Interesting stuff. I'm not much of an auto guy, and I get most of my auto info from 2 sources: ad revenue trends and info from the ad agency (my industry) and my buddy from Ford.
I dunno about GM, but I think their best days are behind them (sorry if I pressed your buttons).
I'll readily admit that some of their purchases are good (Daewoo, etc.) and position the corporation for continuing operations. But as a manufacturer, I haven't heard alot of good things, and I haven't seen much to be impressed with.
That pile of cash is indeed impressive. But...it's kind've the same situation GE is in. They have both, basically, morphed into financial operations as their primary earnings source (though NBC, oddly, won out last year...something that scares the hell out of me for GE).
That said, financial operations will continue to struggle to be profit centers under the current economic environment.
I'm not pro-Ford or anti-GM. Basically, I'm anti-mature manufacturing/financial conglomerate. Good business to be in, long term, because people will always buy cars, but it's becoming more and more a commodity business.
As for ad revenue trends...GM is struggling. Badly. Piles of cash, to be sure, but they have negotiated the best rates over the years. Their problem now is that nobody wants it. It's too cheap. I can replace GM dollars at twice the price with either an auto competitor, or 5 people from another industry.
GM's gotta either pay the freight or find other outlets to improve its image and continue brand awareness.
JMHO...BTW, I own an Explorer and it's the best car I've ever owned (those were some frivolous lawsuits IMHO...but I did get 4 new tires out of the deal when I was getting ready to replace them). Then again, my mom owned an Escort and it was the worst car I ever drove.
I've owned Toyota, Acura, GM, Ford, Renault over the years. Can't say that any impressed me, except Acura. Damn good car. Reliable. Lasted 15 years with minimal maintenance...and still going (soon to pass 200k miles). |
