User 169775

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  • Is There Any Hope for the Big Three Auto Makers?
    I think the 1980s Federal bailout of Chrysler created a bit of moral hazard here. It's a bad thing to have GM and F think that Uncle Sam is always going to be there to clean up their mess no matter how badly they misbehave.

    Considering how the Fed handled the Bear Stearns crisis (arranged for JPMorgan Chase to buy them out), I think more likely Uncle Sam would probably try to arrange for some private equity firm to take over F or GM if they should fail, though I have a feeling a lot of private equity firms have looked at Cerberus's experience with Chrysler and would probably politely refuse. :-P

    F does have a takeover candidate lined up though-- Kirk Kerkorian's Tracinda Corp. Uncle Sam would probably guarantee a loan for Kirk to take on the unsavory job of salvaging Ford's collapse if that does come to pass.

    Don't know about GM..
    Jul 04 01:33 am |Rating: 0 0 |Link to Comment |View article
  • Valuing GM: $28 One Day, $7 the Next?
    ValueBuyGM:

    I have to disagree. The Caddy CTS, Malibu and Corvette might be nice cars, but GM is NOT going to be able to survive with a lineup like that, not in this day and age of $4 / gallon gasoline (heading up to $5 / gallon pretty soon).

    The CTS and Corvette gets 20mpg combined highway/city. The Malibu gets 25mpg combined.

    Meanwhile, Toyota has a lineup of cars that can get 30mpg combined or better (Corolla, Yaris, low-end Camry, Prius).

    What GM needs to survive is put out a full lineup of cars that can get 30+ mpg COMBINED (not just highway), and we aren't seeing that. Hate to say it, but a Chapter 11 for GM seems more likely as each day passes.
    Jul 04 01:06 am |Rating: 0 0 |Link to Comment |View article
  • Is General Motors Closer to a Default?
    The last time I checked, Japan has a democratically-elected government with a free-market economy that uses a currency NOT PEGGED TO THE DOLLAR, and allows the U.S. to base its forces there.

    Can you say the same for China?

    World War II was 50 years ago, we defeated a Japan that was run by a dictator (Tojo) and converted into an Ally.

    You don't seem to like studying history. I guess GM has the same kind of ignorant people as you in its management, because they sure are repeating history (i.e. 70's oil crisis).
    Jul 02 21:21 pm |Rating: 0 0 |Link to Comment |View article
  • Some Consequences if Oil Prices Stay High
    @ Barry's Pharmacist:

    I think the chief objection to using a rocket to shoot nuclear waste into space is that rockets are only 98% reliable. Which means for every 50 launches, there is going to be 1 failure where the rocket blows up in the atmosphere during its booster stage.

    A rocket filled with nuclear waste blowing up during its booster stage would not be good for the folks living in Florida. :-)
    Jul 02 15:07 pm |Rating: 0 0 |Link to Comment |View article
  • Is General Motors Closer to a Default?
    FYI, poisoned dog food or lead painted toys aren't made in Japan.. They are made in China. Unlike China, Japan is an ally of the U.S. in politics, ideology and economics. I'd rather have my money go to Japan than China.

    If you hink people care about how much your Ford pickup truck can pull, you have been missing the whole point of this discussion. These days people are more concerned about getting as much mileage out of a gallon of super-expensive fuel than how much someone is compensating for a smaller reproductive anatomy with a bigger car. :-P
    Jul 02 14:59 pm |Rating: 0 0 |Link to Comment |View article
  • Is There Any Hope for the Big Three Auto Makers?
    Up until last week, I believed the Chevy Volt will be GM's savior... No longer.

    Some Chevy spokesman had said the Volt is going to have an MSRP of $40,000. People are already whining about the price premium of current hybrids like the Toyota Prius, and the Prius costs only $21,500 MSRP. If those prices are true, the next generation Prius is going to absolutely KILL the Volt in sales.

    Things look grim for GM.
    Jul 02 13:12 pm |Rating: 0 0 |Link to Comment |View article
  • Is There Any Hope for the Big Three Auto Makers?
    I wonder if Kirk Kerkorian is still harboring dreams of gaining control of Ford, considering that he bought his few million shares at $7 only to watch it fall to $4. Well, at least Ford has someone who may be willing to pump more money into the company.. Not sure if GM or Chrysler can say the same.
    Jul 02 04:20 am |Rating: 0 0 |Link to Comment |View article
  • Is General Motors Closer to a Default?
    seyjazz wrote: "Now they are making better cars than their competitors and are really giving people what they want, but it seems that all you cry babies who buy foreign don't realize that, so you buy foreign."

    In this day and age of $4 per gallon gas, Consumers are demanding cars that can do 40mpg combined or better. GM can only give you cars with a combined 25mpg. How is that "giving the people what they really want?"

    Your attempt to blame the consumer for not buying cars that use more gas is rather laughable, I'm afraid.
    Jul 01 22:41 pm |Rating: 0 0 |Link to Comment |View article
  • Is General Motors Closer to a Default?
    So you want us to subsidize companies that make non-competitive products in the name of "saving jobs" which does absolutely nothing to solve the root problem? Shame on YOU.
    Jul 01 14:54 pm |Rating: 0 0 |Link to Comment |View article
  • Is General Motors Closer to a Default?
    Mr. Jummy, the point is NOT that Camrys, Accords, Sequoias, and Tundras get 40mpg.. They don't. BUT YOU HAVE TO BE BETTER THAN THEM IF YOU WANT TO COMPETE.

    You can't be "slightly worse" than them. You can't be "just as good" as them. Competition means you have to be BETTER than them.

    So until GM abandons this "25mpg is good" line of thinking and start finding ways to build 40mpg cars that can beat the pants of Toyotas, it will keep circling the drains.
    Jul 01 14:04 pm |Rating: 0 0 |Link to Comment |View article
  • Is General Motors Closer to a Default?
    Those who defend GM like to point out that GM cars are good-quality and that they get "good" fuel mileage, cars like the Saturn Aura which gets 25 MPG combined (and this is the 4-banger version) and the various awards.

    Problem is, in this day and age of $4/gal gasoline, 25mpg isn't good enough. Unless you got cars that can get 40mpg combined (not just highway), you are not going to be competitive against the Japanese under current market conditions.

    The consumers have voted with their wallets-- Most of them want fuel economy, and no amount of JD Power awards or superior service will convince a consumer to buy a 25mpg car if he needs something that gets 40mpg.
    Jul 01 03:52 am |Rating: 0 0 |Link to Comment |View article
  • The Future of Ford’s Mid Sized Car Business
    Remember that the last old-line Taurus (not the rebadged Five Hundredths) is a curvy soap-bar-shaped car that Mondeo resembles. Anybody can make a soap-bar shaped car.

    Styling is subjective. I hate driving soap bars and frankly I'm not impressed by the Mondeo.
    Jun 30 04:11 am |Rating: 0 0 |Link to Comment |View article
  • Is General Motors Closer to a Default?
    Those who do not study history are doomed to repeat it..

    Looks like F and GM had not learned from the Oil Crisis in the 1970s.. When their lack of fuel-efficient cars gave Toyota and Honda the opening they needed to get into the U.S. market and thrive.

    History repeats itself again today, with a vengeance. This time, not only is Toyota and Honda thriving, F and GM are on the verge of once-unthinkable disaster (bankruptcy or worse).
    Jun 30 04:07 am |Rating: 0 0 |Link to Comment |View article
  • Is the Chevy Cobalt as Good as a Hybrid?
    Those who think hybrid batteries need to be replaced every few years obviously don't know how to read.

    EVERY SINGLE NEW HYBRID BEING SOLD IN THE US RIGHT NOW CARRIES AN 8-YEAR / 100,000-MILE WARRANTY ON THE BATTERY. IT FAILS BEFORE THEN, THE CAR MAKER HAS TO REPLACE IT FOR YOU FREE.
    Jun 26 01:18 am |Rating: 0 0 |Link to Comment |View article
  • Will Toyota Lose Its Edge?
    Gotta ask:

    The atkinson-cycle engine in the Prius is different from the Otto-cycle engines in a regular car. It does NOT have a timing belt because the valves work differently. The engine does NOT have a starter either because the normal starter/solenoid system because it relies on the Power Split Device to crank the gasoline engine to speed on-the-fly.

    Also the Prius does NOT have an alternator. The Power Split Device switches the traction motors between electrical generation and torque generation depending on need.

    The Toyota Hybrids are mechanically LESS complex than a normal car, including your mother's HyCam. It's the electronics that are more complicated, not the mechanicals.

    Like I said, no timing belt, no alternators, no starters, and the transmission has just a single gearset. It's LESS components to maintain. You might be impressed about your mother's HyCam, but apparently you don't know much about it.
    Apr 24 11:20 am |Rating: 0 0 |Link to Comment |View article

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