no IC banker in their right mind will buy in with the current UAW contract and debts still obligated to the company's assets.

So let it fail, let the courts