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August 18, 2013 – Comments (6) | RELATED TICKERS: GM

Lot of history behind this brand.  My family were Pontiac and Buick folks for longer than most readers of this blog have been alive.  My own personal history has been a bit scattershot: still own my first car, a '65 GTO - as a collector car it's definitely affected by 'planned obsolence' built in at the factor.

And of course my own personal history with GM stock in the last decade, the only stock investment I've ever owned that went from the DJIA to zero on my watch.  (I'm still annoyed that the company even exists.  Equity got wiped out but the company didn't get liquidated.  Not how it's supposed to go down; a 'special intervention' was made by the government to help special rich people - with my tax dollar, yours too, citizen - but not me.)

Now GM is back and people are buying the stock again.  Berkshire Hathaway bought some of its stock.

I'd buy some too, but I've rented a few GM cars this year.  They're *terrible.*  I wouldn't want to own one.  They're cheap-feeling inside, they drive bad, you can't see out of them, and the competition has them beat on most of these factors.  (The motors and powertrain are pretty good, zippy and decent fuel economy, so they got that going for them.)  The Corvette I drove maybe isn't cheap feeling inside, and the powertrain is better than 'pretty good', but it's really hard to see out of and it's not a major driver of sales numbers for the company so I'm going to ignore it for the moment.

I can't see buying an auto company that makes crummy cars no matter what the stock price says.  (Even if I would buy GM stock again, which I won't because I feel like I got slapped in the face by rich people the last time I did.)

Thoughts, Fools™?  

6 Comments – Post Your Own

#1) On August 18, 2013 at 4:08 PM, jonrode (< 20) wrote:

This analysis of GM is clouded by an emotional reaction to past events, events that are not very relevant to the future of the company.  Measured by companies like JD Powers, GM has made a lot of progress - their current value proposition is a pretty good car at a reasonable price.  I own a GM Acadia and am happy with what I got for the price I paid.  They are certainly selling a lot of cars.

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#2) On August 18, 2013 at 10:19 PM, HarryCarysGhost (99.76) wrote:

 the only stock investment I've ever owned that went from the DJIA to zero on my watch.

Really man?

It was pretty obvious that GM was going down, just by paying attention.

(I don't short stocks, but that was tops on my list )

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#3) On August 18, 2013 at 10:21 PM, valunvesthere (21.57) wrote:

My families first, second, or third cars has been American cars when American cars were at its height! Yes, remember the Detroit hey days? Example: My dad's first car was a Ford Galaxy in the 60's, second was a Dodge D series truck in the 70's (with a self custom made box), third was a Pontiac Safari in the 80's (full size family station wagon), fourth was a 80's Buick Century purchased from another family member and driven in the 90's temporarily, and at present his fifth is a Pontiac Montana purchased in the early 2000's (full size family van). I will not write about his and ours experiences with the car, truck, and van/wagon he's ever own, because every and every other people may have differ experiences.

To get to the point about the Detroit Big Three (Chrysler,Ford, and General Motors) off of my head based on facts, being unbiased, and I have no financial interest in any of the the above Detroit Big Three is:

3) Ford has consistently produced without having absent years muscle car, truck , and van for decades with the Mustang, F-Series, and E-Series/Econoline while Chrysler and General Motors can not claim for themselves.

2) Ford has won the 24 Hours of LeMans consistently in 1966, 1967, 1968, and 1969 with some all Ford top three finishes while Chrysler and General Motors has not and at present working on it with Chrysler entering Dodge Vipers and General Motors entering Corvettes.

1) Ford did not ask for or receive a huge tax payer bailout during the Automotive Industry Crisis Between 2008 - 2010 while Chrysler and General Motors did.

Finally, all in all the Detroit Big Three products has improved in design, fuel efficiency, and quality. Some say it is much too late to catch up to European and Japanese competitors but if you want equal or near design, fuel efficiency, and quality at a lower price the Detroit Big Three products are worth a look.

 

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#4) On August 19, 2013 at 2:12 AM, awallejr (82.72) wrote:

Valu I agree.  I bought a Nissan and have regretted it ever since. Yes cost less, but for a reason. Quality sucks. I will be buying GM next.

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#5) On August 19, 2013 at 3:09 AM, valunvesthere (21.57) wrote:

awallejr

It is the norm as auto manufacturers are not as competing with each other as they use to. Now a days we see more joint ventures and cloning it all started during the 80's when Japanese dominated American, European, and Korean(now a days invents its own and at times partners with Americans or Europeans) auto industry. Some examples are:

Chrysler and Mitsubishi

Colt/Mirage

Daytona (Later years were equipped with Mitsubishi V6 engines)

2000/Gallant

Laser and Talon/Eclipse

Stealth/3000GT

Ford and Mazda

Escort/323

Probe/MX6

Ranger/B series

General Motors and Suzuki

Firefly/Swift

Tracker and Sunfire/Sidekick

 

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#6) On August 19, 2013 at 3:09 AM, ikkyu2 (99.38) wrote:

This isn't a stock analysis, by the way.  I know better than to try to invest in something when I have strong feelings about it.  I'm pretty disgusted with GM's history all told.

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