Posted on 06/26/2008 5:55:45 AM PDT by jalisco555
NEW YORK (CNNMoney.com) -- Why is General Motors still in the Dow?
GM (GM, Fortune 500) may still be the biggest of the Big Three. But it's getting more and more difficult to justify keeping GM in the Dow Jones Industrial Average, an exclusive list of what's supposed to be the 30 leaders in the U.S. markets and economy.
GM confirmed on Monday that it is looking into selling its Hummer brand of monstrously-sized vehicles. And in a major sign of desperation, it also announced that it would offer six-year, zero-percent loans for 2008 models until the end of June in an attempt to clear out inventory.
The stock traded close to a 33-year low on Monday, and the company now has a market value of about $7.5 billion, the lowest in the Dow. The next lowest is Alcoa...and it's still valued at $30.3 billion, more than four times as much.
Heck, even Ford has a bigger market value, at $11.9 billion.
(Excerpt) Read more at money.cnn.com ...
The new Malibu is nice, as is the new CTS but given GM's track record I'd need to see at least three years of reliability data before considering either one. Does GM have three more years?
an opinion in a "news" story? I'm shocked!
The article is an editorial.
Just don’t kick ‘em while they’re down.
Great call!!!!
“The new Malibu is nice, as is the new CTS but given GM’s track record I’d need to see at least three years of reliability data before considering either one. Does GM have three more years?”
Yes I like the new CTS as well, but you’re right. This company is on death watch for the next few years.
You know, the stupid thing is GM’s Opel division puts out some very nice cars over in Europe. I think it’s a smart move to have Saturn basically be their rebranded Opels.
Maybe, but creating Saturn was one of GM's monumental mistakes. The billions they've poured into Saturn should have been spent revitalizing the core brands. Create Saturn and kill Olds? WTF???
I bought a ‘85 Olds, a ‘93 Saturn and a ‘04 Malibu. Also had a Ford Tauras about ‘00. All new. Not one of em reached 60,000 miles without requiring significant and costly (over $1,500) repairs. Bought an ‘06 Camry. Just turned 100,000 miles. Hasn’t needed anything but gas, oil, tires and breaks. I don’t see my mechanic much anymore.
“Create Saturn and kill Olds? WTF???”
Yes, agreed...one of the most classic blunders at GM.
I just don't buy their vehicles anymore.
And to be fair, Mercedes - which used to be my favorite vehicle - has gone down the crap tube also.
I almost can't believe it but I'm flipping the coin right now between a new Miata and a Honda S2000.
One of many. It's a long list.
I need the reliability, longevity, maintainability, safety, utility, comfort and looks in a vehicle so I buy GM. I see so many little ugly riceburners broken down on the side of the Interstates as I travel, I don’t see the facination with those things.
That’s fine if it works for you. My one foray with buying domestically, a Dodge Grand Caravan purchased in 1995 during my soccer dad phase, was a nightmare.
My Dad said that the Impala "Wished it was a Cadillac". I thought that summed up the car very well. A cheap car, just whitewashed to look more impressive.
I bought an new Olds diesel, the year eludes me now, and it ran for 27 miles before crud screwed up the injection pump. After a rebuild, it ran for about 35K miles and required another repair to the pump. When it ran, it was a nice car. I subsequently bought a Honda Civic which I put 359K miles on. It also got 40+ mpg so it paid for itself in fuel savings.
Last month the Civic was the best selling vehicle in America. GM has nothing that can compete with it.
>>Create Saturn and kill Olds? WTF???
>Yes, agreed...one of the most classic blunders at GM.
A classic example of a lack of a steady hand at the wheel. Saturn was created to battle the imports. The first Saturns had no corporate twins in the US. They were different, and had a Japanese car feel to them. Saturn had a cult like following, and was making inroads with buyers who would buy foreign. But GM decided sales at Saturn weren’t robust enough, (no patience from management), and that Saturn was too much competition for Chevrolet and Pontiac, so they mainstreamed Saturn, (loss of vision and direction). Now Saturn offers corporate twins to Chevrolet and Pontiac offerings.
They should have either kept Saturn on the original track, or better yet, not start Saturn and still kill Oldsmobile. GM really only needs 3 brands, Cadillac, Pontiac, and Chevrolet. Ford is kicking thier butts with 2 brands. My wife just bought a new Escape. Great vehicle. I know it’s a rebranded Mazada, but that’s a good thing. It’s the first new car we’ve owned that didn’t have to go back early for little tweaks and fixes.
Just look at their warranties. The Detroit Three, only give three (3) year or 36,000 mi or five (5) year or 60,000 mi for their basic warranty. They don't believe in their own product to last to 10 yrs or 100,000 miles. And I wonder, does Ford worry about honoring a free tune-up at 100,000 miles, or do they figure it will not cost them much, because the original buyers will have sold them off, and the warranty doesn't travel to the second owner or beyond.
I'm a proud owner of a new KIA RIO5, with a 10 yr/100,000 MILE Warranty since Monday, getting over 35 mpg on the highway.
“GM cant just build an equal car to win them back, they must build a car that is clearly better and theyve yet to show they can match things like the Accord.”
Well, the new Malibu, which plays in roughly the same segment (or did, although the Accord has now moved up to “large car” status), has gotten great reviews and won a lot of awards. It certainly looks the part of a handsome, but bland Japanese-style transportation module. I’m still skeptical, though, because by most accounts the previous generation Malibu was a pretty crappy effort. Will that nice-looking interior hold up over 5 or 10 years? Will it turn out to have some horrendous drivetrain problem which GM and its dealers will refuse to deal with properly?
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