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Technology Stocks : American Automobile Industry: Can it survive? -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (363)	2/16/2011 12:50:06 PM
From: TimF	Respond to of 431

GM's problems started well before GMAC's. In fact part of the reason they took the risks with GMAC was because of problems with their core business. The car company has reduced the franchises and models Yes it has, and that's a good step. I certainly wouldn't claim everything they are doing now, or even everything they did before was wrong. The volt is a halo car For now it is. It doesn't have sell much yet to be new and cool and exiting. IF and when oil ever does spike again - do not worry about the resale of VOLTS - they will spike. For a majority of drivers Volts won't make a lot of sense even with $10/gal (in 2011 dollars, I'm not talking about inflated prices) gasoline. That's even with the tax benefit. Remove that market distortion, or just ignore it to get more of a real price for the car, and it makes even less sense. They got bailed out by the government when their product could no longer be floorplanned due to a lack of credit availability A credit crunch was the last straw for the pre-bankruptcy company, it was far from all of their problems, they performed poorly for decades before that. As for distaste, my distaste is for the government intervention, not for GM as such.