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To: Proud_Infidel who wrote (67408)3/18/2005 5:20:22 PM
From: Amy J  Read Replies (1) | Respond to of 77400
 
GM's bonds tanked by 10%. They were expecting a break-even but had a $1.50/share loss. Ouch.

So now any equity that's capital intensive is under question too, apparently.

Don't recall exactly, but believe at some point GM was only earning 1/3 from their auto sells while the majority was thru their finance division.

Never understood why they ignored fuel efficient cars either. OTOH when one drives through the middle of the country and rural areas, am always amazed to see the super huge cars/trucks/SUVs, so maybe they are responding to the middle.

Like you, I sure hope they have something sleek and efficient in the pipeline!

Regards,
Amy J



To: Proud_Infidel who wrote (67408)3/18/2005 8:25:12 PM
From: RetiredNow  Read Replies (1) | Respond to of 77400
 
I had read somewhere that the Big 3 U.S. automakers are putting most of their eggs in the fuel cell basket, saying that they are going to leapfrog the Japanese. However, the Japanese companies are saying that hybrids are a bridging technology that will get consumers ready for fuel cells when the time comes and that it will be a couple decades before fuel cells are ready. So it looks to me as if the U.S. automakers have bet too much on the future, while ignoring current demand, which is allowing the Japanese automakers to eat their lunch in the hybrid space.

The downside to the consumer is that demand is far outpacing supply and that combined with the lack of widespread hybrid competition is keeping hybrid prices high.