Quote:
Originally Posted by meissen
It's public knowledge so here's some facts to consider:
GM regained #1 manufacturer status recently (and already lost it), but even while it was #1, it was further down in the standings for profitability. What good is it being #1 in manufacturing if your profit margins are so small? Auto manufacturers that are a fraction of the size of GM had higher net profits than GM... that shows that we're doing something wrong.
Because of that, GM's new strategy is to not offload vehicles to the rental and fleet sales. Offloading vehicles like that devalues them, floods the market.
So yes - GM has lost market share... because it's not flooding the market by offloading their vehicles to rental and fleet sales at cut throat pricing. That's what got the "old" GM into the mess that caused the bankruptcy last time. The "who cares if we off load these cars to XYZ Rental at a $5 loss per unit as long as we're the #1 manufacturer" mentality doesn't fly anymore. In the meantime, all that people see is "less marketshare" or "no longer the #1 manufacturer" but they don't realize that it's because GM is actually following a positive strategy for once.
And yes - stocks are sliding, there's no denying that. I honestly have no clue why. It boggles my mind. GM posts record profits and the stocks decline. GM posts sales higher than expectations, the stock declines. Frankly, the anti-GM sentiment that the rest of the country has because of the bankruptcy and US Government *loan* just seems to put the odds against us. And that's where it's frustrating - the rest of the country wants General Motors to fail. Look at the responses in this thread already. If GM fails, then it really is the US taxpayers that are out all that money. But if GM prospers, if GM's stock actually were to go up enough, the US government could cash out of that stock ownership at a profit. It's VERY slim odds of that happening, but it's the stock market and anything's possible, right?
And that's where I sit here dumbfounded when I see these threads and replies. It's our tax payer money. We should be doing everything we can to cheer GM on. To do better. To make better cars than the rest. To sell at higher profits. To be the #1 auto company. We're all invested in GM whether some like it or not, if we got the stock prices high enough the US Government could cash out and it'd no longer be "Government" Motors.
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Just want to say....GM sales were up 3% in the last quarter....and profit was obliterated and dropped 41%.
That is a hard, undebatable, set in stone fact.
Still wondering why stock is slipping?