uncle bubba

December Car Sales: Gruesome

GM still out sold all other auto makers in 2008. We are very gald our elected officials saw the light and helped GM with financing when the credit dried up. GM was not the only auto manufacturer to be helped by it's own country. Still the largest and selling the most. Hard to equate that to the statements published here about no one wanting GM cars and trucks. The facts don't jive with Seeking Alpha's spin. Sorry guys. You're just idiots I guess. But keep pushing the rising sun, maybe you can retire in Japan in a large 400 sq ft flat in the homeland.

What Does GMAC's Bond Exchange Failure Mean for Detroit?

I understand some people looking at the glass half empty and enjoy making a living selling short on bad news, but I prefer to see the glass half full and congradulate GMAC on becoming a bank holding company with access to the TARP funds. They will actually use the money as congress intended and put the funds back into the economy. It was the governments intent to infuse capital to loosen the credit and start the economy. Unfortunaley the banks chose to sit on the money and shore up the balance sheet without helping the economy at all. As much as Seeking Alpha wanted and has predicted the demise of GM you might as well set your sites elsewhere. The treasury has spoken and GM is here to stay. You'll have to short someone else now.

GMAC: Happy to Lend You Some of Your Own Money

One last thought, with the government using the TARP funds to help GM this program may do what it was intended to do. The economy is slow due in large part to people not buying, not putting dollars through the system. If Joe six pack buys a car, the dealer profits, the manufacturer profits. Those profits are paid to employes who in turn spend at the local resturant and stores and the economy starts working its magic as the dollars turn. This seems to me to achieve the ends envisioned by the congress as opposed to the banks who have held on to their funds to make the balance sheet look better without putting the money into the economy.

GMAC: Happy to Lend You Some of Your Own Money

The help is the stability of GM and keeping GMAC out of bankruptcy which could have pulled GM down further. The fact is credit is and has always been availible to anyone with decent credit. GMAC went to cutting off approvals at anything below a 700 credit score because they did not have the funds to lend. They now can and will look at credit down to a 621 credit score. This is still much higher than in the past, persons with scores as low as 480 had sources for financing with high rates. Credit now is generally unavailible to persons below 600. Credit has tighten but not for the majority of the country. The news made it sound that even with good credit auto loans were hard to get or unavailible. This news helps GM from the standpoint of changing that perception. It is amazing that people with very limited understanding of the financial workings in general are given space to write about things they don't understand.

GMAC's Bad Medicine: Rates Were Never the Problem

One last thought, with the government using the TARP funds to help GM this program may do what it was intended to do. The economy is slow due in large part to people not buying, not putting dollars through the system. If Joe six pack buys a car, the dealer profits, the manufacturer profits. Those profits are paid to employes who in turn spend at the local resturant and stores and the economy starts working its magic as the dollars turn. This seems to me to achieve the ends envisioned by the congress as opposed to the banks who have held on to their funds to make the balance sheet look better without putting the money into the economy.

GMAC's Bad Medicine: Rates Were Never the Problem

The help is the stability of GM and keeping GMAC out of bankruptcy which could have pulled GM down further. The fact is credit is and has always been availible to anyone with decent credit. GMAC went to cutting off approvals at anything below a 700 credit score because they did not have the funds to lend. They now can and will look at credit down to a 621 credit score. This is still much higher than in the past, persons with scores as low as 480 had sources for financing with high rates. Credit now is generally unavailible to persons below 600. Credit has tighten but not for the majority of the country. The news made it sound that even with good credit auto loans were hard to get or unavailible. This news helps GM from the standpoint of changing that perception. It is amazing that people with very limited understanding of the financial workings in general are given space to write about things they don't understand.

GMAC: Why the Bond-Exchange Silence?

This article and speculation written at 10:15 am, at 11:05 anounced over the wires they have completed and are approved as a bank holding company. I never had a doubt, and I knew this morning at 7:30am when I saw a GMAC commercial for the FDIC insured bank offering savings accounts that they had all in place. Your gossip a little behinf the curve, would be nice to have info ahead of the curve.

Playing the Auto Bailout With Yields as High as 45%

Debt restructure aims for 33 cents on the dollar, or in the case of XGM. $25.00 face, would reduce price to $8.25 per bond which currently trades for $3.29 per bond, thats 250% return to those who gambled at 3.29. plus the balance of the original share cost in new equity shares, which wipes out the current equity holders. Plus the ex-dividend date is 12/29 and those who gambled at 3.29 will receive a dividend in January of aprrox 55% return on the original investment. Gambling, yes, high return if you win, you bet. The guy who thought it was only 30% return doesn't understand this bond and where it will go if they survive.

U.S. Auto Brands Receive Higher Ratings Than Their Japanese Counterparts

Everyone seems mute when any good news or positive feedback on domestic autos is printed. I guess the facts don't support some peoples preconcieved stereotypes, but I knew better all along. Happy Thanksgiving

Bail Out Capitalism, Not Detroit

Let's crucify out of jealousy the poor american auto worker for making a decent wage. We need our manual labor folks to understand they should be working for $10.00 an hour and shame on GM for having given American workers a decent living wage for 100 years. The same workers who take that money and drive this great economy of ours by buying homes and TV's and sending their kids to college. Let's pull them back to the third world standards they deserve for such low brow work. This company is looking for a loan, no handouts, to be paid back with interest, because the gov'nment has killed the credit makets and the economy for the next 6 to 12 months. You are so worried about the tax payers, we give more cash to third world dictatorships with no payback for purely political reasons. Give them the loan and get out of the way and they will be fine. Arm chair quarter backs with an ax to grind, you ake my backside hurt.

Bail Out Capitalism, Not Detroit

Competitors at an unfair advantage, are you kidding? You're worried more about foriegn auto makers than the workers in the US. That statement alone speaks volumes as to where your spin is coming from. As if imports with cheap labor haven't hurt the domestics. What an ass.

Bail Out Capitalism, Not Detroit

To those who oppose to Auto Industry Bail out;


In a perfect world of Capitalism only the strong survive and business takes care of itself. But those are not the ground rules we have been playing under. The government has controlled and mismanaged the credit markets with the introduction of the Community Reinvestment Act and followed it up with deregulating and miss managing Fannie Mae and Freddie Mac to the point that our credit system almost collapsed.
Add to that the deregulation of the futures market that allowed oil to hit $147.00 per barrel and started a consumer driver recession. It is the governments fault, they caused the problem and they should stand good to fix it. Gm has been in a restructure program for the last several years that should reach a majority of it’s goals by 2010. I’m talking about moving the legacy cost of the retirees to the UAW, which with other cuts and changes would drastically improve Gm’s underlying cost
per vehicle. Some say that GM built gas guzzler SUV’s and trucks that the public didn’t want, but that was untrue, an out right lie. They were built due to demand for such vehicles, look at your local Toyota lot and see the number of full size V-8 trucks and SUV’s. Toyota saw the demand and was trying to tap into that large market. It was $4.00 a gallon gas that killed it in less than a month and no company can change
production over in less than 6 months and retool especially with the availability of loans gone. The government subsidized these large vehicles with large tax credits for business owners and drove the demand even higher. Another government mess up. We pay more to other countries in the form of aid to help with our security. Those opposed to helping out our manufacturing base survive the mess ups of the government should ask themselves who will build the tanks and planes the next time we need them. It makes me sick to my stomach to see supposedly grown men and women play these political games and argue over the fate of millions of worker’s future when they caused the problem to begin with. It’s time for our elected officials to get off their, he said she said, politically driven backsides, accept the responsibility that they know is their’s and fix this short term problem.

GM: The Bailout vs. Bankruptcy Meme

To those who oppose to Auto Industry Bail out;


In a perfect world of Capitalism only the strong survive and business takes care of itself. But those are not the ground rules we have been playing under. The government has controlled and mismanaged the credit markets with the introduction of the Community Reinvestment Act and followed it up with deregulating and miss managing Fannie Mae and Freddie Mac to the point that our credit system almost collapsed.
Add to that the deregulation of the futures market that allowed oil to hit $147.00 per barrel and started a consumer driver recession. It is the governments fault, they caused the problem and they should stand good to fix it. Gm has been in a restructure program for the last several years that should reach a majority of it’s goals by 2010. I’m talking about moving the legacy cost of the retirees to the UAW, which with other cuts and changes would drastically improve Gm’s underlying cost
per vehicle. Some say that GM built gas guzzler SUV’s and trucks that the public didn’t want, but that was untrue, an out right lie. They were built due to demand for such vehicles, look at your local Toyota lot and see the number of full size V-8 trucks and SUV’s. Toyota saw the demand and was trying to tap into that large market.
It was $4.00 a gallon gas that killed it in less than a month and no company can change production over in less than 6 months and retool especially with the availability of loans gone. Another government screw up. We pay more to other countries in the form of aid to help with our security. Those opposed to helping out our manufacturing base
survive the screw ups of the government should ask themselves who will build the tanks and planes the next time we need them. It makes me sick to my stomach to see supposedly grown men and women play these political games and argue over the fate of millions of workers future when they caused the problem to begin with. It’s time for our elected officials to get off their he said she said politically driven backsides, accept the responsibility that they know is their’s and fix this short term problem. For the rest of you generating an income off of the volatile market ups and downs and enjoy profiting from a company crashing, get a real job and contribute to society and quit being the vultures you have become.

Mitch Mayberry

Do the Automakers Deserve a Bail Out?

An open letter to Congress,


I am writing in hopes of gaining your support for the American auto
industry in general and General Motors specifically. I would appreciate your
efforts in helping our industry with a bridge loan to help through this credit
crisis. I have put together some facts and thoughts that could be useful in
your decision making process. Right now the financial analyst have down
graded GM’s corporate rating to less than junk. Just 6 months ago this was
not the case. It’s a problem that feeds on itself. If GM can secure capital to
fund operations through 2009 they should be in a position to ride out the
current recession and auto sales should rebound back and cash flow would be in
the positive again. Some people say GM doesn’t build cars that people want
and that is just not true, up until this year GM was the largest auto manufacturer
in the world and sold the most vehicles, so that argument doesn’t hold water.
Also in 2010 GM has set up to move the retirement load from its books to
the UAW which will make GM’s overhead per car in line with other manufacturers.
The talk on the street is how uncompetitive GM is but if they can hold on until
2010 this will not be the case. What GM needs is a government backed loan for
operating capital to get through the next year, just like we did for Chrysler, and
when the business turns, as it will, then the loans are paid back with interest and
GM remains a private enterprise, just like Chrysler did. Once a plan is in place
and the financial analysts see that GM has a plan and sales come back with the cash
flow then the corporate investment rating will improve and the credit crisis should be
over and GM will take advantage of the private sector once again as it always has done.
There are some who say we should let private business live or die on their own but I disagree with this. We have become more and more a service based economy
and if we lose the auto manufactures we will have lost our manufacturing backbone.
If circumstances were to present themselves as they did during World War II and we
no longer owned or controlled a manufacturing base we may be reliant upon another
country for tanks and planes and that would not be a good position to be in. Plus up to
3,000,000 jobs are connected to the auto industry, mine being one of them, and this could
drive unemployment past 10% and increase and prolong the recession if GM were to go
under today. Our economy is based on consumer confidence and consumer spending. We need the leadership of this country to back GM, give people the confidence that everything is going to be all right and believe or not, it will.

Sincerely

Mitch Mayberry
Van Matre Buick Pontiac GMC Cadillac
Sales Mgr. and Business Mgr.

GM: Bailout or Bankruptcy?

An open letter to Congress,


I am writing in hopes of gaining your support for the American auto
industry in general and General Motors specifically. I would appreciate your
efforts in helping our industry with a bridge loan to help through this credit
crisis. I have put together some facts and thoughts that could be useful in
your decision making process. Right now the financial analyst have down
graded GM’s corporate rating to less than junk. Just 6 months ago this was
not the case. It’s a problem that feeds on itself. If GM can secure capital to
fund operations through 2009 they should be in a position to ride out the
current recession and auto sales should rebound back and cash flow would be in
the positive again. Some people say GM doesn’t build cars that people want
and that is just not true, up until this year GM was the largest auto manufacturer
in the world and sold the most vehicles, so that argument doesn’t hold water.
Also in 2010 GM has set up to move the retirement load from its books to
the UAW which will make GM’s overhead per car in line with other manufacturers.
The talk on the street is how uncompetitive GM is but if they can hold on until
2010 this will not be the case. What GM needs is a government backed loan for
operating capital to get through the next year, just like we did for Chrysler, and
when the business turns, as it will, then the loans are paid back with interest and
GM remains a private enterprise, just like Chrysler did. Once a plan is in place
and the financial analysts see that GM has a plan and sales come back with the cash
flow then the corporate investment rating will improve and the credit crisis should be
over and GM will take advantage of the private sector once again as it always has done.
There are some who say we should let private business live or die on their own but I disagree with this. We have become more and more a service based economy
and if we lose the auto manufactures we will have lost our manufacturing backbone.
If circumstances were to present themselves as they did during World War II and we
no longer owned or controlled a manufacturing base we may be reliant upon another
country for tanks and planes and that would not be a good position to be in. Plus up to
3,000,000 jobs are connected to the auto industry, mine being one of them, and this could
drive unemployment past 10% and increase and prolong the recession if GM were to go
under today. Our economy is based on consumer confidence and consumer spending. We need the leadership of this country to back GM, give people the confidence that everything is going to be all right and believe or not, it will.

Sincerely

Mitch Mayberry
Van Matre Buick Pontiac GMC Cadillac
Sales Mgr. and Business Mgr.