Stock Picks-Is GM Chairman Losing It?

Don't you just love it? General Motors can't make aout of the sale. That's how you lose money, and you
quality car to save its life, which is what it's trying to do,can't make it up on volume.
and it wants Nissan to give it billions of dollars to showYou also have the issue of your competition's pricing.
respect for a failed company. Over the last couple ofThe other guys are giving their customers perceived
years, you have heard of failed nation states, many ofvalue and real value. The value is so great, that it is
them in Africa. Countries that can't feed themselves,disallowing you a profit in the vehicles that you are
and have just about as much wealth as is necessaryputting on the market. It's that simple.
to put an embassy in NY, so their diplomats can dineBut wait, there's more!!
at the United Nations, and park overnight withToyota, your main rival for world supremacy just
diplomatic plates.came out with a new Lexus LS 460 with built in
Now we have failed corporate states like Generalfeatures that GM isn't even thinking about. It's not even
Motors who can't get out of their own way, andon the drawing boards at GM. THE LEXUS CAR
probably have no justification for remaining in businessPARKS ITSELF. It's got sonar distance finding devices
other than the fact that they've been around forthat link up to its navigation system. This thing can pull
something approaching a century. If you really thinkinto a parallel parking position with the driver basically
about it, other than the employees who would anyonewatching the car park itself.
miss General Motors if they went out of businessMercedes will envy the paint job at twice the price,
tomorrow, maybe even today. The remaining playersand a first ever 8-speed transmission. How does a car
would immediately pick up their market share, and wewith 380 horsepower get 19 miles to the gallon
wouldn't have to watch the slow market attrition that isanyway? With a crash sensing system that prepares
taking that share down anyway.the brakes and airbags for the coming impact, this
There will come a time if they remain in business, thatLexus may give new meaning to the word safety.
only aliens coming to visit our planet will buy GeneralWhat's going on here? For $70,000, Lexus will give you
Motors vehicles. The news recently is ludicrous. Carlosa car that BMW, and Mercedes can't even dream
Ghosn runs Nissan-Renault. This man has done aabout making for the price.
world-class turnaround over the last several years,I have talked with representatives of the Japanese
making billions of dollars for a company that very fewautomobile companies. They think GM is on the ropes,
thought could be turned around.and who can argue. The old giant is pumping out iron
Rick Wagoner is the typical corporate bureaucrat thatthat just doesn't do it anymore. The only employees
spent decades at GM while its market share slid downhappy at the company are hebephrenics on the
the tubes. The two of them have been talking aboutassembly line who are taking too many pain killers.
some sort of consortium at the behest of GM's majorThere's also Chairman Rick Wagoner who appears to
shareholder Kirk Kerkorian, who wants GM turnedbe constipated in every interview he gives, and wants
around tonight, today, yesterday. Wagoner has nowa financial tribute from Nissan to boot.
decided that Nissan should pay GM billions of dollarsThe Future of GM
for GM's perceived greater value.General Motors will continue to exist. If the consumer
What value? Hey dude, you just lost $10 billion lastbought only on the basis of quality, and bang for the
year. You've bought out thirty five thousandbuck, GM would have filed for bankruptcy years ago.
employees that you can't find work for. You're aThe consumer buys for other reasons though, aside
textbook case study in how to lose money by sellingfrom quality. Some have never driven a Japanese car,
inferior products, and you believe you bring greaterand wouldn't consider it. Once you drive Japanese,
value to a partnership with Nissan, than Nissan bringsbuying American cars becomes unthinkable. Some
to you. HELLO, ANYBODY HOME?buyers live in sections of the country where there is
One of the first lessons anybody learns if they arepeer group pressure to buy American, such as the
active in the stock market is, you have to deal withMidwest.
reality, not your perceived reality, but what's reallyPeople on the East coast, and West coast however
taking place. GM has yet to do a full, truthfulhave basically shunned GM's vehicles. The Big 3
self-assessment and figure out where they are. Whatautomaker will never recapture anything in those two
are you doing wrong? You can't be doing things right,markets again. I can't imagine how they turn around
and lose $10 billion in a year. You've got sales all right,corporate morale. With seventeen layers of
but your customers are so disenchanted with yourmanagement compared to Toyota's five, I don't know
product that they are not allowing you to price yourhow anyone is proud to say, "I work for GM".
product at a number that allows you to take a profit