I tracked the GM share price for a while in 2005 and could never work out why anyone would want to invest in the auto maker as there was so much going against the business. If I shorted stocks (I don't) this would have been constantly in my top 10 shorters for the last 5 years.
GM is a microcosm of many of the problems faced by many economies at present. It operates on the never-never and urgently needs radical reform. The sooner it gets some harsh medicine, the better. It's 10 years overdue. Don't get me wrong, there are some good bits to GM, but they are dragged down (and drastically outnumbered) by the bad bits.
One to keep an eye on. I'm hoping Fiat takes GM Europe and wields the axe big time. That gives the business a fighting chance of succeeding.
Good to see your blog is back in action - just as things are starting to move again after winter hibernation.
ReplyDeleteNot sure even Fiat is going to be daft eneough to take on both Crysler and GM Europe (where on earth it is planning to get its financing?) - http://news.bbc.co.uk/2/hi/business/8073127.stm
Yup - Fiat seem to have pulled out. Now just this mystery Magna people from Canada. Big business ($25bn turnover) but will it work??
ReplyDeleteIt's unfortunate that the driver for the decision seems to be who will do the fewest cuts rather than who has the most viable plan...