A study by auto industry research group CNW Research found that 22 percent of new-car shoppers expect General Motors to consider bankruptcy again — nearly three and a half years after GM’s 2009 bankruptcy. As for (partial) cross-town rivals, only 8 percent believed that Chrysler will file for bankruptcy again — down 34 percent from two years ago. The government sold its remaining six percent stake in the automaker (read: Fiat subsidiary) over the summer, with Treasury estimates placing cost of the bailout at $1.3 billion.
The U.S. Treasury still owns $26.5 percent of GM stock, with some new car shoppers refusing to buy a GM product so long as the government remains an owner in the automaker. In some circles, GM still carries the derisive Government Motors nickname.
The GM Authority Take
It’s obvious that the fine ladies and gentlemen who participated in the CNW poll/study that produced these results are woefully misinformed, since the New GM is a rather healthy company — both financially and product-wise, as well. And given that the New GM turns around its ailing European operations while fortifying its balance sheet, it will only get healthier with time. In other words, nothing seems to be stopping people’s opinions from diverging greatly with reality.
Perhaps more folks should read GM Authority more often… in which case we ask that you tell everyone you know about GM Authority.
Comments
It does not surprise me, I am big GM fan I know they are a better company now but most snobby foreign car owners will always laugh out of ignorance, I drive a Final 500 Oldsmobile Alero, I will be keeping it until It dies and then I will buy a Nice Buick, or Chevrolet.
Just so sad that up till today there are still people with ignorance
Here’s the thing–most customers don’t know s**t, especially when it comes to car companies themselves. Customers are like gullible babies and they will hold on to the last piece of information they heard like religion. If they want to miss out on a great portfolio of car products because they believe that “Government Motors” nonsense, then so be it. This is just another classic example of the fact that the most prevalent information on a given topic is usually circulated by the misinformed masses.
Maybe they should read GM Authority more often : P
Yes, of course more people should read GM Authority! However, as we say in marketing- perception is the reality, whether something is true or not. GM has a problem with this, but Obama won’t sell his stake because the taxpayer will lose $15 Billion. That’s a mighty big “Dr. Evil” number. http://news.yahoo.com/u-treasury-resists-gm-plan-government-stake-sale-061312511–sector.html
Either way, GM should aggressively negotiate a payback plan to rid itself of Governmnet ownership.
Also, keep minding the business – like looking at the possibility of saying bye-bye to GMC? Mostly a redundant division, it is already represented with Chevy, Buick and Cadillac modes. Tight focus for best results.
The ignorance of my fellow Americans never seems to baffle me
dont forget gm go bankrupt ford to and dodge…..
Though the “fine ladies and gentlemen” may indeed me “malformed”, I think what you meant to say was “misinformed”. 🙂 Though misinformation could lead to a malformed opinion of GM. LOL
Good call. Fixed her up 🙂
I currently own 2 GM products. A Yukon and an SRX. The Yukon is an ’08 and the SRX is an “04. I also own a ’57 Chevy post coup and a ’61 Impala SS 4-speed 348 rag top.
All my GM products are for sale at the rite price.
I am so pissed off at Obama for the Chavez style takeover of GM that I will NEVER buy another GM product.
“There is a FORD in my future”
The reason that GM will not go under again, in the near future anyway, is how they treat their dealership, especially when it comes to paying warranty claims. They have slashed the number of hours they pay for all warranty work. Example, an overhalul of the 5.3 Silverado V8 engine may take (and I don’t have the exact flatrate) 17 hours to R and R and rebuild. However, that is what the customer pays. GM will pay the dealer, and the tech that did the work, 8 hours. Most dealers simply take the money and only pay the tech the 8 hours, even though ite has taken the full 17 hours to complete the work. That costs the tech nearly $200 for one job. And you wonder how GM can offer 100,000 mile drivetrain warranty.
OH….
I forgot to include in my opinion the give away of GM stock to the UAW
SCREW the bond holders and the shareholders.
Obama’s actions negated 150 years of bankruptcy law.
For me, I have three Gm vehicles with a 50 year difference between the newest and the oldest and love them all. Michael is right though, perception is the reality to those who are thinking it. Without presenting other information, those thoughts will remain. I have never really been comfortable with that whole buyout situation but it is what it is now. Can’t undo it. Hopefully it will get resolved sooner rather than later so we can focus on what is really important, …. (fill in what you think is really important. =)
Bet most of them are repubs who also believe Obama is a muslim
Friends, that just indicates that it is time to buy GM shares at the incredibly low price of $23, given that each share earns about $4 in profits every year. Where else can you get 20% profits. And that includes the cost of GM Europe’s miserable performance which will improve down the road. Let others be ignorant, while we appreciate the value that GM offers. My Camaro Z28 is almost 18 years old, and next year it is time for one of those nice new Cadillac ATS.
Let the ignorant be, those in the know buy GM.