GM Recall, GM is done
So much has happened at General Motors in just the last few years. Kirk Kerkorian, a billionaire investor bought in heavily then sold out just a year later for his casinos. They’ve been sued numerous times for safety of vehicles. Employees have been fighting for their pensions. Now, 200000 sedans have been recalled for risk of fire. General Motors went as far to say that the car should not be parked in a garage until it has been checked.
The sedan was GMs chance to get back into the American auto market. Most new automobiles that GM produces are SUVs, which have experience slowing sales numbers as the price of gas rises. With the latest 200,000 car recall, I don’t think buyers will have much faith in GM quality, yet alone in their sedans. The credit crunch isn’t making it any easier to buy a car either. Car loans are in short supply after the constant recession worries and new lows in bank reserves.
Worst than their recall is the amount that GM is now paying to its retired employees. General Motors now pays more than $1000 in pensions for each car produced, edging itself out of the competitive auto market. Toyota and Honda have boomed from GM’s falling marketshare. Toyota and Honda do not have to cooperate with the feisty UAW which has practically bankrupted GM.
Technicals say that General Motors is a great investment, but even at this price there isn’t much to fall back on. GM’s best sellers are all large SUVs, they have no real marketshare in the compact car market. The future revenue streams for GM are virtually nonexistent. Its time for a short, let this one go.
With all the new high tech GM is about to come out with, I’ll put my money with them. This is a different GM! They have the capability and the know how. With it’s new contract which will pay their workers a lot less than Toyota does, it will make the difference. GM had been loafing for the last 25 years but that’s no longer the case. As for recalls, Toyota has had more of their share. In time people will realize they are not as great as Consumers Report lead you to believe.
GM is done. Anyone with a brain can see it coming. DO NOT get involed with GM.
I am an automotive mechanic and used to drive nothing but Chevies. Now I consider them just a bad joke… they build nothing but cheap, unreliable cars with no resale value. I no longer even work on them. I love Toyotas because they are great to work on and they make me look like a hero because they are so reliable..(people think its something I’m doing) I will be driving Toyotas for a long time. Let GM Ford and Chrysler die like Studebaker, DeSoto and the Edsel
Pete