These days, with gas prices being so high, I wonder if these companies are going to go out of business? They only manufacture giant cars that guzzle gas. And with the price of imports being fairly comparable to many American cars, why wouldn't you choose a car that got better gas mileage?
Just to be clear, I am not advocating that this happen. I think that it would be very unfortunate- it would eliminate many really good paying jobs. But, I think that the companies are headed for this fate. What do you think?
2006-06-24 16:05:45 · 8 answers · asked by Princess 5 in Business & Finance ➔ Corporations
GM, Ford are no longer profitable making cars in North America and Europe.
Both lack
(1) good customer service
(2) good range of saleable products
(3) competitive price for similar performance.
And
(4) quality of both my Ford and GM cars are bad
(5) I get no respect from a Ford or GM dealer
(6) service charges are 20 to 30% more than non-GM/Form dealers for the same type of work (eg oil change, wheel alignment, etc)
They are doomed! Sell the stock. You cannot even trade in you GM or Ford vehicle for a decent price at the dealership.
The entire management needs to be changed.
2006-06-24 16:25:04 · answer #1 · answered by r 3 · 4⤊ 3⤋
We all new the Chinese were coming in full force in 2006. they announced it and our wonderful prez. just let it happen. They are going to be flooding our market with their cars and I would suppose out selling our American made cars. Will they go out of business? No, they will downsize, which will lower their costs, ( temp) which always looks good on paper, making their profit margins look good, more people will buy their stocks and everyone gets richer but the people that just got laid off. But they are Union workers, which for the most part, make a fair living and should have plenty money to live on till the company hires them back. It is a way for businesses to clean out the cob webs, so-to-speak. Again.... NO.
2006-06-25 19:07:13 · answer #2 · answered by yenkoman1969 3 · 0⤊ 0⤋
Neither one will go out of business, but both are currently in a war of attrition. Both are gonig to hang on as long as they can until one of them has to file for bankruptcy protection. When one of them files, this will give the other one the necessary leverage to renegotiate their contracts with the unions.
It doesn't matter what divisions or assets they sell off. At the rate they're both losing money, selling off divisions doesn't cure the problem, which is high cost. All selling assets off does is generate cash to delay the inevitable. All they're really doing right now is trying to outlast each other.
Even the one who files will not necessarily go out of business. But such an event will harm the credit structure and supply chain of the loser, making it that much harder to regain some semblance of dominance.
2006-06-25 14:58:29 · answer #3 · answered by VinTek 7 · 0⤊ 0⤋
No.
General Motors can still sell Hummer, Holden, Vauxhall, Saab and Saturn.
They can sell 3% of Suzuki
They already sold 78% of GMAC Commercial Holding for $9 Billion and they can sell the rest.
They already sold 51% of GMAC for $14 Billion and they can sell the rest.
Ford can sell its 33.4% controlling interest in Mazda.
Ford can sell Land Rover back to BMW.
Ford can spin off Volvo in the Stockholm Stock Exchange.
2006-06-25 01:39:25 · answer #4 · answered by Anonymous · 0⤊ 1⤋
I don't see them going out of business. I do however see drastic change for the big 3
2006-06-24 23:50:03 · answer #5 · answered by ML 5 · 0⤊ 0⤋
no, not with bio fuel and the development of cars that run on hydrogen
2006-06-24 23:12:31 · answer #6 · answered by james j 3 · 0⤊ 0⤋
yea they are....across the ocean got better cars
2006-06-24 23:07:56 · answer #7 · answered by Anonymous · 1⤊ 0⤋
sad, but the japs are kicking their butt.
right here in US
2006-06-24 23:10:31 · answer #8 · answered by jithu 2 · 1⤊ 0⤋