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Steve Funk  

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  • General Motors Is Attractively Valued [View article]
    What is your prediction on how many US government officials and appointees are indicted? After all, the US government was running GM for many years while this was happening and also said nothing.
    Jul 28, 2015. 12:12 PM | Likes Like |Link to Comment
  • General Motors Is Attractively Valued [View article]
    This is a cyclical business and by most measures we have to be getting close to a top in the auto cycle. There is a lot of pain in riding the cycle down. Are you sure the timing is right on this one? There may be good reason for low price.
    Jul 27, 2015. 12:39 PM | 2 Likes Like |Link to Comment
  • General Motors Is Poised For Growth This Year [View article]
    funfun,
    I agree that we may be approaching a cyclic top in autos, and therefore might not be a good entry point here.

    You seem to have a clear picture of who-knew-what-when inside GM during the last 15 years. As an investor I think this blows over. Most customers have seen that this has been about 5 deaths out of 30,000+ each year. On top of that you are really only at risk if you are a teen with five pounds of junk on your keychain.

    We will know this quarter, but it looks like GM will not have to pay out much more than the $2.9B already set aside.
    Feb 18, 2015. 12:48 PM | Likes Like |Link to Comment
  • Chevy Volt: The Enviro-Friendly Way Of Destroying Value [View article]
    russLL,
    Do you propose GM simply give the market to the Toyota Sequoia and Nissan Armada? All full-line manufacturers have vehicles in this class.
    May 1, 2013. 12:30 AM | Likes Like |Link to Comment
  • Chevy Volt: The Enviro-Friendly Way Of Destroying Value [View article]
    Tdot,
    At least some of the "channel stuffing" was prompted by overcapacity and union/ government rules that made the company pay for labor whether the were making cars or not. That caused some twisted thinking. Capacity is much more in line now and rental car companies sold off making it much easier to match production & demand.
    Apr 18, 2013. 11:25 PM | 1 Like Like |Link to Comment
  • Chevy Volt: The Enviro-Friendly Way Of Destroying Value [View article]
    datadave,
    It is an often repeated misnomer that Ford makes more money on trucks than GM. They both sell roughly the same number of trucks and SUV's. Toyota has Tundra capacity of 300,000 units http://bit.ly/Zr9Paw. For 2012 Ford sold 645,000 F-150's and GM has always been close when Chevy and GMC sales are combined. Bottom line is all three have important truck lines. I don't think that you will find any data that proves GM, Toyota, or Ford sacrifice their car lines for truck sales. It just does not make business sense.
    Apr 17, 2013. 11:25 AM | 1 Like Like |Link to Comment
  • Chevy Volt: The Enviro-Friendly Way Of Destroying Value [View article]
    Tdot,
    Wikipedia has become corporate brochure ware and would certainly not air internal squabbles.

    Yes, the Volt was done and getting ready for production as early as 2007 (http://ti.me/Zrumau). But after the bailout when divisions were being closed and sold, there were stories (not finding them now) that the Volt was on the chopping block.
    Mar 28, 2013. 02:25 PM | Likes Like |Link to Comment
  • Chevy Volt: The Enviro-Friendly Way Of Destroying Value [View article]
    Yes, the Volt was designed and ready to go when the government takeover happened, but GM had decided to delay production, then not.
    Mar 28, 2013. 02:13 PM | 1 Like Like |Link to Comment
  • Chevy Volt: The Enviro-Friendly Way Of Destroying Value [View article]
    Billwzw,
    You are right. The government has had a huge hand in pushing the EV's. Manufacturers will not be able to meet new CAFE standards with traditional engines.

    The second and bigger problem is that although the US is selling GM shares, they still have a board seat. As does the UAW and Canada. If I recall, the Volt decision was announced the shortly after Obama fired one of a series of CEO's. Coincidence?

    GM will have to stick with the Volt for now.
    Mar 28, 2013. 11:21 AM | Likes Like |Link to Comment
  • General Motors: It Is Better Than Ever Before [View article]
    elroy,
    I am not a legal expert, but there are very restrictive dealership laws in all 50 states. Many of the laws can be traced back to the 1930's when manufacturers could own their own dealerships in profitable territories and revoke dealerships at will, devastating some small towns. These laws make it hard to close dealerships. When GM shut down the Olds division it cost billions, much of that was negotiating and compensating dealers for their loss. Interestingly, Elon Musk and Tesla are attempting to skirt the dealership laws with his new internet ordering. He has been sued in Massachusetts (I think) and won, but has been banned from delivering cars in Kansas. It will be interesting to see him challenge these old laws. He has written about the dealer laws on the Tesla web site and in the Tesla annual report.
    Mar 19, 2013. 12:35 PM | Likes Like |Link to Comment
  • General Motors: It Is Better Than Ever Before [View article]
    tcbracing,
    There was a lump sum buyout of salary workers and a pension change from defined benefit to defined contribution. I am a GM supporter, but you have to be honest, those moves resulted in the retirees getting less and GM saving billions by their own admission. The UAW still has the defined benefit, do they not? The health premium increases are a "cut" of sorts.
    Mar 19, 2013. 12:29 PM | Likes Like |Link to Comment
  • General Motors: It Is Better Than Ever Before [View article]
    Elroy,
    I have not heard many people claim that GM had a normal bankruptcy. In fact rule of law, including state dealership laws, were simply set aside to quickly facilitate the reorganization.

    You mention PBGC. It is probably a big reason for the bailout. If the GM pensioners were allowed to go into the PBGC it would have brought PBGC down. Instead, UAW money was privately quarantined, my understanding, while salary retirees benefits were arbitrarily cut. I predict this precedent of the Executive branch assuming control of a corporation will have future negative repercusions.
    Mar 18, 2013. 04:07 PM | Likes Like |Link to Comment
  • General Motors: It Is Better Than Ever Before [View article]
    My thoughts exactly. After the US sells their shares (2014) I don't see how they can not start paying a dividend. Every other auto company stock has a dividend.
    Mar 15, 2013. 05:07 PM | Likes Like |Link to Comment
  • U.S. Sells More Of GM - What Happens Next? [View article]
    I don't disagree that the recession would have been much worse, and the bailout prevented that.

    In my confusing writing style, I was just trying to point out the very common argument: Do you want your pain all at once, without Novacain? or Do you prefer a water boarding slow death? I have personal involvement with this one that stops me from saying we should not have done the bailout. I do thing that costs will continue to pop up.

    Philosophy aside, my stock take on GM is that it might be a good time to buy later this year when the stock repurchase is almost done and betting that GM will start a dividend in 2014. Both events should help the stock.
    Mar 14, 2013. 01:15 PM | 3 Likes Like |Link to Comment
  • General Motors Continues Its Struggle To Grow [View article]
    Muhammad,
    I am surprised that you did not list Volkswagon as a major competitor. VW is especially strong in Europe were GM is losing money with no end in sight.

    You also do not mention how the US government dumping shares right now might affect price. I can't imagine share price going up appreciably until after all US shares have been sold in early 2014.
    Mar 14, 2013. 01:02 PM | Likes Like |Link to Comment
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