User 169775's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/169775/comments http://seekingalpha.com/article/94802-are-hybrid-vehicles-worth-the-price?source=feed#comment-630720 630720

> 2. Battery lifetime has not been proven by a long history, but for
> all I have experienced with rechargeable batteries before, they get
> stale quicker than advertised.

You don't understand how the battery in a hybrid car works.

They last VERY long because they are NOT deep-discharged like your rechargeable batteries.

Rechargeable batteries wear out because of all the full-charge-then-full-... cycles. Hybrid car batteries DO NOT do that.

The Prius hybrid computer is always trying to keep the charge state of its hybrid battery between 60%-80%, where it has a life span measured in decades. Even when you see the charge state in the Prius MFD display a low charge state of just 2 red bars, the battery is still 60% charged.

Purely Battery-powered electric cars like the Tesla do go through full-charge-then-disch... cycles, which is why their battery life is problematic-- Tesla recommends replacing the battery pack in the Roadster after 5 years. Non-plug-in hybrids do not suffer from this problem because they don't deep-discharge their batteries.]]> Sat, 15 Aug 2009 00:23:02 -0400

> 2. Battery lifetime has not been proven by a long history, but for
> all I have experienced with rechargeable batteries before, they get
> stale quicker than advertised.

You don't understand how the battery in a hybrid car works.

They last VERY long because they are NOT deep-discharged like your rechargeable batteries.

Rechargeable batteries wear out because of all the full-charge-then-full-... cycles. Hybrid car batteries DO NOT do that.

The Prius hybrid computer is always trying to keep the charge state of its hybrid battery between 60%-80%, where it has a life span measured in decades. Even when you see the charge state in the Prius MFD display a low charge state of just 2 red bars, the battery is still 60% charged.

Purely Battery-powered electric cars like the Tesla do go through full-charge-then-disch... cycles, which is why their battery life is problematic-- Tesla recommends replacing the battery pack in the Roadster after 5 years. Non-plug-in hybrids do not suffer from this problem because they don't deep-discharge their batteries.]]> http://seekingalpha.com/article/155392-gm-s-chevy-volt-should-help-recapture-market-share?source=feed#comment-630715 630715
First of all, it has that huge battery pack down the middle of the car, which means the back has two bucket seats-- No car-width bench seat like a regular sedan. That means the Volt will seat 4, not 5.

People looking for a family car may reject it just for that reason alone.

Then you got the T-shaped battery pack extending well into the trunk space, and the bucket seats don't fold down, so you are stuck with a tiny trunk.

In comparison, the Toyota Prius seats 5 and has the versatility of a hatchback with fold-down rear seats, and costs $10,000 less (accounting for the $7500 Volt tax credit).

The Volt is going to suffer the same kind of impracticality that doomed the first-generation Honda Insight.

I'd rather buy the $49,000 Tesla Model S (which also qualifies for the $7500 tax credit). It seats 5, and costs less to maintain because it has no gasoline engine like the Volt, and you can order a Model S right now.]]> Sat, 15 Aug 2009 00:15:22 -0400
First of all, it has that huge battery pack down the middle of the car, which means the back has two bucket seats-- No car-width bench seat like a regular sedan. That means the Volt will seat 4, not 5.

People looking for a family car may reject it just for that reason alone.

Then you got the T-shaped battery pack extending well into the trunk space, and the bucket seats don't fold down, so you are stuck with a tiny trunk.

In comparison, the Toyota Prius seats 5 and has the versatility of a hatchback with fold-down rear seats, and costs $10,000 less (accounting for the $7500 Volt tax credit).

The Volt is going to suffer the same kind of impracticality that doomed the first-generation Honda Insight.

I'd rather buy the $49,000 Tesla Model S (which also qualifies for the $7500 tax credit). It seats 5, and costs less to maintain because it has no gasoline engine like the Volt, and you can order a Model S right now.]]> http://seekingalpha.com/article/156191-latest-on-hybrids-toyota-yaris-for-u-s?source=feed#comment-630701 630701
Between 1997 and 2003, Toyota had a compact hybrid built on the Echo/Vitz platform (the platform from which the Yaris is developed on).

What was this Yaris-sized compact hybrid?

The first-generation Toyota Prius! :-)

I can see how it will complement the now-much-bigger midsized 3rd-generation hatchback Prius though.]]> Fri, 14 Aug 2009 23:46:50 -0400
Between 1997 and 2003, Toyota had a compact hybrid built on the Echo/Vitz platform (the platform from which the Yaris is developed on).

What was this Yaris-sized compact hybrid?

The first-generation Toyota Prius! :-)

I can see how it will complement the now-much-bigger midsized 3rd-generation hatchback Prius though.]]> http://seekingalpha.com/article/94802-are-hybrid-vehicles-worth-the-price?source=feed#comment-270669 270669
For instance, the Ford Escape Hybrid has a combined output of 196hp from its I-4 engine and electrical motor. The regular I-4 Escape has 171hp.]]> Wed, 01 Oct 2008 14:48:50 -0400
For instance, the Ford Escape Hybrid has a combined output of 196hp from its I-4 engine and electrical motor. The regular I-4 Escape has 171hp.]]> http://seekingalpha.com/article/94802-are-hybrid-vehicles-worth-the-price?source=feed#comment-270661 270661
If it fails within the warranty period, the cost of replacement is FREE.

That is assuming you didn't do anything stupid to void the warranty, like crash the car, tamper with the hybrid system, etc.

Failure of the battery pack in the 2nd-generation Prius within warranty terms is virtually unheard-of.]]> Wed, 01 Oct 2008 14:44:43 -0400
If it fails within the warranty period, the cost of replacement is FREE.

That is assuming you didn't do anything stupid to void the warranty, like crash the car, tamper with the hybrid system, etc.

Failure of the battery pack in the 2nd-generation Prius within warranty terms is virtually unheard-of.]]> http://seekingalpha.com/article/91871-will-gm-s-volt-change-history?source=feed#comment-235197 235197 gm-volt.com/2008/06/18.../

Not sure how a $40,000 volt is going to compete against a $30,000 PHEV Prius with similar capabilities.]]> Wed, 20 Aug 2008 19:39:20 -0400 gm-volt.com/2008/06/18.../

Not sure how a $40,000 volt is going to compete against a $30,000 PHEV Prius with similar capabilities.]]> http://seekingalpha.com/article/91871-will-gm-s-volt-change-history?source=feed#comment-235194 235194
The base price for the Prius is $22,000, of which $3000 is the cost of the current Nickel-Metal-Hydride battery.

Take out the NiMH battery and put in the $10,000 Lion battery, you end up with a $30,000 PHEV Prius.

You need to check your math, amigo.]]> Wed, 20 Aug 2008 19:35:51 -0400
The base price for the Prius is $22,000, of which $3000 is the cost of the current Nickel-Metal-Hydride battery.

Take out the NiMH battery and put in the $10,000 Lion battery, you end up with a $30,000 PHEV Prius.

You need to check your math, amigo.]]> http://seekingalpha.com/article/91871-will-gm-s-volt-change-history?source=feed#comment-235175 235175
Toyota will be introducing a later version of its 3rd Generation Prius at around the same time, also to be powered by a Lion battery pack which can also give the Prius a 40-mile pure-electric range, just like the Volt. And it is expected to cost about $30,000. That's $10,000 less than the Volt.

When the average head of household is given a choice between the two cars with similar capability but $10,000 difference in price, it makes for a HUGE monkey wrench in GM's plans.

That's what happens when you give your rival a 10-year head-start in developing HEV/PHEV technology. :-P]]> Wed, 20 Aug 2008 18:52:55 -0400
Toyota will be introducing a later version of its 3rd Generation Prius at around the same time, also to be powered by a Lion battery pack which can also give the Prius a 40-mile pure-electric range, just like the Volt. And it is expected to cost about $30,000. That's $10,000 less than the Volt.

When the average head of household is given a choice between the two cars with similar capability but $10,000 difference in price, it makes for a HUGE monkey wrench in GM's plans.

That's what happens when you give your rival a 10-year head-start in developing HEV/PHEV technology. :-P]]> http://seekingalpha.com/article/91871-will-gm-s-volt-change-history?source=feed#comment-235174 235174
Toyota will be introducing a later version of its 3rd Generation Prius at around the same time, also to be powered by a Lion battery pack which can also give the Prius a 40-mile pure-electric range, just like the Volt. And it is expected to cost about $30,000. That's $10,000 less than the Volt.

When the average head of household is given a choice between the two cars with similar capability but $10,000 difference in price, it makes for a HUGE monkey wrench in GM's plans.

That's what happens when you give your rival a 10-year head-start in developing HEV/PHEV technology. :-P]]> Wed, 20 Aug 2008 18:52:55 -0400
Toyota will be introducing a later version of its 3rd Generation Prius at around the same time, also to be powered by a Lion battery pack which can also give the Prius a 40-mile pure-electric range, just like the Volt. And it is expected to cost about $30,000. That's $10,000 less than the Volt.

When the average head of household is given a choice between the two cars with similar capability but $10,000 difference in price, it makes for a HUGE monkey wrench in GM's plans.

That's what happens when you give your rival a 10-year head-start in developing HEV/PHEV technology. :-P]]> http://seekingalpha.com/article/91230-brand-names-important-but-not-key-to-investment-decisions?source=feed#comment-232196 232196
This year it's history repeating itself-- People buying Toyota Corollas that can get 30mpg COMBINED (not just highway as GM and Ford have been advertising) because of $4/gallon gas.

Ford and GM needs to realize that not only do they need to build cars that are put together well, they also need to make cars that are MORE FUEL EFFICIENT than the Japanese if they want to regain market share in North America.

The situation in Europe for Ford is not applicable here in North America. Ford is doing well in Europe because they have less-stringent emissions laws, which means Ford's fuel-efficient diesel cars are a big hit there. They can NEVER sell those diesels as-is here, because they don't meet the EPA's Tier2 emissions standards.

The situation for GM in China is also NOT applicable for the North American market-- GM is doing well in China because gas is still cheap there at $2 a gallon, and the noveau-riche Chinese middle class don't mind buying gas-guzzlers because of that.

Until one of the Big Three can produce a 50mpg car that is street-legal in the U.S. with comparable reliability and cost about the same as the Toyota Prius, they are not going to gain back market share in the era of $4/gallon gas.

(Don't bother mentioning the Chevy Volt. Sucker is going to cost $40,000 and by the time it comes out Toyota will have its 3rd-gen PHEV Prius with similar 40-mile-electric capability in the showrooms for $30,000.)]]> Sun, 17 Aug 2008 03:14:36 -0400
This year it's history repeating itself-- People buying Toyota Corollas that can get 30mpg COMBINED (not just highway as GM and Ford have been advertising) because of $4/gallon gas.

Ford and GM needs to realize that not only do they need to build cars that are put together well, they also need to make cars that are MORE FUEL EFFICIENT than the Japanese if they want to regain market share in North America.

The situation in Europe for Ford is not applicable here in North America. Ford is doing well in Europe because they have less-stringent emissions laws, which means Ford's fuel-efficient diesel cars are a big hit there. They can NEVER sell those diesels as-is here, because they don't meet the EPA's Tier2 emissions standards.

The situation for GM in China is also NOT applicable for the North American market-- GM is doing well in China because gas is still cheap there at $2 a gallon, and the noveau-riche Chinese middle class don't mind buying gas-guzzlers because of that.

Until one of the Big Three can produce a 50mpg car that is street-legal in the U.S. with comparable reliability and cost about the same as the Toyota Prius, they are not going to gain back market share in the era of $4/gallon gas.

(Don't bother mentioning the Chevy Volt. Sucker is going to cost $40,000 and by the time it comes out Toyota will have its 3rd-gen PHEV Prius with similar 40-mile-electric capability in the showrooms for $30,000.)]]> http://seekingalpha.com/article/90930-chrysler-s-rebadging-plan-strategic-blunder-for-nissan?source=feed#comment-230300 230300
Agreed. Toyota has left the door open for Chrysler to introduce a hybrid minivan for the past 5 years. And Chrysler has not taken advantage of it!

The window of opportunity is closing fast. Toyota has been selling their Estima Hybrid minivan in Japan for years, and in the next couple years they plan to bring it to the U.S. as the Sienna Hybrid.

The opportunity is there.. It's just Chrysler is doing everything they can to flub it!

]]> Thu, 14 Aug 2008 12:07:58 -0400
Agreed. Toyota has left the door open for Chrysler to introduce a hybrid minivan for the past 5 years. And Chrysler has not taken advantage of it!

The window of opportunity is closing fast. Toyota has been selling their Estima Hybrid minivan in Japan for years, and in the next couple years they plan to bring it to the U.S. as the Sienna Hybrid.

The opportunity is there.. It's just Chrysler is doing everything they can to flub it!

]]> http://seekingalpha.com/article/89994-the-electric-car-battery-battle?source=feed#comment-226898 226898
Objectivity is right. Imagine the amount of power needed to compress that air to 4500PSI. When you buy a fillup of that air at 4500PSI, you are paying for the gasoline to run the compressor to compress that air to 4500PSI. Sorry air-car fans, there is no such thing as a free lunch.]]> Sat, 09 Aug 2008 19:05:49 -0400
Objectivity is right. Imagine the amount of power needed to compress that air to 4500PSI. When you buy a fillup of that air at 4500PSI, you are paying for the gasoline to run the compressor to compress that air to 4500PSI. Sorry air-car fans, there is no such thing as a free lunch.]]> http://seekingalpha.com/article/89767-detroit-tow-ridiculous?source=feed#comment-226897 226897
I don't see the point of your complaint. The current market conditions is awesome for you country folks who need to buy SUVs-- The carmakers are offering them with 0% financing or incentives up to $6000. It's a great time to buy an SUV if you actually need one.

Fact is 79% of the U.S. population lives in urban areas according to the 2000 U.S. Census. Most of those folks don't need to haul bushels of crop or tow trailers with livestock, and with fuel prices being what they are, it is only natural that they are migrating to 4-cylinder cars. U.S. carmakers have encountered this situation before in the 1970s, apparently they never studied history so now they are doomed to repeat it.

Market forces at work.

]]> Sat, 09 Aug 2008 18:48:28 -0400
I don't see the point of your complaint. The current market conditions is awesome for you country folks who need to buy SUVs-- The carmakers are offering them with 0% financing or incentives up to $6000. It's a great time to buy an SUV if you actually need one.

Fact is 79% of the U.S. population lives in urban areas according to the 2000 U.S. Census. Most of those folks don't need to haul bushels of crop or tow trailers with livestock, and with fuel prices being what they are, it is only natural that they are migrating to 4-cylinder cars. U.S. carmakers have encountered this situation before in the 1970s, apparently they never studied history so now they are doomed to repeat it.

Market forces at work.

]]> http://seekingalpha.com/article/89260-is-one-automaker-default-almost-a-sure-thing?source=feed#comment-226360 226360
Considering that in the past 10 years Detroit spent the same amount on R&D as the 10-year Apollo Program, you would expect them to put out revolutionary things!

I remain unimpressed.]]> Fri, 08 Aug 2008 14:51:40 -0400
Considering that in the past 10 years Detroit spent the same amount on R&D as the 10-year Apollo Program, you would expect them to put out revolutionary things!

I remain unimpressed.]]> http://seekingalpha.com/article/89767-detroit-tow-ridiculous?source=feed#comment-225727 225727
I say leave Detroit to their devices and let market forces determine their fate.]]> Fri, 08 Aug 2008 04:17:21 -0400
I say leave Detroit to their devices and let market forces determine their fate.]]> http://seekingalpha.com/article/89260-is-one-automaker-default-almost-a-sure-thing?source=feed#comment-224705 224705
To put it in perspective, the Apollo program cost the U.S. government $20 billion over a period of 10 years, and it put men on the moon and spurred revolutionary technologies such as integrated circuit miniaturization and fly-by-wire controls.

Even after adjusting for inflation, $19 billion per year for 10 years from the Big Three would have been equal to the the expenditure of the Apollo program. What does the Big Three have to show for it for the past 10 years (1998-2008)?
]]> Thu, 07 Aug 2008 05:20:14 -0400
To put it in perspective, the Apollo program cost the U.S. government $20 billion over a period of 10 years, and it put men on the moon and spurred revolutionary technologies such as integrated circuit miniaturization and fly-by-wire controls.

Even after adjusting for inflation, $19 billion per year for 10 years from the Big Three would have been equal to the the expenditure of the Apollo program. What does the Big Three have to show for it for the past 10 years (1998-2008)?
]]> http://seekingalpha.com/article/89080-auto-sales-are-cause-for-optimism?source=feed#comment-223082 223082
Still, what people DID overbuy when it comes to cars is size.. Look at how so many are frantically looking to unload their superhuge gas-guzzling SUVs right now. :-)]]> Tue, 05 Aug 2008 10:11:46 -0400
Still, what people DID overbuy when it comes to cars is size.. Look at how so many are frantically looking to unload their superhuge gas-guzzling SUVs right now. :-)]]> http://seekingalpha.com/article/88708-how-gm-plans-to-muddle-through?source=feed#comment-221722 221722
Unfortunately, EMD is no longer part of GM. It got sold off in 2005. In its last years under GM management, EMD seems to be heading downhill too-- They were getting their butts kicked by General Electric's Dash-9s, AC4400CWs and the Gevos.

John Smyth:

Keep in mind in 2010 Toyota will be releasing its plug-in 3rd-generation Prius with the same Lithium Ion technology as the GM Volt, also with a 40-mile pure-electric range. AND, the 3rd-gen PHEV Prius will be selling for about $30,000 compared to $40,000 for the Volt. Things don't look good.

I'm not buying an GM stock until I see it becomes positive-equity (i.e. it owes less than what the stock float is worth), and it gets 2 consecutive profitable quarters.]]> Sun, 03 Aug 2008 16:53:48 -0400
Unfortunately, EMD is no longer part of GM. It got sold off in 2005. In its last years under GM management, EMD seems to be heading downhill too-- They were getting their butts kicked by General Electric's Dash-9s, AC4400CWs and the Gevos.

John Smyth:

Keep in mind in 2010 Toyota will be releasing its plug-in 3rd-generation Prius with the same Lithium Ion technology as the GM Volt, also with a 40-mile pure-electric range. AND, the 3rd-gen PHEV Prius will be selling for about $30,000 compared to $40,000 for the Volt. Things don't look good.

I'm not buying an GM stock until I see it becomes positive-equity (i.e. it owes less than what the stock float is worth), and it gets 2 consecutive profitable quarters.]]> http://seekingalpha.com/article/44118-jim-cramer-s-mad-money-in-depth-stock-picks-8-9-07?source=feed#comment-220859 220859 Sat, 02 Aug 2008 05:11:25 -0400 http://seekingalpha.com/article/88575-how-is-gm-still-alive?source=feed#comment-220766 220766
Not mocking legit hydrogen fuel-cell cars like the Honda FCX Clarity, but just how do you propose to fuel them? Not until most gas stations in the U.S. has a hydrogen-dispensing pump will FC vehicles become practical.

And how long would that take? 10 years? 15 years? Not fast enough to save GM's bacon, I'm afraid.

]]> Fri, 01 Aug 2008 21:38:58 -0400
Not mocking legit hydrogen fuel-cell cars like the Honda FCX Clarity, but just how do you propose to fuel them? Not until most gas stations in the U.S. has a hydrogen-dispensing pump will FC vehicles become practical.

And how long would that take? 10 years? 15 years? Not fast enough to save GM's bacon, I'm afraid.

]]> http://seekingalpha.com/article/88575-how-is-gm-still-alive?source=feed#comment-220633 220633 Fri, 01 Aug 2008 16:58:26 -0400 http://seekingalpha.com/article/88575-how-is-gm-still-alive?source=feed#comment-220213 220213
GM can build the most advanced fuel cell vehicle, but nobody will buy one because you can't get hydrogen to fuel them.

Not until most gas stations in this country has a pump that dispenses hydrogen will an FC vehicle become practical.

Likelihood of that happening? Slim to none.]]> Fri, 01 Aug 2008 11:15:35 -0400
GM can build the most advanced fuel cell vehicle, but nobody will buy one because you can't get hydrogen to fuel them.

Not until most gas stations in this country has a pump that dispenses hydrogen will an FC vehicle become practical.

Likelihood of that happening? Slim to none.]]> http://seekingalpha.com/article/87890-credit-cards-are-feeling-the-crunch?source=feed#comment-218761 218761
Now THERE is a growth opportunity if there ever is one!

That's why I'm long on Visa ever since I got in at $56 / share.

They need to hold an Olympic games in India! (another billion people there!)]]> Wed, 30 Jul 2008 17:25:45 -0400
Now THERE is a growth opportunity if there ever is one!

That's why I'm long on Visa ever since I got in at $56 / share.

They need to hold an Olympic games in India! (another billion people there!)]]> http://seekingalpha.com/article/85266-earnings-preview-jp-morgan-chase?source=feed#comment-207447 207447
Wasn't one of the conditions for the JPM takeover that the Fed guarantee the $30 billion of Bear Stearn debt?]]> Thu, 17 Jul 2008 02:38:20 -0400
Wasn't one of the conditions for the JPM takeover that the Fed guarantee the $30 billion of Bear Stearn debt?]]> http://seekingalpha.com/article/84536-big-three-automakers-recapitalization-or-bankruptcy?source=feed#comment-205610 205610 www.detnews.com/apps/p...

Not sure how that would affect the middle class, considering that UAW members isn't even half a percent of the entire U.S. workforce.

]]> Mon, 14 Jul 2008 22:02:06 -0400 www.detnews.com/apps/p...

Not sure how that would affect the middle class, considering that UAW members isn't even half a percent of the entire U.S. workforce.

]]> http://seekingalpha.com/article/84255-general-motors-general-malaise?source=feed#comment-203825 203825
Chevy's commercials say they have a line up with more cars that get 30mpg than other makers, but that's misleading. 30mpg HIGHWAY only. If you factor in city mileage, even the Chevy Aveo (which is made by Daewoo in Korea by the way, not here in the U.S.) gets only 25mpg.

Meanwhile, Toyota has Yarises and Corollas that can get 30mpg COMBINED, ditto Honda with their Civics and Fits.

Why should the American consumer keep buying GM cars if they can't match the fuel economy of foreign cars to prop them up so GM has no incentive to change? That's corporate socialism at its very worst.

]]> Sat, 12 Jul 2008 16:12:46 -0400
Chevy's commercials say they have a line up with more cars that get 30mpg than other makers, but that's misleading. 30mpg HIGHWAY only. If you factor in city mileage, even the Chevy Aveo (which is made by Daewoo in Korea by the way, not here in the U.S.) gets only 25mpg.

Meanwhile, Toyota has Yarises and Corollas that can get 30mpg COMBINED, ditto Honda with their Civics and Fits.

Why should the American consumer keep buying GM cars if they can't match the fuel economy of foreign cars to prop them up so GM has no incentive to change? That's corporate socialism at its very worst.

]]> http://seekingalpha.com/article/83648-valuing-gm-28-one-day-7-the-next?source=feed#comment-199558 199558
Even though Toyota's sales are down because they lost their bet on SUVs by introducing gas-guzzlers like the Tundra at such an inopportune time, they still have a fuel-efficient lineup to fall back on. Ramping up production of their existing 30mpg+ lineup is just a matter of increasing capacity rather than having to design everything from the ground up.

GM had NO foresight to have "plan B" to fall back on unlike Toyota. And the "blow your socks off at mpg" Volt is merely an attempt at catch-up, seeing as how Toyota will be to market AT THE SAME TIME with its comparable plug-in Prius (2010).

Now GM are facing negative equity where they will owe more money than the value of the stock, which means the shareholders WILL be the first ones to be left without a chair to sit on when the music stops. Personally I think it's a foolhardy time to be playing musical chairs by buying GM stock.]]> Mon, 07 Jul 2008 03:19:34 -0400
Even though Toyota's sales are down because they lost their bet on SUVs by introducing gas-guzzlers like the Tundra at such an inopportune time, they still have a fuel-efficient lineup to fall back on. Ramping up production of their existing 30mpg+ lineup is just a matter of increasing capacity rather than having to design everything from the ground up.

GM had NO foresight to have "plan B" to fall back on unlike Toyota. And the "blow your socks off at mpg" Volt is merely an attempt at catch-up, seeing as how Toyota will be to market AT THE SAME TIME with its comparable plug-in Prius (2010).

Now GM are facing negative equity where they will owe more money than the value of the stock, which means the shareholders WILL be the first ones to be left without a chair to sit on when the music stops. Personally I think it's a foolhardy time to be playing musical chairs by buying GM stock.]]> http://seekingalpha.com/article/83648-valuing-gm-28-one-day-7-the-next?source=feed#comment-198957 198957
What GM and Ford need to do to make their cars competitive in the U.S. market is to make them MORE FUEL EFFICIENT. They are ALREADY price-competitve, seeing how there are $7000 worth of incentives for GM gas guzzlers like the Suburban, but sales for these gas guzzlers are still down.

Fuel efficiency is the key.]]> Sat, 05 Jul 2008 17:14:46 -0400
What GM and Ford need to do to make their cars competitive in the U.S. market is to make them MORE FUEL EFFICIENT. They are ALREADY price-competitve, seeing how there are $7000 worth of incentives for GM gas guzzlers like the Suburban, but sales for these gas guzzlers are still down.

Fuel efficiency is the key.]]> http://seekingalpha.com/article/83466-is-there-any-hope-for-the-big-three-auto-makers?source=feed#comment-198365 198365
Considering how the Fed handled the Bear Stearns crisis (arranged for JPMorgan Chase to buy them out), I think more likely Uncle Sam would probably try to arrange for some private equity firm to take over F or GM if they should fail, though I have a feeling a lot of private equity firms have looked at Cerberus's experience with Chrysler and would probably politely refuse. :-P

F does have a takeover candidate lined up though-- Kirk Kerkorian's Tracinda Corp. Uncle Sam would probably guarantee a loan for Kirk to take on the unsavory job of salvaging Ford's collapse if that does come to pass.

Don't know about GM..]]> Fri, 04 Jul 2008 01:33:39 -0400
Considering how the Fed handled the Bear Stearns crisis (arranged for JPMorgan Chase to buy them out), I think more likely Uncle Sam would probably try to arrange for some private equity firm to take over F or GM if they should fail, though I have a feeling a lot of private equity firms have looked at Cerberus's experience with Chrysler and would probably politely refuse. :-P

F does have a takeover candidate lined up though-- Kirk Kerkorian's Tracinda Corp. Uncle Sam would probably guarantee a loan for Kirk to take on the unsavory job of salvaging Ford's collapse if that does come to pass.

Don't know about GM..]]> http://seekingalpha.com/article/83648-valuing-gm-28-one-day-7-the-next?source=feed#comment-198361 198361
I have to disagree. The Caddy CTS, Malibu and Corvette might be nice cars, but GM is NOT going to be able to survive with a lineup like that, not in this day and age of $4 / gallon gasoline (heading up to $5 / gallon pretty soon).

The CTS and Corvette gets 20mpg combined highway/city. The Malibu gets 25mpg combined.

Meanwhile, Toyota has a lineup of cars that can get 30mpg combined or better (Corolla, Yaris, low-end Camry, Prius).

What GM needs to survive is put out a full lineup of cars that can get 30+ mpg COMBINED (not just highway), and we aren't seeing that. Hate to say it, but a Chapter 11 for GM seems more likely as each day passes.]]> Fri, 04 Jul 2008 01:06:21 -0400
I have to disagree. The Caddy CTS, Malibu and Corvette might be nice cars, but GM is NOT going to be able to survive with a lineup like that, not in this day and age of $4 / gallon gasoline (heading up to $5 / gallon pretty soon).

The CTS and Corvette gets 20mpg combined highway/city. The Malibu gets 25mpg combined.

Meanwhile, Toyota has a lineup of cars that can get 30mpg combined or better (Corolla, Yaris, low-end Camry, Prius).

What GM needs to survive is put out a full lineup of cars that can get 30+ mpg COMBINED (not just highway), and we aren't seeing that. Hate to say it, but a Chapter 11 for GM seems more likely as each day passes.]]>