The real question is will GM(as we know it) even be around 10 years from now. They are losing around 2% market share each year. Right now it is around 24.75%. In 2006 they are going to be short $1 billion dollars to fund their health and pension plans. Their bonds are near junk status now. The trade commission almost voted them junk bond status in Febr. but GM talked their way out of it and got a reprieve.
If GM bonds go junk status no financial institution can hold their bonds in their portfolio and they will have to sell them. If that happens GM's stock will go to about $4-5 per share.
Gm has a huge inventory of unsold cars and trucks and like the '70's still has their head up their butt in terms of small fuel effiecent cars and changing gears quickly in midway for unforseen sales problems.
Also first quarter sales are down something like 50-80% over last year because they used up all their incentives last year.
Shanghai Motors in China also royally screwed GM to the tune of billions of dollars. GM built the plant and spent millions on a small car design(Chevrolet Spark) and China just copied the car down to the littlest nut and bolt and made their own assembly line. Now Cherry motor car company is planning on exporting 50K per year by 2007. GM is suing Shangai Motors but they might as well get in line with the hundreds of other American companies screwed and filing lawsuits due to business dealing with our "friends" over there.
American CEO's need to learn that the chinese are in it for themsleves, not the US.
My rant for today
