GM's Woes

[62_Kiwi]

I've just been reading about the trouble that GM is having with it's relationship with Fiat. Apparently (as a hangover from a past investment deal) Fiat holds a "Put" option that could force GM to buy the remaining 90% of it's shares (for US$4.5B) - the shares that GM doesn't already own...<br /><br />GM obviously doesn't want to do this - it's got enough problems of it's own, without buying those of Fiat (which is in debt to the tune of US$10.6B).<br /><br /> http://wardsauto.com/ar/auto_gm_fiat_prepare/ <br /><br />I hope they get through all this without too much carnage. I think this is where we start to see the down-side of the car companies all merging together...

 

[dolluper]

Re: GM's Woes

It's a business thing your sales drop you buy another company hopeing to increase your sales therefore keeping your shareholders happy hummmm. Lots of that going on these days 'everybody trying to get that high all mighty market share could brake some of them thou!!!!

 

[62_Kiwi]

Re: GM's Woes

Too true Dolluper...the promise of more sales can also lead to a path of bigger losses <br /><br />Ford's been having it's own problems with it's Jaguar business. It's just paid out over 600 million pounds to keep Jag afloat...the previous year it was 260 million pounds. <br /><br />I hope they stick with Jaguar - my personal favourite cars. I can't imagine a world without Jags...<br /><br /> http://uk.biz.yahoo.com/050104/241/f9nx2.html

 

[dolluper]

Re: GM's Woes

Some of the old Jag's had GM parts now Ford who next any bids from China maybe

 

[jtexas]

Re: GM's Woes

Growth by acquisition can mask a flawed business model for a time but the bubble will burst eventually. just ask MCI worldcom.

 

[TilliamWe]

Re: GM's Woes

"Growth by acquisition can mask a flawed business model for a time but the bubble will burst eventually. just ask MCI worldcom.<br />"<br /><br />Or OMC! Is Brunswick next?

 

[roscoe]

Re: GM's Woes

What am I missing?<br />What does OMC have to do with Brunswich?

 

[TilliamWe]

Re: GM's Woes

What am I missing?<br />What does OMC have to do with Brunswich?

You're missing the point of:

Growth by acquisition can mask a flawed business model for a time but the bubble will burst eventually. just ask MCI worldcom.

OMC acquired a bunch of boat builders, and it helped to eventually kill them.<br />Now Brunswick owns many builders & looks to acquire more, and make Mercruiser (and Mercury) exclusive power.<br /><br />That is why I asked if they were next.