Yesterday’s Wall Street Journal had possibly the most dire article I’ve ever read on a company’s viability. Unfortunately, the article wasn’t online, but here are some highlights: General Motors Corp. capped a dismal 2008 with a $9.6 billion loss in the fourth quarter, brining its loss for the year to $30.9 billion. … GM...
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GM: Zombie Car Company
Surprise! GM Wants Even More Money!
The Detroit Three (formerly the Big Three) groveled in front of Congress last month, asking for $25 billion to keep the doors open. Congress rebuffed them and sent them home with instructions to return with “a plan.” What do they come up with? A request that now clocks in at $34 billion. It has...
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Pigs Feeding at the Trough of Government Largesse
It was only a matter of time. Now that the Congress and US Treasury have decided that it is legitimate for the Federal Government to spend $700 billion “bailing out” various banks and financial companies, the line is getting longer of those holding their hands out for free money from heaven. First, we were...
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Have a Few Extra Dollars? Time to Short GM Stock.
Ford and General Motors release their earnings numbers this week. The important bits of information to look at are the cash flows. GM and Ford are rapidly burning through their cash reserves. GM Burned through $6.9 billion in cash during the third quarter of 2008 (that doesn’t include October, when things reallly got bad)....
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Make Michigan Attractive to Business Again
The stunning inability of Michigan’s politicians to talk about the 8,000 ton elephant in the room continues to amaze us here at GR Pundit. Michigan’s economy is suffering a “single-state” recession for one primary reason – the United Auto Workers union. Why? Michigan’s economy is/was so heavily dependent on the domestic auto industry that...
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Black October
There’s an excellent article on today’s Detroit News web site regarding the effect of Delphi’s Bankruptcy on the automotive industry and unions. One quote: “The domestic auto industry’s structure is not stable… And, simply put, we expect it will get worse before it gets better.” We’re seeing the beginning of a dramatic restructuring of...
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Michigan Ouch
Over the last month we’ve seen several events which will permanently shift the economic reality of Michigan. 1) Northwest Airline’s mechanics strike, which flopped and ended up in a busted union, had no consequence for NWA. This marks a major turning point for unions in Michigan – they have lost the organizational power and...
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