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

Anyone?

“Be aware of this 40 year old men in our country.They suffer from mid life crisis and are always trying to be in the good books of young girls.” -Rahul Roy

Subscribe toComments for "General Motors (GM)"