  Bvos Member Username: Bvos Post Number: 1317 Registered: 10-2003 Posted From: 66.238.170.34 |
Hot off the press: http://freep.com/apps/pbcs.dll /article?AID=/20060323/NEWS99/ 60323002 | ||
Focusonthed Member Username: Focusonthed Post Number: 47 Registered: 02-2006 Posted From: 209.220.229.254 |
Not exactly...that only involved the commercial mortgage unit. At the end of the article: "GM continues to look for a buyer for 51% of its finance arm, General Motors Acceptance Corp." | ||
1953 Member Username: 1953 Post Number: 739 Registered: 12-2004 Posted From: 209.104.146.146 |
Why would you sell the most profitable part of your company!!!?>?!?!?!?!?! | ||
Ndavies Member Username: Ndavies Post Number: 1687 Registered: 10-2003 Posted From: 129.9.163.233 |
You need the money from the sale of the side businesses to fix your core business. Without the core business both entities would be out of business. | ||
River_rat Member Username: River_rat Post Number: 62 Registered: 02-2006 Posted From: 68.166.44.44 |
Can the core business be fixed? By selling off the viable parts of the organization, GM is cannibalizing itself for short term survival. Very sad situation. Both management and labor need to make very substantial changes in the way they look at the future of THEIR existance. They have not shown the ability in the past, and now, with the company in the ICU, it is hard to see that they can do it in the future. | ||
Upinottawa Member Username: Upinottawa Post Number: 252 Registered: 09-2005 Posted From: 198.103.184.76 |
Maybe GM will sell its core business to Toyota? | ||
Bvos Member Username: Bvos Post Number: 1328 Registered: 10-2003 Posted From: 66.238.170.51 |
Nothing like a good fire sale! | ||
Ndavies Member Username: Ndavies Post Number: 1688 Registered: 10-2003 Posted From: 129.9.163.233 |
If the core business can't be fixed you're screwed anyway. By selling off the side business it at least has a chance to survive without being dragged down by the core business. GM has to decide if it's a finance company or an Auto assembler. They have already decided they don't want to be an end to end manufacturer of cars. They decided that when they spun off Delphi. They decided they didn't want to be in the aerospace industry when they spun off the profitable Hughes division. I can see them spinning of Onstar when it stops being a reason to buy GM cars. Companies lose their way when they diversify too much. The first thing a company in trouble does is shed the businesses that are not at the core of what they do. Building cars is GM's core business. Loaning money for commercial property, building electronic components and rockets isn't. The in house car lending helps their business so they only want to sell enough of that side of GMAC to get the cash and upgrade GMAC's ability to borrow money. The sale of 51% of the car side of GMAC would separate it from GM's bond rating, allowing it to borrow money at lower costs. | ||
River_rat Member Username: River_rat Post Number: 64 Registered: 02-2006 Posted From: 68.166.44.44 |
Ndavies, what does GM want to be? An end assembler, a design shop, who knows? | ||
56packman Member Username: 56packman Post Number: 137 Registered: 12-2005 Posted From: 129.9.163.234 |
Right now, the American auto industry would love to go over to a "fabless" culture, as it is known in the computer business. The restructured company consists of administration and finance, marketing (to own the brand identity) and legal, to protect same and fend off law suits. Design, Engineering, manufacturing is all farmed out to first tier suppliers. Scares me. | ||
Livernoisyard Member Username: Livernoisyard Post Number: 339 Registered: 10-2004 Posted From: 69.242.223.42 |
Ford and other firms has been offshoring much of their IT and financial accounting (especially AP/AR) functions to places like India for years already. | ||
Jjaba Member Username: Jjaba Post Number: 3432 Registered: 11-2003 Posted From: 192.220.139.10 |
jjaba has been driving past the GM Bldg. since the 1940s. Its core business has always been banking. The cars are just incidental to the money made on 5 yr. financing of depreciating vehicles and now the mortgage business. When GM sells the banks, it is fucking adios down the road. jjaba, Westside owner of GM Detroit iron. | ||
Livernoisyard Member Username: Livernoisyard Post Number: 343 Registered: 10-2004 Posted From: 69.242.223.42 |
Back in July when GM common sold for $31, a security analyst reporting in Detroit stated that $25 of that was due to GMAC alone, which is about what is left of its few remaining non-core businesses. This implies that GM was indeed a bank - with an expensive white elephant lurking in its vault - mainly, its vehicle business. Today, GM closed at $22.00. If GMAC is still worth $25 per share of GM stock, then GM's core business is dragging down its market value and is essentially worthless, according to the financial community, as of late. | ||
Matt_the_deuce Member Username: Matt_the_deuce Post Number: 591 Registered: 10-2003 Posted From: 69.14.248.252 |
Shit, I say sell the car side and just become a bank... | ||
Jjaba Member Username: Jjaba Post Number: 3436 Registered: 11-2003 Posted From: 67.160.138.107 |
GMAC financing Toyotas and Hondas, Japanese trucks and earth movers, plus some Korean and German schitt, and you got a VERY successful bank. GM, go for it. jjaba on the Dexter bus, on W. Grand Blvd. | ||
Jerome81 Member Username: Jerome81 Post Number: 947 Registered: 11-2003 Posted From: 64.142.86.133 |
At the rate they lost money in 2005, that 8.8 billion won't even cover them for a full year. Wow. Makes sense to sell. They can still likely use it to finance new cars, but separating the entities means that GMAC can borrow money at a lower interest rate than they can if they are tied to GM. I want to be hopeful about the whole thing. But I am VERY reluctant to believe that GM will get the ship righted before they burn through all the cash. They've sold most of the big stuff to get more cash. What's left? They sold Suzuki, Subaru, GMAC, Hughes, GM Locomotive. There's just not much left. | ||
Smogboy Member Username: Smogboy Post Number: 2077 Registered: 11-2004 Posted From: 69.47.100.44 |
Scary thought thinking about GM going through so many of their assets like this just to secure their core business. It's not an ideal scenario I'm sure but if it has to be in order to maintain viability, then it's gotta be. If I see them hawking off floors of their HQ in the RenCen for condos I know we'll be in deep doo doo. | ||
Jjaba Member Username: Jjaba Post Number: 3439 Registered: 11-2003 Posted From: 67.160.138.107 |
Livernoisyard tells it like it tis. GM ain't worth schitt! jjaba, current owner of two GM cars. | ||
Jjaba Member Username: Jjaba Post Number: 3440 Registered: 11-2003 Posted From: 67.160.138.107 |
Top Ten Reasons to Deal with GM. 10 GMAC paper pays great junk bond dividends. 9. You can pronounce Pontiac or GMC. 8. For your love of Willy Durant. 7. To Honor the 1937 Flint sit-down strikers. 6. Cash in some points on GM credit card. 5. Ride with DEtroit pride. 4. Chev Equinox has a Chinese (Wal-Mart) engine. 3. Becaue the Chinese love their Buicks. 2. It ain't your father's Oldsmobile. 1. Because a Corvette gives you a hard-on. jjaba, Proudly buys American. | ||
Jiminnm Member Username: Jiminnm Post Number: 362 Registered: 02-2005 Posted From: 68.35.85.184 |
Livyard and Matt, I read a related article a couple of months ago (source escapes me). The writer suggested that GM has done such a good job (i.e., profitable) of lending money and such a bad job (i.e., not profitable) making and selling cars, that it would be in the long term interest of GM shareholders if GM would totally outsource the manufacture of cars and focus their efforts on lending and sales. | ||
Mumbly Member Username: Mumbly Post Number: 23 Registered: 10-2005 Posted From: 68.250.41.64 |
I'm puzzled as to why this forum has been relatively quiet about all of the recent GM news (UAW buyout offers, Black Tuesday, etc.) The Detroit News' message board has been buzzing about GM for several days now: http://info.detnews.com/autost alk/lettersindex.cfm | ||
Hysteria Member Username: Hysteria Post Number: 25 Registered: 02-2006 Posted From: 205.188.116.137 |
God Bless jjaba. |
