GM Analyst: "It’s unbelievable that after this huge taxpayer bailout and the bankruptcy that we’re right back to where we were"

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    Jul 06, 2011 2:07 PM GMT
    http://www.bloomberg.com/news/2011-07-05/gm-s-widening-truck-inventories-risk-return-to-bad-habits-of-2008-cars.html

    General Motors Co. (GM) stocked Jim Ellis Chevrolet in Atlanta with plenty of Silverado full-size pickups in early 2011, part of a wager on a strong economic recovery. The strategy is backfiring.

    “We thought that this year would bring back the kind of economic activity that would translate into us selling more trucks,” Mark Frost, the dealership’s general manager, said in a phone interview. “It’s not happening.”
    Supply of Silverado has ballooned to 6 1/2 months worth at the dealership, a figure Frost, 52, calls “a little scary.” The Detroit-based automaker, 33 percent owned by the U.S. after its 2009 bankruptcy, has 280,000 Silverado and GMC Sierra pickups on dealers’ lots around the country. If sales continue at June’s rate, that would be enough to last until November.

    After GM’s truck inventory swelled to 122 days worth of average sales, the company said 100 to 110 will be normal going forward for such a large and complex line of vehicles, compared with 60 to 70 days for most models. Peter Nesvold, a Jefferies & Co. analyst, isn’t convinced. Ford Motor Co. (F), which makes similar trucks, is running at 79 days, and Nesvold says GM averaged 78 days on hand at year end from 2002 to 2010.

    “It’s unbelievable that after this huge taxpayer bailout and the bankruptcy that we’re right back to where we were,” Nesvold, who has a “hold” rating on the stock, said in a telephone interview. “There’s no credibility.” In a research note he asked: “Is GM falling into old, bad habits?”


    Notes one pundit: http://directorblue.blogspot.com/2011/07/obamaconomy-hits-another-pothole-after.html
    You mean that abrogating bankruptcy law, screwing over secured creditors and rewarding Democrats' union supporters with billions in equity, tax breaks and subsidies didn't really fix GM?

    Gee, that was hard to predict.


    Given that GM hasn't really fixed its problems - particularly when it comes to pensions, and cost structure, the bailout probably had the unfortunate effect of only delaying the inevitable.
  • rnch

    Posts: 11524

    Jul 06, 2011 2:13 PM GMT
    i must admit that i still have "Mixed Feelings" about the GM bail out.

    there's still not one vehicle in today's chevy showroom that i would fork over my heard earned money for.


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  • rnch

    Posts: 11524

    Jul 06, 2011 2:17 PM GMT
    southbeach1500 said....
    Which is why liberals shouldn't touch anything that has to do with finance.




    yes, the fiscal conservatives in the last administration did SO WELL!!


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  • Posted by a hidden member.
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    Jul 06, 2011 2:18 PM GMT
    rnch said
    southbeach1500 said....
    Which is why liberals shouldn't touch anything that has to do with finance.




    yes, the fiscal conservatives in the last administration did SO WELL!!


    icon_rolleyes.gif


    To which fiscal conservatives would ask you... what fiscal conservatives in the last administration? icon_wink.gif
  • rnch

    Posts: 11524

    Jul 06, 2011 2:25 PM GMT
    riddler78 said....
    To which fiscal conservatives would ask you... what fiscal conservatives in the last administration? icon_wink.gif




    point taken! there were NO fiscal experts in the last Presidential administration. (dubja)

    anyone recall a top govenment offical in the bush administration repeating over and over that "Deficfits Don't Matter"?


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    Jul 06, 2011 3:57 PM GMT
    southbeach1500 saidWhat's also unbelievable (to the liberals) is that all the "stimulus" and massive expansion of the Federal government over the past two years has actually sabotaged the economic recovery. How could that be??!?


    Incorrect. In fact, the opinion of one analyst is not sufficient to support the supposition that GM is failing. icon_rolleyes.gif
  • rnch

    Posts: 11524

    Jul 06, 2011 3:59 PM GMT
    southbeach1500 saidWhat's also unbelievable (to the liberals) is that all the "stimulus" and massive expansion of the Federal government over the past two years has actually sabotaged the economic recovery. How could that be??!?


    please explain/support/add detail to your "opinion"



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