GM giving America what it doesn't want

[JustRalph]

http://www.reuters.com/article/2012/09/10/us-generalmotors-autos-volt-idUSBRE88904J20120910

They are only losing 49k a vehicle

But the UAW is whole, and that's what matters

[ElKabong]

That's a lot of $$ to buy the Michigan electoral votes

[witchdoctor]

They will make it up in volume. :D

[maddog42]

Maybe you guys didn't read the entire article.



"GM's investment in the Volt has so far been a fraction of the $5 billion that Nissan said it is spending to develop and tool global production of the Leaf and its associated technologies and the reported $10 billion or more that Toyota has plowed into the Prius and various derivatives over the past decade."

The jury is still out on the Volt. My opinion is that it will not be as good a car
as my daughter's Prius. I love that car. But still very early. You can bet per/unit cost on the Leaf will also be very high at first. It took Toyota quite a
while to make money on the Prius and they had the market all to themselves.

[JustRalph]

I could care less what Toyota and Nissan spend.

They are using their own money

[Tom]

Toyota and Nissan are perfect examples of why governments have no business interfering with business - they suck at it!

GM, a proven loser, could not make it on their own and cannot make it using our money. Let that dog die and start feeding a better one. Government + Union = certain failure and loss of tax dollars. Blatantly obviousl

[ArlJim78]

the same can be said for any government incursion into the market, not only GM. the banks that were saved, the mortgage mess that government created, the big breaks and loopholes given to the large conglomerates, subsidies of all kinds, sweetheart deals for cronies and donors. these actions cause market distortions, it rewards failure and encourages bad behavior, it stifles competition.

I said at the time, GM would be a stronger company now had it emerged from a traditional bankruptcy proceeding, without the heavy handedness and special waivers that were given to the UAW. government task forces do not know how to run and restructure anything like a car company.

[FantasticDan]

GM's response to the Reuters article:

https://wot.motortrend.com/gm-responds-to-negative-reuters-report-on-chevy-volt-costs-259769.html

[JustRalph]

I think anybody who read the original piece realizes that the more they sell, the less they lose. The original piece explained that well enough. It just called into doubt that they would ever get to profitability.

I tend to think they won't ever recoup their investment

[Tom]

You mean OUR investment?

[Actor]

You mean OUR investment?Good question.

The Volt was introduced as a concept car in 2007 so the project must have started earlier than that. The bail out (our investment) was in 2008-09 and was to save GM, not to fund the Volt project per se. Possibly the Volt project was the source of GM's troubles, but that seems unlikely since the other American auto companies were also having problems at the time. "Our investment" was in GM as a whole, not just the Volt project.

JustRalph thinks the Volt will never turn a profit but GM management obviously disagrees. It's their call. Like other shareholders "we" have to trust management and hope for the best. Then again GM management may well know at this point that the Volt project is a loser but, corporate politics being what it is, it's not in their best interests to cut and run at this time.

[Valuist]

Good question.

JustRalph thinks the Volt will never turn a profit but GM management obviously disagrees. It's their call. Like other shareholders "we" have to trust management and hope for the best. Then again GM management may well know at this point that the Volt project is a loser but, corporate politics being what it is, it's not in their best interests to cut and run at this time.

How could anyone have faith in what GM's management thinks? They are desperate, and know the public is upset. So who would I be more likely to believe, Ralph or GM management? I think you know the answer to that.

[DJofSD]

JustRalph thinks the Volt will never turn a profit but GM management obviously disagrees.

GM management had better be on board and supporting the effort. Otherwise, have them look for a job elsewhere.


Like other shareholders "we" have to trust management and hope for the best.
BS. What kind of investment strategy is that, hope for the best?

As an investor, how do I sell my shares? I want to cut my losses.

[dartman51]

I think it will interesting to see how fast they drop the Volt, when Obama is no longer in office, and they don't have to appease the "master" . It makes no sense, economically or otherwise, to build a product that you can't recover your cost. After all, if you were building houses, you wouldn't put $300k into building a house if you knew all you could sell it for was $250k. But then, maybe it makes perfect since to some liberals. :ThmbUp:

[Actor]

GM management had better be on board and supporting the effort. Otherwise, have them look for a job elsewhere.They're on board all right. That's why they won't admit it's a loser, if it indeed is a loser.

BS. What kind of investment strategy is that, hope for the best?It's not an investment strategy. It's a political strategy.

As an investor, how do I sell my shares? I want to cut my losses.Too late. We are in for the long haul. Even if Romney wins he won't be able to undo this deal.

[Actor]

Wasn't it GM that built the electric car in the movie Who Killed the Electric Car? The owners seems to like it. Did that car become the Volt?

[highnote]

My problem with the Volt is that it is overpriced.

If I buy a new $20,000 car, I can buy a lot of gas with the $20,000 I have left over by NOT buying a new Volt.

[Tom]

Stop the Presses!
Just when we write them off, GM pulls a rabbit out of its hat.
Introducing........the DOLT!


http://www.arlingtonvoice.com/content/government-motors-dolt-unveiled


Following reports of the Volt catching fire, plans for the GM Blaze were cancelled.

[Actor]

My problem with the Volt is that it is overpriced.

If I buy a new $20,000 car, I can buy a lot of gas with the $20,000 I have left over by NOT buying a new Volt.Enough to go about 125,000 miles at $5 / gallon. Plus there are reports that the Nissan Leaf will need a new battery at about 50,000 miles at a cost of $15,000-$20,000. If the Leaf battery wears out that quickly the Volt probably does too.

I got 180,000 miles out of my $20,000 car. An electric car that costs $40,000 plus $30,000 for two new batteries during its lifetime is a difference of $50,000. That buys one hell of a lot of gas.

Plus the electricity to charge the car is not free. I think comparing miles/gal to miles/watt-hr the "fuel" cost of an electric car is comparable to a gasoline car that gets 200 miles/gal.

I think the electric car is a great idea, but an idea whose time has not yet come for the average consumer.

[Saratoga_Mike]

Toyota and Nissan are perfect examples of why governments have no business interfering with business - they suck at it!

GM, a proven loser, could not make it on their own and cannot make it using our money. Let that dog die and start feeding a better one. Government + Union = certain failure and loss of tax dollars. Blatantly obviousl

I didn't like how GM was handled, but to imply that they aren't successful as a whole now is just false. If you weren't saying that fine, I'd still like to provide some facts.

GM - 2012 projected operating income: $6.3 billion; 2012 projected free cash flow $3.3 billion.

[Tom]

Proven loser.......we got snookered bailing out that pig.

http://www.forbes.com/sites/louiswoodhill/2012/08/15/general-motors-is-headed-for-bankruptcy-again/

The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

http://www.dailyfinance.com/2012/08/15/taxpayers-gm-investment-down-25-billion/


In a new report, the Treasury Department says it expects to lose more than $25 billion on its bailout of the auto industry during the financial crisis.

[JustRalph]

http://www.foxnews.com/us/2012/10/08/lg-plant-that-got-150m-to-make-volt-batteries-in-michigan-puts-workers-on/

[Tom]

The GM fuel cell plant in Honeyoe is closing.
Moving everything to Pontiac.
220 families face the curse of GM.
Lose your job or move to Detroit. :eek: