I haven't seen this posted anywhere so if this is a repeat, please delete it. I am taking quotes from the article and condensing them to simply drive
the point home without you having to read the entire article.
President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail
GM out again.
First, I'll lay out some facts:
* The US Government holds about 26% of GM stock, 500,000,000 shares.
* It would need to get about $53.00/share for these to break even on the bailout. It close at $21.31 today
* When GM reorganized and went public, after the bailout, it opened at $33/share
Since the bailout, the Dow has risen about 20%, so based on these numbers, relative to the Dow, GM has lost around 46% of it's value since the bail
out. Obama-nomics. Remember, he's proud of this bail-out.
Other pertinent facts:
1) "D" class automobiles are have the largest market share, comprising about 21% of the US market so far this year. These are mid-sized family cars
which include the Impala, Nissan Altima, Toyota Camry, etc. For many auto makers, this segment is their "bread and butter". (The D-Segment is the
highest volume single vehicle class in the U.S.)
2) Typically, a car company takes about 5 years to completely re-design an automobile. This is where things get interesting
. Common sense tells
us, if you don't get it right, you are pretty much screwed for the next 5 years, (my own analysis). You are stuck with a sub-par product for your #1
market. Not good.
3) GM is in the process of introducing a totally redesigned 2013 Chevy Impala.
Automobile technology is progressing so fast that the best vehicle in a given segment is usually just the newest design in that segment.
Accordingly, if a car company comes out with a new, completely redesigned vehicle, it had better be superior to the older models being offered by its
competitors. If it is not, the company will spend the next five years (the usual time between major redesigns in this segment) losing market share
and/or offering costly “incentives” to “move the metal”.
In short, in the March 2012 issue of Car and Driver
, the Impala was beat by considerable margins by the Volkswagen Passat and the Honda Accord
(a 5 year-old design!).
Furthermore, even though it has a hybrid powertrain, it's even in gas mileage with the other contenders and actually slightly worse than the 2013
They shortened the wheelbase from the previous model, (evidently a big no-no if you want to maintain that "big-car" feel and sparse leg room in the
back seat, where, as they put it in the article, "just like baseball, is a game of inches"). In addition, the hybrid design took away from precious
In short, GM completely blew it. They will now be forced to push these things out the door for the next 5 years, offering loss-leading incentives and
"sub prime" auto loans just to dump them.
In my opinion, the whole hybrid idea probably came from the Obama administration. They are so bent on their clean initiative that it completely
overshadowed any business sense. I can't prove that they had a say in it, but knowing how militant they are and how determined they are to shove their
"green" garbage down everybody's throat, it's difficult to believe that there weren't some subtle "hints" dropped down the line. Remember, 26% is a
huge share, then throw in the monstrosity that is Obama's ego as well as the rest of this dictatorial administration and it just makes sense.
A few other noteworthy quotes:
Akerson (GM's CEO) got his first job in the automobile industry when he was named CEO of GM in late 2010. Recently, he has been hiring and firing
top GM executives at an alarming pace, and he is understood to be working on a major reorganization of the company. Akerson recently gave a televised
speech to GM employees on the need for “integrity”.
Link to Source
Uh-oh. While Dan Akerson is busy rearranging the deck chairs on GM’s Titanic, Martin Winterkorn is leading VW to world domination via technical
edit on 23-8-2012
by axslinger because: Replaced "Malibu" with "Impala"
edit on 23-8-2012 by axslinger because: (no reason given)