GM

I dunno. I'm trying to decide if I want to snatch up some shares of either GM or Ford while they're cheap. It's a gamble but might pay off nicely in time.
 
Quote:
I dunno. I'm trying to decide if I want to snatch up some shares of either GM or Ford while they're cheap. It's a gamble but might pay off nicely in time.



Might not be such a bad idea:

GM, Chrysler in merger talks: source

DETROIT/NEW YORK (Reuters) - General Motors has had talks with smaller rival Chrysler LLC about a merger that would combine the No. 1 and No. 3 American automakers at a time when both are struggling to cut costs and shore up cash, according to a source briefed on the matter.

Separately, Ford Motor Co, plans to sell its shares from its controlling stake in Japan's Mazda Motor Co, a second source said.

Finally, Barron's reported that GM was preparing to approach the U.S. Federal Reserve about borrowing money from the central bank's discount window because of the logjam in credit markets that has shut it out of other kinds of borrowing.

The moves come as all three Detroit-based automakers are struggling with a plunge in U.S. sales to 15-year lows and facing tough questions from investors and creditors about whether they have the cash to ride out a deepening downturn.

Representatives of Cerberus Capital Management, the private equity firm that owns an 80.1-percent stake in Chrysler, were not immediately available for comment.

Chrysler and GM declined comment. Ford representatives could also not be immediately reached.

Cerberus is also in exploratory talks with other parties, including Renault-Nissan, to sell Chrysler, the source said.

But any deal would hinge on the completion of the sale of Daimler AG's remaining 19.9-percent stake in Chrysler to Cerberus, the source said. Cerberus last month said it had approached Daimler to buy that remaining stake.

Chrysler's private owners and GM have had "very early" and "very exploratory" talks about a merger, the source said.

The talks between GM and Cerberus, first reported by the New York Times and the Wall Street Journal, began more than a month ago and are not certain to produce a deal.

The Journal said that Cerberus had proposed a swap of assets with GM that would give the private equity firm full ownership of finance company GMAC.

In exchange, GM would get the loss-making auto operations of Chrysler, the newspaper said.

Cerberus currently owns 51 percent of GMAC, GM's former captive finance company which has been hobbled by its exposure to the U.S. mortgage market. GM owns the remainder of GMAC.

LONG PROCESS

The reported talks between the two sides would revive discussions between Chrysler and GM about a potential merger in early 2007 when Germany's Daimler AG began the process of selling off Chrysler that culminated in a deal later that year to sell the automaker to Cerberus.

GM Chief Executive Rick Wagoner also said last year that he saw some potential for Cerberus to combine GMAC with Chrysler Financial, the finance company affiliated with the No. 3 automaker.

Analysts have questioned Chrysler's ability to survive as a stand-alone automaker, given its reliance on sales to North America for some 90 percent of its revenue.

But a combination with GM would match two companies with overlapping weaknesses, analysts said when merger talks first emerged.

For one thing, both GM and Chrysler have been hurt by their reliance on sales of trucks and SUVs. For another, both have been struggling to cut union-represented production jobs in reaction to weaker sales.

Chrysler has also had discussions about a tie-up with India's Tata Motors and Italy's Fiat in recent months.

GM shares fell to near a 60-year low this week on fears the global financial crisis could derail its turnaround plans.

GM and Ford both ruled out on Friday seeking bankruptcy protection.

NHK, Japan's public broadcaster, first reported that Ford, which has 33.4 percent of Mazda, plans to sell about most of its stake and has already approached Japanese companies on the sale.

GM shares fell as low as $4 early on Friday, the lowest price for the stock since 1949, but recovered and ended up 13 cents, or 2.7 percent higher, at $4.89 on the New York Stock Exchange.

Credit ratings agency Standard & Poor's said on Thursday that both GM and Ford had adequate liquidity for 2008, but deteriorating industry fundamentals would make liquidity a serious challenge in 2009.

Also on Thursday, industry forecaster J.D. Power and Associates said the global auto markets could be in danger of an "outright collapse" in 2009 as a slowdown that began in North America spills over to other markets.

U.S. auto sales have fallen for three consecutive years to hit 15-year lows in recent months.

Many analysts now expect further declines in 2009 and some slowing in other regions around the world, adding pressure on GM and other U.S. automakers that have been restructuring.

GM, which posted a second-quarter net loss of $15.5 billion, announced plans in July to improve its liquidity by about $15 billion by the end of 2009, about two-thirds through cost cuts and the rest through asset sales and new borrowing.

Ford, which posted a $2.7 billion net loss in the second quarter, went to capital markets to raise more than $23 billion in late 2006. Ford Chief Executive Alan Mulally said earlier on Friday that the company was watching its cash flow carefully.
 
there are other stocks that IMO are not a gamble. The way I see it, it's raining money & I need a bucket.

I have a bucket, but it's a small one. Need to grow it some.
 
GM needs someone to take them over.... /ubbthreads/images/graemlins/wink.gif

They have WAY too much repetition in their product lines.

Why buy a GMC Truck, when a Chevy Truck is the same thing? /ubbthreads/images/graemlins/smiliesmack.gif

They have the same products in all their production lines with different badges on them. That HAS to be expensive!
I have wondered about this since they closed out the Oldsmobile line...I thought they would follow suit on GMC, Pontiac, and Buick too.

All they need is Chevy & Cadillac.

Of course, Ford-Lincoln-Mercury isn't doing any better. /ubbthreads/images/graemlins/crazy.gif
 
Nope OFT! It's sad when BEEF is considered a LUXURY item. /ubbthreads/images/graemlins/mad.gif

Just in time for Fall Shipping too... /ubbthreads/images/graemlins/crazy.gif
 
Quote:
javafour Quality of workmanship is another reason. US car makers have fallen way behind.



You may be right that this is a perception. Now, whether or not it is true is debatable, naturally:

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080605/AUTO01/806050396&imw=Y

Ford, General Motors improve in quality survey
Bryce G. Hoffman / The Detroit News


Ford Motor Co. and General Motors Corp. made impressive gains in J.D. Power and Associates' influential survey of initial vehicle quality, but Chrysler LLC continued to lag the rest of the industry.

Ford's Mercury brand passed Honda Motor Co., the first time in recent memory an American marque has outperformed one of Japan's top brands. And GM's Chevy Malibu was singled out as one of the best new vehicles of the year. But all three Chrysler brands ranked below average, with Jeep finishing last in the annual study.

"Ford has shown consistent improvement for the past five years, despite its restructuring," said David Letson, senior vice president of auto product quality at J.D. Power. "No other full-line manufacturer has done that."

Advertisement

That includes Japan's quality stalwarts, Toyota Motor Corp. and Honda, Letson said, noting that Ford's quality gains have consistently outpaced the industry.

Ford global quality chief Bennie Fowler said results reflect the hard work and commitment of Ford employees and suppliers, but he acknowledged that the car-buying public still needs to be convinced.

"Quality is permeating the whole culture at Ford," Fowler told The Detroit News. "But we know that we have a long way to go to win the confidence of consumers back."

The Ford brand rose from No. 10 last year to tie Jaguar for the No. 8 slot in this year's survey, which measures the number of mechanical problems and design-related issues experienced by consumers during their first 90 days of vehicle ownership.

David Sargent, vice president of automotive research at J.D. Power, presented the findings Wednesday to the Automotive Press Association in Detroit. He said that industrywide quality improved by 6 percent, with the number of problems per 100 vehicles falling to 118 from last year's average of 125.

Chrysler 'not satisfied'
Porsche was once again the highest-ranked brand, with 87 problems per 100 vehicles, followed by Infiniti at 98 and Lexus with 99.

Mercedes-Benz tied Toyota for fourth place with 104. They were followed by Mercury in sixth place with 109.

The other brands in the top 10 were Honda with 110, Ford and Jaguar with 112, and Audi, Cadillac and Chevrolet with 113 problems per 100 vehicles.

Hyundai, Pontiac and Lincoln also rated above average, but Lincoln slipped to 15th from third.

Mazda, which is controlled by Ford, posted the biggest quality gain of any brand in the annual rankings. It tied GMC at No. 22, up from a second-to-last No. 34 in last year's survey.

On the other end of the spectrum, Jeep had the most reported problems with 167 issues per 100 vehicles.

The Chrysler and Dodge brands improved over last year, but were still below the industry average.

"We're not satisfied," said Chrysler spokesman Ed Saenz. "The new management here absolutely gets how important quality is."

Malibu wins a top slot
Sargent said the survey results are "a pretty good predictor" of long-term vehicle quality and consumer satisfaction.

That seems to be the case at Ford. Though the results of J.D. Power's own three-year quality study have not yet been released, an annual survey conducted by the RDA Group for Ford showed the same ranking among non-luxury brands.

Ford plans to release that report to employees today. A copy obtained by The News showed that just 0.6 problems per vehicle separated first-ranked Toyota from fourth-ranked Ford in the study of 2005 model year vehicles, which ranked Mercury second and Honda third.

Other automakers also use RDA's data, and its reports are generally a good indicator of how well a brand will do in J.D. Powers' surveys.

J.D. Power also ranks individual models by segment. GM, Ford, Honda and Toyota each took home three segment awards for individual models.

GM's new Malibu won in the hotly contested midsize car segment, an impressive achievement for an all-new model.

GM also claimed top honors in the large pickup segment for the light-duty Chevy Silverado pickup. The Pontiac Grand Prix received the large car award, although GM has since discontinued the model.

"We did what we said we would do," said James Hresko, GM North America vice president of quality, in an online chat with reporters following Wednesday's announcement.

"We had aggressive, ongoing follow-up with all functions involved, such as engineering, manufacturing, purchasing, supplier quality, etc., to ensure our quality requirements would be achieved. The Chevy Malibu is the perfect example that we can build a great car and we expect our future cars to do as well. The launch of the Malibu met our expectations and our learnings from it will be applied to the next launches."

Ford's E-series won the award for best van, while the Lincoln Navigator received top honors in the large premium sport utility vehicle segment. Mazda's MX-5 Miata won for compact sporty car.

Toyota won in the large premium car segment for its Lexus LS, in the midsize premium SUV segment for its Lexus GX 470 and in the large SUV segment for its Toyota Sequoia.

Honda's Fit won top honors in the subcompact segment, its Civic was ranked first in the compact car segment and its CR-V claimed the top slot in the compact SUV category.

Sargent noted that those are the segments consumers are migrating toward as gasoline prices continue to rise.

GM factory recognized
J.D. Power also handed out awards for factories.

Among Detroit automakers, only GM was recognized. Its Fairfax II plant in Kansas City, Kan., which manufactures the Malibu and Saturn Aura, received a bronze award.

The two highest-rated plants in North America both belonged to Toyota.

Its Baja plant in Mexico received the gold medal, while its factory in San Antonio, Texas, received the silver.

The Mercedes-Benz flagship factory in Sindelfingen, Germany, was the highest-rated in the world.

The survey looked at 2008 model year cars and trucks purchased or leased between November 2007 and January 2008. This year's results were based on responses from some 81,500 owners and leasees.

Detroit News reporter Sharon Terlep contributed to this report.
 
Quote:
As long as I can buy American that's exactly what I'll be driving. Ford man here.




Do you think a Ford Ranger is built by Ford? How many of the parts on your Ford are Ford built?
 
Quote:
As long as I can buy American that's exactly what I'll be driving. Ford man here.



Actually so am I. I drive an Expedition. Before I had kids I had a number of F-series p/u's over the years.

Chev has a nice product line, I just happened to develop over the years a brand loyalty to Ford. I did have a Dodge 4X4 1/2T p/u with their 318 back in HS and it left a bad taste in my mouth about Dodges, it just kinda turned me off to them. Again, just personal preference. I'm sure there are lots of guys smarter than me who like Dodges better and hate Fords, lol!
 
They are built by ford, but almost the whole thing is created and assembled outside the US. The same is true for every other brand of US made vehicles. A lot of them are made in mexico.
 
Quote:
They are built by ford, but almost the whole thing is created and assembled outside the US. The same is true for every other brand of US made vehicles. A lot of them are made in mexico.



That's why thier quality of workmanship has impoved the past few years.
 
Quote:
Quote:
As long as I can buy American that's exactly what I'll be driving. Ford man here.




Do you think a Ford Ranger is built by Ford? How many of the parts on your Ford are Ford built?



I know a lot of the Rangers are assembled in the Twin Cities, MN and last I checked they were about 80% domestic content. It is also sold as a Mazda, so the 'foreign' Mazda is really a US small truck, lol!
 
Back
Top