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Politics : PRESIDENT GEORGE W. BUSH
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To: nihil who wrote (16292)3/24/2000 8:24:00 AM
From: Zoltan!  Read Replies (1) of 769667
 
LOL. You are wrong of course.

If you bothered to read your own citation you would know that that study is about satisfaction with the sales department and the buying experience, not about automobile quality.

GM, by and large makes middling products and Saturn is one. Saturn is failing - if you hadn't noticed. It is doubtful that GM will ever recover its Saturn investment, much less make a return on it.

I predicted long ago that by 2000 GM would not be primarily an automobile manufacturer and would be better off exiting the business. That seems less bold now then it was 10 years ago because the market says in effect that the former has happened and that the latter would be wise.

As I indicated to Thurston Howell weeks ago and e-bill months ago, the real value in GM is not in autos but in Hughes/DirecTV. I believe more than three-fourths of the market value of General Motors is attributable to its Hughes stock alone. The core car business has a value of just over $20 a share, or a price/earnings ratio of barely 2.

If GM really wanted to boost its value it would exit auto making extirely and redeploy those relatively non-performing assets.

>>By the way, GM is a takeover target and you should hold as much of your wealth in GM as you can.

btw, News Corp's actions are designed to force GM to submit to SH pressure and sell Hughes. If News ever did succeed in getting GM they would dispose of everything automotive in short order.
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