Can GM get on track and attract new investors?

Hopes for a really quick buck on GM stock has faded along with a huge sales month in February. Rising gas prices may fuel the General into bringing back big incentives to move those trucks and SUV’s.

From AutoNews.com:

DETROIT (Bloomberg) — The new General Motors made its Wall Street debut with much fanfare last November. The initial public offering that was supposed to max out at about $10 billion ended up raising more than double that amount.

CEO Dan Akerson had a good story to tell: The Detroit automaker had posted a $4.8 billion profit for the nine months ended Sept. 30, and new models like the Chevrolet Equinox and Cadillac SRX SUV were selling well. Two weeks after the IPO, GM was worth just $1.6 billion less than Ford Motor Co., and by mid-January the stock ran up 20 percent, to almost $40 a share, giving GM a value of $59.3 billion.

GM’s feel-good moment didn’t last. Since the beginning of January the stock has fallen more than 18 percent, to close Friday at $30.24 a share, which is $2.76 below its IPO price. GM’s market valuation now trails Ford’s by almost $8 billion. Analysts fret about the churn in GM’s management ranks, the aggressive use of incentives to sell its cars, ongoing losses in Europe, and a softening in the Chinese market, where GM is the leader.

Read the entire article.

  

Ford vs. GM

The Ford vs. GM battle is going strong even after 100 years!

From CNN.com:

FORTUNE — It’s the mother of all corporate rivalries, bigger than Coke vs. Pepsi, older than Nike vs. Reebok, and more compelling than Pampers vs. Huggies. It’s fought with billion-dollar budgets for new models and marketing, and it is subject to more ups and downs than the stock market.

While it may be temporarily overshadowed by the troubles of Japanese auto makers, and imperiled long-term by the rise in oil prices, one constant remains in Detroit: General Motors vs. Ford. The two companies have been battling it out for profits, market share, and hometown bragging rights almost from the time GM (GM) was founded in Flint, Michigan in 1908, five years after Ford (F, Fortune 500) got started in the Detroit suburb of Dearborn.

Keeping score means watching three major indicators: annual profit, market capitalization, and U.S. market share — both retail share to private customers and overall share that includes fleet buyers.

Read the full article.

  

GM Owns February 2011 with a 46% Gain!

The General came in big last month with a whopping 46% gain compared to February 2010. We’ll be watching to see if GM can keep up the pace or if another leader will rise in 2011.

From Detroit News:

February marked the strongest U.S. car and truck sales pace since August 2009, according to figures compiled by AutoData Corp.

Should the pace keep up, the year’s sales would total 13.4 million.

The Detroit Three automakers today all reported double-digit sales gains in February from a year ago, led by General Motors Co.’s healthy 46 percent gain.

GM totaled 207,028 cars and trucks sold under the Cadillac, GMC, Chevrolet and Buick brands and fared much better than crosstown rival Chrysler Group LLC, which reported a 13 percent increase in its February sales at 95,102 vehicles.

Read the full article.

  

A Closer Look at GM’s Chapter 11 Restructuring

The GM you knew last year, at the core of the auto-industry meltdown doesn’t exist anymore. In it’s place is a much more trim and nimble GM that is poised for success. Today, with the help of our friends from the CarInsurance Blog we take a look at GM, before and after its restructuring.

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Has Chevy dropped the ball with the Cruze?

GM has its new Chevrolet Cruze rolling off the assembly line and before you see the first commercial they might have dropped the ball. They have the sedan heading to dealer lots in the U.S. but where is the five door hatchback? AutoNews has pointed this out and I totally agree for a few reasons. First, you have a hatchback going on sale in other markets across the globe so why not sell it here? Your competitors in the likes of Ford Focus, Ford Fiesta, Mazda 2, Nissan Versa and many others are selling well. Secondly, GM is touting the Cruze as one of its most important launches for the survival of this company and they don’t give customers a choice with a hatchback? I can’t see Mulally, Ghosn or Marchionne leaving a big hole in the center of a huge launch like this? Could you?

I also feel the look of the hatchback takes the Cruze further away from looking like a reduced Malibu and with that it stands on its own more. Let’s hope that the sedan sells well but even with solid sales let’s pray that the suits at Chevrolet wake up and get the hatchback here in the U.S. in showrooms asap. The Cruze might be the best small car that GM has built but that doesn’t mean customers considering a Fiesta, Corolla or Civic will think it’s one of the best to choose from in a very competitive field.

  

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