Tuesday, April 24, 2007

US sub-prime problems hit car sales says GM VP

US mortgage woes 'hit car firms'

Genaral Motors vice president Bob Lutz says that problems in the sub-prime market have hit car sales this month. His comments come at a time of record repossessions in the sub-prime. This sub-prime market may be an issue but I smell a rat and think Lutz is saying partly due to GM losing it position as the Worlds Number 1 car maker to Toyota.

Posted by denzil @ 09:03 AM (531 views)
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4 thoughts on “US sub-prime problems hit car sales says GM VP

  • Well this is how recessions start isn’t it?

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  • Yeah, GM losing the top spot has been on the cards for a while (at least three years). as ever there’ll be lots of hiding bad management in the down turn.

    oh and GM make crap cars so I don’t really care.

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  • You need look no further than Bob for that rat. GM has been propping up it’s ailing motor empire through GMAC, which happens to be one of the larger players in the subprime game.

    This could be GM’s subtle admission that the only way they’ve managed to sell cars recently is on the back of their subprime financing via GMAC. They’re now stuffed on three fronts. No one is buying their cars and they are exposed to both car HP defaults and mortgage defaults. Ouch!

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  • Good Quote:
    “There is no way this is going to play out without pain,” Norris said. “It’s already not OK. It just hasn’t hit the courthouse steps.”

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