General Motors (GM)

ohai's picture

Bull Case

-Talking about restructuring/downsizing unprofitable European business and renegotiating labor/pension agreements

-Average US car life is high: 10.1 years. So, people are likely to buy cars if the general economy gets better

-Impossible to go bankrupt, given US government support. US has incentive to promote pro-GM policies, as 1) elections mean politicians will pander to unions, and 2) US owns 26% stake and wants to sell. So, they have incentive to drive the stock price up.

Bear case

-Rival companies (like Hyundai) getting better

-UAW still has them by the balls, though not as bad as before


“America fares quite well when it comes to gender equality […] relative to the rest of the world.” -zidhai

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