Author Topic: GM - General Motors  (Read 663951 times)

Xerxes

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Re: GM - General Motors
« Reply #1790 on: September 09, 2020, 07:13:36 PM »
I understand there is view out there (ever getting stronger) that the clunky auto makers with their captive assets cannot turn around fast enough and that Musk is a genius that can do no wrong.

Mush is certainly a genius, not only a technical genius, but also a marketing/financial genius who was able to weaponized his fan base and  pretty much fund its growth by its ever lofty valuation. However, if Musk is the Bezos of the auto-industry, then there is bound to be a Walmart lurking around. To me that is GM and Volkswagen.

If Tesla is the cool looking Apple taking the world by storm, then perhaps GM and Volkswagen could be its Microsoft in the years 2011-2014, left for dead. Say what you want about M. Barra, but she has a hard job and she has an entire Tesla fan base set against her, but the investment she is doing could be the platform that her successor can build the company's growth.

I much prefer the capital allocation strategy to be geared fully into product development. I am a big fan buybacks, but only for companies that make so much that they cannot gave back to shareholder fast enough. And i am also happy that the dividend is fully cut. That is $2 billion per annum saved. The reality is that General Motors once upon a time was ran by the bean-counters for the bean-counters. It headed straight for Chapter 11. Not solely because of that but that was a factor.

The Nikola deal, she got 10% of equity with no cash outlay as an option play. I don't think that is bad.



Gregmal

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Re: GM - General Motors
« Reply #1791 on: September 14, 2020, 04:51:28 PM »
GM spokesman Jim Cain declined to elaborate on the type of diligence the automaker conducted other than to say it was a “thorough review of business, legal and technical matters.”

Spekulatius

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Re: GM - General Motors
« Reply #1792 on: September 14, 2020, 05:16:19 PM »
GM spokesman Jim Cain declined to elaborate on the type of diligence the automaker conducted other than to say it was a “thorough review of business, legal and technical matters.”

Translation : many lawyers and probably no engineers have done due diligence. I am constantly surprised (I am just a lowly engineering grunt, mind you) how little due diligence is done on a technical level even for large acquisitions.
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fareastwarriors

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Re: GM - General Motors
« Reply #1793 on: September 18, 2020, 04:28:01 PM »
The Incredible Shrinking GM: Mary Barra Bets That Smaller Is Better

The CEO streamlined a company that for decades reigned as the world’s largest auto maker. Now, she is readying for the next big bet: electric cars.

https://www.wsj.com/articles/the-incredible-shrinking-gm-mary-barra-finds-success-by-getting-smaller-11600438421?mod=hp_lead_pos7

arcube

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Re: GM - General Motors
« Reply #1794 on: September 18, 2020, 05:04:06 PM »
Thanks for sharing.

Another puff piece to save her skin. New strategy, new shrinking IBMsque style. Deer and the headlight issue. Now they want to sell battery tech to other companies.

Nothing is clear about their strategy. Nothing. She needs to be canned after the NKLA fiasco. Can’t believe she is running this company.

The Incredible Shrinking GM: Mary Barra Bets That Smaller Is Better

The CEO streamlined a company that for decades reigned as the world’s largest auto maker. Now, she is readying for the next big bet: electric cars.

https://www.wsj.com/articles/the-incredible-shrinking-gm-mary-barra-finds-success-by-getting-smaller-11600438421?mod=hp_lead_pos7

Gregmal

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Re: GM - General Motors
« Reply #1795 on: September 18, 2020, 05:08:03 PM »
Its funny because in respect to both your comment, and what Spek stated earlier, the pitch for Barra was that she was a GM lifer. A true engineer, who understood the company. Rather than a WS suit with an MBA...

Foreign Tuffett

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Re: GM - General Motors
« Reply #1796 on: September 19, 2020, 10:48:24 AM »
Agree that "puff piece" is a great description of the WSJ article.
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arcube

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Re: GM - General Motors
« Reply #1797 on: September 20, 2020, 09:22:22 PM »
Trevor out at NKLA. Time for Barra to be out too and a complete shake up at GM with some new DNA management team.

fareastwarriors

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Re: GM - General Motors
« Reply #1798 on: September 21, 2020, 12:26:15 AM »


Ex-GM Executive Moonlights as Matchmaker in Deal With Startup Nikola

Partnership came amid push to speed electrification goals

https://www.bloomberg.com/news/articles/2020-09-16/ex-gm-exec-moonlights-as-matchmaker-in-deal-with-startup-nikola?srnd=premium

Spekulatius

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Re: GM - General Motors
« Reply #1799 on: September 21, 2020, 04:03:41 AM »
Trevor out at NKLA. Time for Barra to be out too and a complete shake up at GM with some new DNA management team.

So much for due diligence. I agree heads need to roll.
Life is too short for cheap beer and wine.