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Gm Selloff

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GM agrees $14bn finance arm deal

General Motors has announced it is to sell a majority stake in its highly profitable financing business to a hedge fund-led group for $14bn (£8bn).

The struggling car giant had been in talks with Cerberus Capital Management about selling GMAC - which made a $2.8bn profit in 2005 - for weeks.

GM is trying to raise money to shore up its finances, which have been hurt by weak sales and large pension costs.

It also faces huge liabilities from bankrupt car parts firm Delphi.

http://news.bbc.co.uk/1/hi/business/4872498.stm

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GM agrees $14bn finance arm deal

General Motors has announced it is to sell a majority stake in its highly profitable financing business to a hedge fund-led group for $14bn (£8bn).

The struggling car giant had been in talks with Cerberus Capital Management about selling GMAC - which made a $2.8bn profit in 2005 - for weeks.

GM is trying to raise money to shore up its finances, which have been hurt by weak sales and large pension costs.

It also faces huge liabilities from bankrupt car parts firm Delphi.

http://news.bbc.co.uk/1/hi/business/4872498.stm

Companies like GM, Ford etc.. their days are numbered.

They are far to big and cannot change quickly enough for an electronic marketplace and an informed customer. Friends who work with them say they are badly managed and are driven on pure 'hoo-haa' and f*ck all else; Its all high fives, marketing bu11sh1t and dodgy product.

Their pension 'liabilities' are nothing more than their failure to invest workers funds properly.

Besides the US doesnt 'do' heavy industry anymore - just massive fraud and the odd war.

BUT the US has the useful Chapter 11 - where a bankrupt company can just pretend its not bankrupt - ignoring its liabilities - and continue. Just like WorldCom did and the US government did itself in the 1970's.

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GM are fooling themselves if they think the sale of GMAC will save them. 90% of their profits was generated by GMAC and a $14 billion injection of cash will do nothing to overcome their major problems: $400billion debts, crap products Americans don't want to buy and crushing pension liabilities.

You'll find the stats here: mindboggling stuff

http://www.housepricecrash.co.uk/forum/ind...topic=26248&hl=

Edited by Baz63

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this just staves off the day when they go to the wall.

i will email dubya and suggest that when it goes bust, the US government invests say $20 bn and they get the Phoenix 4 ( from MG Rover) to run the new business until the cash runs out

Edited by the don

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this just staves off the day when they go to the wall.

i will email dubya and suggest that when it goes bust, the US government invests say $20 bn and they get the Phoenix 4 ( from MG Rover) to run the new business until the cash runs out

Hmmmm.... I forgot about them. I wonder if GB will call them in as advisors when the time comes...

:unsure:

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GM are definetly finished, what this is realy about is getting rid of the profittable parts while they can, thus it realy should be looked at closely who is buying them, could be directors cash doing it.So when GM goes but theve already stripped it of any profittable assets.These assets then will not be subjected to being sold off to pay debts and thus getting no gain from them at all.

Its a smart move by a company in crisis, its practically a phoenix

I think its realy worth looking into who is grabbing these assets, also they were prob sold off dirt cheap with the excuse they needed to find a buyer fast.

this money wont even cover gm loses for 4 months, watch as other profittable parts are disposed off.ie real estate next or the franchised car retailer networks ect.

at which point when there aint a thing left to sell the comnpany will go belly up.

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Toyota will soon be the largest auto-manufacturer in the World. It has taken them about 30 years to take down the once mighty Ford-GM.

GM and Ford failed to see the demise of SUVs and could never match Japanese/German quality. Same reason that the UK car industry died--living in the past.

With the Japs about to hike IR they will have accomplished what they set out to do in 1941--but this time through more legitimate means!

Makes you wonder how an emerging backwater like the UK can continue to boast the world's highest house prices doesn't it?

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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