Up 16% today after Tracinda Corp offered $31 a share. After yesterday’s announcement that the Gov. was investigating brakes on 1.2 million of their vehicles I figured the stock would keep dipping, then Tracinda Corp goes ahead and wants to double their investment in them, what’s up?
Re: General Motors
American car makers have to do something drastic to reverse their sagging fortunes. Chrysler did well. GM and Ford are still lagging, and solely relying on mid-America's penchant for their trucks and fleet sales to keep them afloat. Not good. Toyota is constantly gaining ground.
Re: General Motors
The new H3 will help out GM and I like the Saturn Sky (2006) and Pontiac Solstice but they really need to keep the wheel rolling, my question is what made Tracinda Corp act now? Assuming GM pulls through this latest crisis it'll be seen as a great move when the stock goes back up into the 60's.
Re: General Motors
It is just Kerkorian preserving their equity value. recalls effect most auto manuf. Short term issue, I foresee GM acquiring an asian brand in the next two years. You heard it here first.
Re: General Motors
Don't they already have stake in some Korean company? Daewoo or something?
Re: General Motors
I don't recall what they got but it was mostly a couple of manuf plants for prouction of the consumer cars. They spun off a lot of the other assets... They will go after one of the other japanese car makers.
Re: General Motors
My feeling is that they can't afford Toyota or Honda. Mazda is already owned by Ford, kinda. So Nissan is their best bet, for a joint-stake with Renault. Unless they want to go for really fringe companies.
Re: General Motors
what about Subaru...sales are pretty sharp..what is the holding for that company.
Re: General Motors
Technically, Subaru is owned by Fuji Heavy Industries, where GM has a significant holding. Previously Fuji was part-owned by Nissan which is controlled by Renault.
http://www.nissan-global.com/GCC/Japan/NEWS/20000324_1e.html
Re: General Motors
this siht is more confusing than watching spike lee and reggie miller hug in the garden.
Re: General Motors
True.. As Fraudia calls it... all kinds of adla-badla, or as you'd call it rampant incest.
Re: General Motors
Farudiya, I am not sure who should kick his ass, me or you? I think he cleverly figured out to insult us both. 
Re: General Motors
It's not hard :D
Anyway, if Nissan sales keep on picking up, like they are doing right now... they and Toyota will grab a huge portion of truck sales too. That will be the final nail for Detroit.
Re: General Motors
^ why do I feel like you are giddy when you say that? As an American you should figure out ways to save the industries and jobs, no?
Re: General Motors
The quality (or lack thereof) from Detroit is frustrating. Otherwise, the cars are big and cheap (comparing to their Japanese cousins).
Re: General Motors
GM has had recent technological partnerships with Subaru and Suzuki. I figure if they buy another company it will be one of those two.
The alternative will be snapping up a Chinese brand, but I think the leading ones are state-owned and I don't see Beijing letting go too easily.
Proton in Malaysia is small enough to buy comfortably, but I'd be surprised if they go for such an insignificant player.
Re: General Motors
Buying in china is futile unless it for the local market. No one makes money in china unless you are carlyle or GAP. There are no exit strategies. even lenovo had to partner with an american PE firm to get credibility. China, maybe in 5-10 years...Subrau is my pick.
Re: General Motors
GM bought Daewoo (S.Korean company I think) a few years ago which has disappeared in the U.S. and is an Asian brand. GM had the Snafu earlier this year (or last) with Fiat, they ended up paying $2 billion not to buy them, hope it works out better next time around.
Re: General Motors
As long as labor unions have the backing of bleeding heart liberals GM and other american auto manufatcurers will continue to struggle.
Re: General Motors
Rather narrow and dumb minded assessment of the situation Kaleem.