Time to Buy GM stock? - GreenHybrid

MajorHy · #1 (**permalink**) 05-06-2005, 10:19 PM

Hmmm, Toyota helping GM and perhaps Ford w/ potential Hybrid issues?? Never too late, imo - more power to them..

One interesting proposal, however, suggested by Toyota President towards end of article...

http://www.spacedaily.com/news/car-tech-05f.html

Toyota To Discuss Safety, Environmental Tech Cooperation With GM

Smarter cars using new technologies and energy sources will transform the global automobile.

Toyota Motor expected to offer General Motors cooperation on safety and environmental technologies.

GM chairman will visit Japan for talks with Toyota's President when they are expected to discuss ways that Toyota may work with GM.

EricGo · #2 (**permalink**) 05-06-2005, 11:11 PM

Buy stock of the company now in junk bond status, losing ~ 5 Billion/year, and that *still* cannot see the "business case" for hybrids ??

I think not.

I wonder if Toyota's offer to help GM with safety and the environment means buy GM ? I sure hope not -- I'd hate to think what it would do to Toyota stock.

Tink · #3 (**permalink**) 05-07-2005, 12:03 PM

I heard on CNBC early last week that Toyota is considering raising their prices so that GM/Ford can more easily compete. Toyota thought that might circumvent their perceived inevitable tarrif situation if American car companies were not able to compete.

It's not the hybrids that are hurting them, IMO. It was the finance wars - now, everyone has a new GM/Ford that wanted one, and it KILLED the resale value so anyone who might want to trade, can't. Too many used after the stampede. It was a LOT cheaper to buy new at 0% than one or two years old at standard %. I have 3 friends (that I can think of) that traded 1.5 year old or less GM trucks or Suburbans for the 0%.

And the obvious: gas prices don't help their staple....

MajorHy · #4 (**permalink**) 05-07-2005, 08:01 PM

It will indeed be interesting to see if and how much Toyota will raise it's prices or if Toyota instead will opt to soften the export volume for US markets.

Interesting too, will be how many 5,000 lb + Silverado Hybrids will be spoken for by 2007-2008 and how sold such a US based market will be for heavy weight, tough-Hys?

MajorHy · #5 (**permalink**) 05-08-2005, 09:23 PM

Well, according to GM spokesperson, via AP, I guess the GM/Toyota tech share news is not fact.

I'd support GM completely if they decided to reverse their decision. Maybe buy batteries direct from Toyota, or whatever... cooperation is cooperation during this infantile transformation.

Tink · #6 (**permalink**) 05-09-2005, 05:38 AM

Toyota, as reported on CNBC this morning, indicated that they would be willing to share hybrid technology with GM. Neither company, however, confirmed that they were in talks to do this.

It is my opinion that, in an effort to avoid US governmental competitive hurdles, Toyota would give away access to their technology for a period.

As I mentioned earlier, Toyota wants to fix GM's competitiveness b4 the government has to.

Tink · #7 (**permalink**) 05-09-2005, 05:40 AM

Looks like the Asian Wall street journal and... Jason, were ahead of CNBC on this:

http://www.greenhybrid.com/discuss/g...urce.2158.html

ElectricTroy · #8 (**permalink**) 05-11-2005, 05:24 AM

I'm carefully watching GM stock. A giant company like that won't just disappear, so it's a safe investment IMHO, and will eventually climb back up again.

.

Also, it's not really a fair competition. GM/Ford are weighed down with lots of retirees, and a large pension debt to pay those ex-employees. Toyota doesn't provide pension, and therefore not weighed down with that debt.

troy

Delta Flyer · #9 (**permalink**) 05-11-2005, 06:47 AM

I am concerned about GM. In 1980, they had 50% of the US market with Ford and Chrysler on the verge of going under. They had five distinctive models:
- Cadilliac
- Chevy
- Oldmobile (discontinued)
- Pontiac & Buick (one of these will probably be dropped within three years)

For the past 25 years, GM has been dismissive of medium to subcompact car market, then hybrid engines. Toyota has gladly filled in the vacuum and made a profit. The generation that grew up on GM is dying. I for one would have loved to be driving a hybrid Saturn, but GM did not think it worthwhile...

The age of easy profits are over for GM. I hope they adjust before their choices become more painful. Last I heard, the 50% share of the US marked has dwindled to something like 25%.