Steve Funk

Is General Motors Closer to a Default?

Kudo's to The Gavster. Most of the previous posts show little understanding of the auto industry, and I thought this forum was about the industry and investing in it. Bottom line is these comments show that the auto industry has become much like the jeans industry and much less like the hard goods industry. No one complains that Levi's are poor quality, they just like Buckle better and the stock reflects it. These are whims and the money goes to the new guy with cache. When you have the burden of history like GM and Levi you just can't get out from under it, no matter how good your product.

As for investing, there has to be someone looking at taking GM private. Serberos could combine GM and Chrysler and actually start getting some economies out of the deal. Ford would be a candidate, but the Ford family has shown themselves time and again to put their trust fund ahead of good business judgement, and they own controlling stock. Until this shakes out the auto stocks are way too dangerous. And that does not have anything to do with EV1 (which could not sell) or dealer performance.