Is this true? General Motors At Critical Risk Of Going Out Of Business?

oldman said:
How many people keep a vehicle for 10 years? Probably not too many. My wife changes cars every 2-3 years. She does well with trade-in value. She keeps the DMV busy.
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I do! and I give them names. My vehicles have saved my life, many times. To me, they have a certain aliveness!
I maintain and care for them.
 

Well isn't there a computer part shortage? That was my understanding. And today's cars run on computer parts so no parts, no cars. No cars, no sales. Plus who can afford them now? I don't have $30,000 to buy a car. Can't afford to make car payments. Plus that computer stuff is costly to repair. And with talk of switching to hybrid cars maybe people are holding off to see what the government is gonna do. If they mandate those hybrids I will be hoofing it cuz I simply can't afford one.
 
Knight said:
Another car maker with an excellent warranty. My son has one that has over 100,000 miles & the only repairs needed were batteries & spark plugs.
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Exactly Knight. An old hogger friend of mine has the Armada. Tons of gadgets in the standard package that would cost 3 large as options on American SUV's. What I really love are the so called "required" options that if you don't want them then the car won't run.
 

FastTrax said:
This dyed in the wool proud U.S. citizen feels that since 99% of worthless overpriced American vehicles are assembled elsewhere so to Hell with GM. Long live Nissan.
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Yes, If you look closely at the window sticker, most cheaper American "brand" cars are assembled in Mexico or Canada....and the primary U.S. content is the nameplate. Meanwhile, many foreign brands are assembled here, and use mostly U.S. manufactured parts. A report I saw awhile back showed the Toyota Camry as being the most "American Made" car.

The US automakers often blame high labor costs for their offshore manufacturing, but it seems that the foreign brands don't have any problems using US labor.
 
fuzzybuddy said:
The auto industry is always the indicator of coming economic trends, so maybe something is in the wind.
And not having chips for your cars seems like a lousy excuse. You'd think GM would have a backup plan for such a vital component. Stuff happens, and it sounds like poor planning, considering normal chip production has been out for 4 years. And we have enough chips for millions of phones????????
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The issue with the chips is that their components are manufactured in 5 different countries. Also, one of the countries the metals are mined from is in a war zone right now.
 
IMO the government supports the automobile industry, airlines, etc… as part of our national defense strategy.

Let’s hope we never need to rely on our industrial strength the way we did during WWII.
 
Aunt Bea said:
Let’s hope we never need to rely on our industrial strength the way we did during WWII.
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I have thought about that, not sure what would happen. In both WWI and WWII we provided a lot of the equipment and supplies that resulted in wins.

We can't do the same now, and with things so dispersed no one country or alliance of countries likely can. I'd like to think that would make war less likely, but going to war is rarely thought out rationally.
 
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Alligatorob said:
I have thought about that, not sure what would happen. I both WWI and WWII we provided a lot of the equipment and supplies that resulted in wins.

We can't do the same now, and with things so dispersed no one country or alliance of countries likely can. I'd like to think that would make war less likely, but going to war is rarely thought out rationally.
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It never occurred to me that weakness could be our best defense. 🤔
 
In modern times America has never had to battle an adversary on our own soil so our chances of success would be greater then our historical efforts in transporting our conventional resources off continent to aid our overseas allies. If we have to resort to increasing our chances of success or even survival is if we are the targets of a preemptive nuclear first strike our only concern is having enough fuel for our nuclear capable bomber fleet and it's protective fighter air assets. IMHO our land based ICBM and undersea warfare submarine fleets are ready to respond rather quickly.
 
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If GM goes bankrupt China will take them over. They already build and sell more Buicks in China than in the US. Smallest Buicks sold here are China built.
 
Don M. said:
Yes, If you look closely at the window sticker, most cheaper American "brand" cars are assembled in Mexico or Canada....and the primary U.S. content is the nameplate. Meanwhile, many foreign brands are assembled here, and use mostly U.S. manufactured parts. A report I saw awhile back showed the Toyota Camry as being the most "American Made" car.

The US automakers often blame high labor costs for their offshore manufacturing, but it seems that the foreign brands don't have any problems using US labor.
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As far as I know, foreign manufacturers are locating in right to work states so union membership is not required.
 
Robert59 said:
General Motors is known for its innovative cars and efficient engineering. As one of the long-standing American car brands, many believe that its a company that will outlast any market fluctuations. Recently, though, General Motors took a surprising dive in its net income according to its second quarterly report. The automotive company fell 40% in net income from last year due to a combination of manufacturing and economic factors.

https://www.tellmebest.com/general-motors-going-out-of-business/
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Well, if "tellmebest.com" says GM is going out of business, it must be true! :rolleyes:
 
Chet said:
As far as I know, foreign manufacturers are locating in right to work states so union membership is not required.
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Before I would lay blame on the UAW, I would consider the underfunded pension plans or legacy costs of the big 3. Granted the unions went right along with the underfunding back in the glory days, but it has come back to bite and has been for a couple of decades. I cannot say for certain, regarding all transplant companies, but one transplant company, I know of, fully funded their pensions from the get go and even set aside the funds to individual workers, via a 3rd party. No throwing to the wolves like the retired Chrysler workers in 2009.

As for pay and other benefits, it generally matched UAW pay and other benefits, prior to the UAW and big 3 negotiating the 2 tier system. The lower tier being for people hired after a certain date and the hope the top tier would soon retire. Just sayin'.
 
Harry Le Hermit said:
underfunded pension plans... No throwing to the wolves like the retired Chrysler workers in 2009
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I don't know what happened to retired Autoworkers in 2009, and sure don't want anyone to lose retirement benefits.

However we all need to be aware of our retirement plans, how they are funded, and what the risks are. Need to make informed decisions throughout our lives.

The government should not be bailing these out. Any more than I would expect the government to rescue me if the stock market collapses and my 401k becomes worthless...
 
Alligatorob said:
The government should not be bailing these out. Any more than I would expect the government to rescue me if the stock market collapses and my 401k becomes worthless...
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I would agree, however these companies are so intertwined with suppliers and usage of similar components through commonization. One supplier might be supplying parts to several companies and failure to pay that supplier, could take them under and then the entire chain collapses.

Long gone are the days when companies like Ford had a River Rouge complex that processed its own iron ore, parts, components, etc. and were in total control and owned their entire supply chain, or vertical integration.
 
Americas Corporate Welfare Scams:

1. Bayer/Monsanto

www.bayer.com

www.monsanto.com

www.periodismoinvestigativo.com/2017/03/a-corporate-welfare-red-carpet-propels-gmo-seed-companies-in-puerto-rico/

https://media.bayer.com/baynews/bay...s-to-resolve-major-legacy-Monsanto-litigation

https://en.wikipedia.org/wiki/Bayer

https://en.wikipedia.org/wiki/Monsanto


2. General Electric

www.ge.com

www.alaskapolicyforum.org/2011/10/general-electric-corporate-welfare/

https://en.wikipedia.org/wiki/General_Electric


3. AMTRAK

https://www.amtrak.com

www.cagw.org/thewastewatcher/amtrak-throw-money-train

https://en.wikipedia.org/wiki/Amtrak


4. Airline Industry

www.iata.org

www.kmov.com/2022/02/10/news-4-investigates-millions-tax-payer-dollars-go-mo-airports-that-dont-need-it-its-problem/

https://en.wikipedia.org/wiki/International_Air_Transport_Association


5. General Motors

www.gm.com

www.reuters.com/article/us-autos-gm-treasury/u-s-government-says-it-lost-11-2-billion-on-gm-bailout-idUSBREA3T0MR20140430

https://en.wikipedia.org/wiki/General_Motors

 
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MarciKS said:
Well isn't there a computer part shortage? That was my understanding. And today's cars run on computer parts so no parts, no cars. No cars, no sales. Plus who can afford them now? I don't have $30,000 to buy a car. Can't afford to make car payments. Plus that computer stuff is costly to repair. And with talk of switching to hybrid cars maybe people are holding off to see what the government is gonna do. If they mandate those hybrids I will be hoofing it cuz I simply can't afford one.
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Since I've returned from my wanderings in South Amer. I only take Uber or God forbid a dirty, falling apart taxi, when I need to go out. It's much more cost effective than buying a car considering the initial cost of buying one then the auto licensing, insurance and cost of gas these days. It's a bit more inconvenient but saves me thousands!
 
Just my opinion, but I think part of the issue is that American cars are not considered "bespoke" brands like Lexus, Range Rover, Mercedes, Audi, etc. but GM is charging just as much as the foreign brands. I just looked at Cadillac's website, and an Escalade V costs an eye-watering $150k. For that amount, I would buy an Audi RSQ8.

I'm sure their vehicles are nice, but Cadillac doesn't have the panache it had back in the day. And very few of their divisions have sedans to compete with the Germans, Japanese and Koreans. They have already lost Oldsmobile, Pontiac and Saturn due to poor product planning. I would not be surprised to see them fold completely. Sad times indeed.

https://www.cadillac.com/home?s_tnt=565152:1:0&adobe_mc_sdid=SDID=37403D41ED33F4AC-479C977537B52245|MCORGID=757A02BE532B22BA0A490D4C@AdobeOrg|TS=1659149754
 
dseag2 said:
Just my opinion, but I think part of the issue is that American cars are not considered "bespoke" brands like Lexus, Range Rover, Mercedes, Audi, etc. but GM is charging just as much as the foreign brands. I just looked at Cadillac's website, and an Escalade V costs an eye-watering $150k. For that amount, I would buy an Audi RSQ8.

I'm sure their vehicles are nice, but Cadillac doesn't have the panache it had back in the day. And very few of their divisions have sedans to compete with the Germans, Japanese and Koreans. They have already lost Oldsmobile, Pontiac and Saturn due to poor product planning. I would not be surprised to see them fold completely. Sad times indeed.

https://www.cadillac.com/home?s_tnt=565152:1:0&adobe_mc_sdid=SDID=37403D41ED33F4AC-479C977537B52245|MCORGID=757A02BE532B22BA0A490D4C@AdobeOrg|TS=1659149754
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I always thought he Caddy Escalade EXT, the Chevy Avalanche LTZ and the Honda ridgeline RTL with those aerodynamic rear decks were the cats meow.

Cadillac-Escalade_EXT-2002-1600-07.jpg


9d3a4ec7732e928342fd02d891f70033.jpg

2014_honda_ridgeline_angularrear.jpg
 
MrPants said:
Since I've returned from my wanderings in South Amer. I only take Uber or God forbid a dirty, falling apart taxi, when I need to go out. It's much more cost effective than buying a car considering the initial cost of buying one then the auto licensing, insurance and cost of gas these days. It's a bit more inconvenient but saves me thousands!
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Our cabs are $7 or $8 a mi. now.
 

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