GM - General Motors

[Guest 50centdollars]

I think its realistic that GM can earn $5/share in 2015. If you put a P/E of 10 on that, you get $50.

[jeffmori7]

I think its realistic that GM can earn $5/share in 2015. If you put a P/E of 10 on that, you get $50.

 

That is what I am thinking too!

[CorpRaider]

GM to Pay Record $35 Million Fine Over Handling of Recall

 

 

 

http://www.bloomberg.com/news/2014-05-16/gm-said-to-agree-to-u-s-fine-over-ignition-switch-recall.html

 

35M is not not substantial in today's world!

 

As I'm sure is common knowledge, that's only for failure to timely respond/inform NTSB and it is the max allowable fine.  Of course there are likely much bigger fines coming down the pike for substantive violations/offenses, not to mention the law suits.

[fareastwarriors]

GM to recall another 2.42 million vehicles

 

http://www.cnbc.com/id/101686708

 

 

General Motors said Tuesday it will recall another 2.42 million vehicles in the U.S., lifting the number of cars it has recalled so far in 2014 for more than 15 million.

 

The automaker also said it is doubling the charge it expects to take in the second quarter to about $400 million, mostly for recall-related repairs.

[moody202]

GM to Pay Record $35 Million Fine Over Handling of Recall

 

 

 

http://www.bloomberg.com/news/2014-05-16/gm-said-to-agree-to-u-s-fine-over-ignition-switch-recall.html

 

35M is not not substantial in today's world!

 

That's only for failure to timely respond/inform NTSB and it is the max allowable fine.  Of course there are likely much bigger fines coming down the pike for substantive violations/offenses, not to mention the law suits.

 

Agree. When I look at the sales numbers from past few months, it feels like the government is having a bigger reaction to the recalls than the consumer.  Not to mention, the ignition recall was all for old cars not ones being sold right now!

[nikhil25]

GM to recall another 2.42 million vehicles

 

http://www.cnbc.com/id/101686708

 

 

General Motors said Tuesday it will recall another 2.42 million vehicles in the U.S., lifting the number of cars it has recalled so far in 2014 for more than 15 million.

 

The automaker also said it is doubling the charge it expects to take in the second quarter to about $400 million, mostly for recall-related repairs.

 

And I thought it dropped ~4% because I bought a few commons this morning  :-\

[fareastwarriors]

Auto Bailout Leaders Reflect: ‘Battlefield Medicine Is Never Perfect’

 

 

http://blogs.wsj.com/corporate-intelligence/2014/05/21/bailout-leader-gm-recalls-reflect-company-living-on-the-brink-of-disaster/?mod=WSJBlog&mod=WSJ_corp_intel

[Steve]

 

http://www.bloomberg.com/news/2014-05-16/gm-recalls-bring-2014-total-to-record-11-2-million-in-may.html

 

 

greenlight closed out of GM..... and berkshire hathaway reduced position.

 

-Steve

[fareastwarriors]

Midsize Malibu Tops List of Most Recalled GM Cars

 

Cobalt May Have Notoriety, but a Malibu Has Most Number of Recalls

 

 

 

http://online.wsj.com/news/articles/SB10001424052702303749904579578431121982194?mod=WSJ_hp_LEFTTopStories&mg=reno64-wsj

[ERICOPOLY]

Midsize Malibu Tops List of Most Recalled GM Cars

 

Cobalt May Have Notoriety, but a Malibu Has Most Number of Recalls

 

 

 

http://online.wsj.com/news/articles/SB10001424052702303749904579578431121982194?mod=WSJ_hp_LEFTTopStories&mg=reno64-wsj

 

 

I remember when the ex-CEO of GM commented that Tesla would find out what it's like to produce a car.  It's interesting that Tesla found out how to make the highest rated one on their first time trying.  Whereas here GM is, nearly 100 years later, and they're making trucks that catch on fire when idling their engines:

 

http://www.freeinews.com/automotive-2/gm-recalls-trucks-for-fire-risks-from-excessive-idling-one-2014-silverado-owner-tells-a-different-story

 

 

[beerbaron]

Midsize Malibu Tops List of Most Recalled GM Cars

 

Cobalt May Have Notoriety, but a Malibu Has Most Number of Recalls

 

 

 

http://online.wsj.com/news/articles/SB10001424052702303749904579578431121982194?mod=WSJ_hp_LEFTTopStories&mg=reno64-wsj

 

 

I remember when the ex-CEO of GM commented that Tesla would find out what it's like to produce a car.  It's interesting that Tesla found out how to make the highest rated one on their first time trying.  Whereas here GM is, nearly 100 years later, and they're making trucks that catch on fire when idling their engines:

 

http://www.freeinews.com/automotive-2/gm-recalls-trucks-for-fire-risks-from-excessive-idling-one-2014-silverado-owner-tells-a-different-story

 

Tesla, no matter howgood they are will some day or another have a recall. It's a not a question of if it will happen but a when it will happen.

[JBird]

Midsize Malibu Tops List of Most Recalled GM Cars

 

Cobalt May Have Notoriety, but a Malibu Has Most Number of Recalls

 

 

 

http://online.wsj.com/news/articles/SB10001424052702303749904579578431121982194?mod=WSJ_hp_LEFTTopStories&mg=reno64-wsj

 

 

I remember when the ex-CEO of GM commented that Tesla would find out what it's like to produce a car.  It's interesting that Tesla found out how to make the highest rated one on their first time trying.  Whereas here GM is, nearly 100 years later, and they're making trucks that catch on fire when idling their engines:

 

http://www.freeinews.com/automotive-2/gm-recalls-trucks-for-fire-risks-from-excessive-idling-one-2014-silverado-owner-tells-a-different-story

 

Hahaha thanks for posting

[hardincap]

Kyle Bass is adjusting the market cap by $14bn to get the enterprise value:

 

Equity Value: 60bn

Enterprise Value: 46bn.

 

Can anyone tell me what the specific adjustments are to get to 46?

[ERICOPOLY]

Midsize Malibu Tops List of Most Recalled GM Cars

 

Cobalt May Have Notoriety, but a Malibu Has Most Number of Recalls

 

 

 

http://online.wsj.com/news/articles/SB10001424052702303749904579578431121982194?mod=WSJ_hp_LEFTTopStories&mg=reno64-wsj

 

 

I remember when the ex-CEO of GM commented that Tesla would find out what it's like to produce a car.  It's interesting that Tesla found out how to make the highest rated one on their first time trying.  Whereas here GM is, nearly 100 years later, and they're making trucks that catch on fire when idling their engines:

 

http://www.freeinews.com/automotive-2/gm-recalls-trucks-for-fire-risks-from-excessive-idling-one-2014-silverado-owner-tells-a-different-story

 

Tesla, no matter howgood they are will some day or another have a recall. It's a not a question of if it will happen but a when it will happen.

 

Keep in mind that the GM recall for idling engines only required a software fix.  Tesla does software updates all the time, without needing to recall the cars.

 

[bargainman]

Midsize Malibu Tops List of Most Recalled GM Cars

 

Cobalt May Have Notoriety, but a Malibu Has Most Number of Recalls

 

 

 

http://online.wsj.com/news/articles/SB10001424052702303749904579578431121982194?mod=WSJ_hp_LEFTTopStories&mg=reno64-wsj

 

 

I remember when the ex-CEO of GM commented that Tesla would find out what it's like to produce a car.  It's interesting that Tesla found out how to make the highest rated one on their first time trying.  Whereas here GM is, nearly 100 years later, and they're making trucks that catch on fire when idling their engines:

 

http://www.freeinews.com/automotive-2/gm-recalls-trucks-for-fire-risks-from-excessive-idling-one-2014-silverado-owner-tells-a-different-story

 

Tesla, no matter howgood they are will some day or another have a recall. It's a not a question of if it will happen but a when it will happen.

 

"Last week, when GM announced it was recalling 370,000 of their brand-new heavy duty pickups for a “software fix” to address fire concerns"

 

if they do it won't be because of a software update...  apparently they update their software over wireless..

 

http://www.wired.com/2013/11/tesla-responds-model-s-fires/

http://www.wired.com/2012/09/tesla-over-the-air/

 

 

[Liberty]

Tesla, no matter howgood they are will some day or another have a recall. It's a not a question of if it will happen but a when it will happen.

 

I don't think recalls are a problem. The problem is when companies should have recalled something dangerous and didn't, or do it too late or reluctantly, or aren't transparent enough about what's going on, etc. Or when a recall reveals a serious design flaw that erodes consumer trust in the safety of the rest of their vehicle ("if they missed that, what else did they miss? did the B team work on my car?").

 

So far Tesla has gone above and beyond on that front. After the media ruckus over a few cars catching fire after really severe accidents (something that is more likely in a gasoline-powered car because the gas tank is much more exposed and gasoline is more flammable, btw), Tesla concluded that its cars were safe, nobody was harmed either, etc. So no need for a recall, just a minor software update to change the ground clearance by raising the dynamic suspension a tad. But they still offered to install titanium armor plates and aluminum deflectors free of charge to anyone that wanted them to further reduce the already minimal risk. That's a good way to improve trust in the brand.

 

It's kind of like the old story that they always repeat about how JnJ recalled all Aspirins in the US after a couple bottles were found to be tampered with or something like that. There are ways to handle a crisis that makes you come out looking better than you did going in...

[ERICOPOLY]

I don't think recalls are a problem. The problem is when companies should have recalled something dangerous and didn't, or do it too late or reluctantly, or aren't transparent enough about what's going on, etc. Or when a recall reveals a serious design flaw that erodes consumer trust in the safety of the rest of their vehicle ("if they missed that, what else did they miss? did the B team work on my car?").

 

There is something wrong with the company culture at GM.  How good does this look?

 

 

The company urged employees not to say ‘this is a lawsuit waiting to happen.’

 

GM suggested engineers avoid ‘judgment words’ like ‘death trap,’ ‘grenade-like’

 

Read more: http://www.politico.com/story/2014/05/gm-death-trap-grenademaker-106787.html#ixzz32VPcAQtW

 

GM told engineers to avoid using dozens of words when communicating about vehicle problems that could potentially lead to recalls, including everything from “safety” to “Kevorkianesque.”

 

Here is an endearing term for their cars:  “rolling sarcophagus (tomb or coffin),”

 

I detect an air of frustration that the engineers feel like management won't let them fix the problems.  That's why they have these cynical names for their own product.  One theory is that they want to fix things, but the upper management won't let them (likely for fear of costs and publicity).

 

 

[fareastwarriors]

GM Sales Appear Resilient Amid Recalls, Dealers Optimistic

 

 

 

http://www.nytimes.com/reuters/2014/05/23/business/23reuters-gm-recall-dealers.html?src=busln&_r=0

[fareastwarriors]

G.M. to Recall Nearly 46,000 Cars in Australia and New Zealand

 

 

http://www.nytimes.com/2014/05/27/business/gm-to-recall-nearly-46000-cars-in-australia-and-new-zealand.html?src=busln&_r=0

[Guest hellsten]

I detect an air of frustration that the engineers feel like management won't let them fix the problems.  That's why they have these cynical names for their own product.  One theory is that they want to fix things, but the upper management won't let them (likely for fear of costs and publicity).

 

Reminds me of the Challenger disaster and Richard Feynman's role in the investigation:

http://en.wikipedia.org/wiki/Rogers_Commission_Report#Role_of_Richard_Feynman

 

he could not in good conscience recommend that such a deeply flawed organization as NASA should continue without a suspension of operations and a major overhaul

 

Management was living in a fantasy. Tesla = Science. GM = Politics.

[fareastwarriors]

An Increase in Recalls Goes Beyond Just G.M.

 

 

 

http://www.nytimes.com/2014/05/30/business/ford-recalls-1-1-million-suvs-because-of-faulty-power-steering.html?ref=business

[phil_Buffett]

http://www.reuters.com/article/2014/06/03/gm-brief-idUSS8N0N600G20140603

[fareastwarriors]

Inside New CEO Mary Barra's Urgent Mission To Fix GM

 

 

 

http://www.forbes.com/sites/joannmuller/2014/05/28/exclusive-inside-mary-barras-urgent-mission-to-fix-gm/

[fareastwarriors]

G.M. Inquiry Cites Years of Neglect Over Fatal Defect

 

 

 

 

http://www.nytimes.com/2014/06/06/business/gm-ignition-switch-internal-recall-investigation-report.html?src=me&_r=0

[fareastwarriors]

GM’s New Recalls Adds to Company’s Record-Breaking Tally

 

 

http://www.bloomberg.com/news/2014-06-06/gm-s-new-recalls-adds-to-company-s-record-breaking-tally.html