GM's Credit Downgraded to Junk Status

[ckhagman]

Another reply from a different GM Financial question...

Personally I do not think it is a reason not to buy there products but more of a reason to do
so. The big three is gone even though everyone else thinks there are still
3 big auto companies in the US. Part of the problem in my mind is no matter
what GM does they always, always get slammed by the media. Lincoln brought
out the blackwood and Cadillac gets the EXT but they said too little too
late and then killed them in sales and still got no credit. The media
bashes the GMC Denali line saying why would you pay that much extra for the
same car, but not once have I ever read about the media bashing fords Eddie
Bauer line and it IS the same thing.

Much of GM's problem lie within the health care costs. Wagoneer said a
couple of weeks ago that he joined GM 28 years ago for his love of cars and
trucks but didn't realize that he would go on to become a health care
administrator. The healthcare costs are there big problem and probable the
fact that they have 2 many dealerships competing against each other, but the
health care remains the biggest problem.

Cadillac and HUMMER are there strongest brands but again the media does not
give them credit where it is due. The H3 will get 20 mpg. Compare that to
all the other SUV's in its class. The H3 was built on a modified frame
smaller than a GMC Envoy but is much bigger in size (based on pictures I've
seen) but yet get 5 more mpg than the Envoy. The media doesn't care until
we are all driving the same car.

I read within the past month that GM has $24-$26 billion in the bank from
last year. I do not know how this goes under reported but I did read it.
The author goes on to say GM needs to look towards acquisitions which the
read targets as Toyota or Honda. Some might think this is impossible but
anyone is for sale or willing to merge given the right price. Toyota and GM
are already partners on a couple of products so this is not taken out of the
air. I personally believe they should go after what they have been eyeing
for so long. BMW. Go in and take them. 1 person owns (actually 1 family)
the majority and given the figure of a couple billion in the bank it can go
a long way on a company not worth that much (BMW).

Chris