"GM has announced closing Oshawa plant where Cruze is made"
Wow - comments like this are from cockroaches who don't even know where the product is actually built...
"Cash was high right after the bailout.
After this fiasco is over with, not so much."
Not an informed statement RDH. Cash means nothing except in the context of other assets. This is particularly true of trying to compare cash to just after the bankruptcy. No one sits on cash. The cash received during the bailout was converted to other assets needed to run the business. Since the bankruptcy, the difference between assets and liabilities (known as stockholders equity) has grown significantly. The inconvenient truth for you is that GM has made good progress financially, and I can prove it.
This issue could cost GM billions and have no effect on cash whatsoever. There are many ways to generate cash when needed, sell marketable securities, exercise the credit line, sell tangible assets, etc.
Cash on hand will not be a good measure of the cost to GM. Keep you eye on stockholders equity for a truer picture, now and compared to 2009.
In November 2007, the agency reviewed the request to open an investigation into non-deployment of airbags in 2003-2006 Cobalts and Ions. A PowerPoint presentation prepared by the NHTSA said its review was prompted by 29 complaints, four fatal crashes and 14 field reports. “During a briefing with Committee staff, ODI officials explained that the panel did not identify any discernible trend and decided not to pursue a more formal investigation,” the committee said.
The design was for the GM in the pass. The new GM is more nimble and shed a lot of bureaucracy, more focus in design and service delivery. As a customer, I like the GM now than before a lot more. Just go the show room, you can see its updated, a lot more pleasant experience than before. I can atest that the quality of car has improved, customer service has improved, product has improved, labor costs went down, time to market is faster, more reusable platform, less union baggage. Most importantly, the people are buying car again, China is buying car in double digit growth, Europe is growing again. The tailwinds are all there, the recall is transitory and buy GM stock while it is cheapt. Tell me a manufacturer does not have recall. The new GM is not responsible for any misses in the old GM. The bottom was form and it's rebounding nicely and surely. My target is $52-54.
Sentiment: Strong Buy