Why GM stocks are tanking?

[Msmith]

When GM folded last year and wiped out part of my retirement nest eggs/children college funds, I still hoped that given a fresh start with no baggage I might actually be a fool and reinvest its stock again. The IPO was $34 and the price did climb to about $38, but now it is $26! No, I didn't put any money in it but I just scratch my head while the stock is so bad? It does have a consecutive monthly profit and it sales in July was over 7% while the nationwide auto sale was in 1%.

[Reerun_KC]

Originally Posted by Stewie

What business are you in? Is it something that offers a cheap alternative to the way things were done before? Just curious.

The company I work for is doing well, too, but it's because of Asia and the Middle East, not what's happening in the US for sure.

Offshore staffing for IT services... My business partner and I own services centers in 2 different countries. And in negotiating in a 3rd country to help us take the pressure off of hiring.

We sell those people back to our US clients... We have grown from 6 total people to over 53 in 18 months...

Thankfully those countries are up and coming... its allowed us to grow our US and overseas offices... We are providing a good quailty of living for many people around the world, including here in the US...

[Chief Faithful]

I don't understand the confusion. Look at the used car market, it is booming and small efficient cars are appreciating. My son is an auto broker and it is near impossible to get a used Toyota, Mazda, Honda and even Ford for less than Blue Book value. Meanwhile, used GM cars are dropping value, nobody wants them. Same for new cars, nobody wants the crap small and midsize cars from GM. Even the much desired Volt only sold 124 cars last month nation wide.

GM stocks are tanking because their product sucks. No matter how much the President saves GM and props up the UAW the product still sucks.

[BossChief]

Originally Posted by Stewie

I have two coworkers that drive Malibus and love them. I've ridden in one of them once and it's a nice car. I don't know about reliability at all, but they've had no problems.

You can get a decked out corolla for 4k less than a base model Malibu and the reliability record on Consumer reports is night and day.

Shit, you can get a Altima Hybrid for about the same price as a Malibu.

If Chevy wants to make a sub average car (as they are rated in nearly every place that researches them) they should sell them for cheap as hell.

Let me ask you this...if you went to the store and Ribeye steak was the same price as ground beef, wouldnt you get the steak?

I sure as hell would.

[Bump]

In the mid 80's they realized that if they stop making cars with high quality and good longevity, they will sell more cars. Now, they and the consumers are paying the price for their greed. I've wondered why a company doesn't come out and be like, "hey, let's make cars like we did in the 70's??!??" It seems like too good of an idea to actually happen, there is probably a hidden law or an unwritten rule against that.

[Msmith]

No one will know the new cars rolling off from the GM plant would be junk cars until 3-4 years later. You guys base on the assumption of the past.

[tomahawk kid]

Last Chevy I bought was a 2005 Malibu.

We've had 2-3 major repairs (2 of which were related to a recall, but we were over the mileage cut-off) and I found rather quickly that GM wouldn't stand behind shit.

[PunkinDrublic]

I blame liberals and the damn unions.

[burt]

Originally Posted by Msmith

No one will know the new cars rolling off from the GM plant would be junk cars until 3-4 years later. You guys base on the assumption of the past.

Hey, give them a break.... they know it all about the car market.

[loochy]

Originally Posted by Bump

In the mid 80's they realized that if they stop making cars with high quality and good longevity, they will sell more cars. Now, they and the consumers are paying the price for their greed. I've wondered why a company doesn't come out and be like, "hey, let's make cars like we did in the 70's??!??" It seems like too good of an idea to actually happen, there is probably a hidden law or an unwritten rule against that.

The thing is that their short term greed took priority over long term company health. By the time they realized their problem, costs had already spiraled out of control and their reputation had been ruined. Even if they DO make good cars, everyone will just bash them anyway (as seen in this very thread). It will take a lot of work to turn this giant sinking ship around and keep it afloat.

[ChiefaRoo]

Originally Posted by CrazyPhuD

Apple could easily go bankrupt in less than 10 years...hell they've almost done it before for exactly the same reasons that it could happen this time. The only advantage they have this time around is that when it happened the first time their execution and marketing missteps were dealing with a MUCH smaller market for computers so they had less margin for error. Plus the general consensus is there is a tech bubble going on again. When recession hits it is likely to pop.

This might be one of the most uninformed posts of all time. "Errr, Apple could easily go bankrupt in ten years"


They have 76Billion of cash on hand. Even if you believed that their entire product line was vulnerable to competition and obsolescence they could play defense like Microsoft has and still be around in ten years by using the money to acquire competitors and bringing new products to market.

[ChiefaRoo]

Originally Posted by Reerun_KC

I think it will get much much worse before it gets better... This country has zero leadership and no true direction.

+1

[Reerun_KC]

Just bought my wife a used 2010 Malibu last night...

She loves it.

[Dayze]

Originally Posted by tomahawk kid

Last Chevy I bought was a 2005 Malibu.

We've had 2-3 major repairs (2 of which were related to a recall, but we were over the mileage cut-off) and I found rather quickly that GM wouldn't stand behind shit.

i recently ditched my '05 Malibu; had 88k miles on it. While overall it was a decent car, I couldn't believe how the quality degraded over the 6 years I owned it. I bought it with only 20k miles on it.
Replaced the intermediate steering shaft at 40k miles, and again at 65k; and it was ready for another at 80k but I decided I wouldn't replace it. Service bulletin issued, but they wouldn't replace it; so $350 a pop to replace it.

Rear window wiper would just come on for no reason and shut itslef off when it chose too. Constant alignment issues. Ignition would sometimes stay on after I stopped turning the key, causing the engine to continually try to 'start' (if that makes any sense); Radio would have random buzzing for no reason for several days, then go a week or so with clear sound, then it would start again. Power sterring/steering assist would stop working at random times, mostly in slow turns.

both seat fold-down lever thingys broke off

Rear plastic on the back of the front seats came loose on the passenger seat; so I had this dangling plastic piece the size of the seat always dangling around.


Overall, it was at least 'reliable' in that nothing blew up on it, never left me stranded etc; just very disappointed as a whole with the vehicle. Bought used VW Rabbit last month; 3 years old; 40k miles; four new goodyears, and new brake pads; 5 speed; for $13k. Fit/finish etc is night and day better. My Malibu at the same age was beginning to fall apart/have constant issues.

[BossChief]

Originally Posted by Reerun_KC

Just bought my wife a used 2010 Malibu last night...

She loves it.

it didnt throw up a red flag with how many USED 2010 ones there were for sale?

With the model year end sales already going on, or getting ready to start, you probably could have gotten a brand new Nissan Altima Hybrid (that gets 33 MPG with 200 hp) for the same coin.

Guys, go look at consumer reports to see for yourself how much a difference there is in reliability between Nissans or Toyotas and Chevy cars.

Its sad.

Especially being that the Chevys are more expensive.

On a Toyota brochure, it states that 80% of all cars/trucks they have made in the last 15 years are still on the road.

I bet Chevy is more like 50%...if that.

[Demonpenz]

I bought a chevy a couple years ago and it exploded killing my wife and kids. Chevy wouldn't even replace the vehicle.