Business

GM has problems…time and again
by Barbora Misakova

Well I think, that I will start to believe, that economy is a field where you can always (!) talk about some changes. I never understood why are stock brokers watching those numbers so attentively and why some of their reactions sometimes reminds reaction of frighten chickens (everybody shocked, running from one side to another thinking “WHAT TO DO NOW?!”) Now I know! It’s their job. Every single move of all those important numbers is monitored, because even if most of us cannot understand it clearly, the truth is, that one little change, one single move can dramatically change the whole situation in economy. And sometimes it can cause serious problems even in the world’s most profitable companies. Let’s look at General Motors for example. Every one probably knows that GM is one of the world’s largest automobile manufacturers. What is more this year the company celebrates its 100th anniversary! But as history and also today’s crisis show problem could appear also in companies like this one!
I have already mentioned several times that GM had some problems with their production and sales. And the situation (as you can see) didn’t approve at all. And I think that in connection with today’s economic crisis there is no surprise, that every single company (from oil sellers, through automobile producers to banks) has some kind of problem. So what’s going on now? Well GM’s shares got on their lowest level in almost 60 years. Fortunately (or unfortunately?) automotive market is weakening in global. GM’s sales of Opel and Vauxhall brands fell more than 6 percent in Europe but this downturn hit economies around the world. Analyst for Burnham Securities – Dave Healy thinks that the best what can every automaker do is to conserve its liquidity and focus on the most important model changes. Just to make it clear – at Thursday General Motor’s capitalization was down 81 percent (from $14.1 to $2.7 billion!) at the start of this year. Their financial situation is even worse than some of its parts suppliers such as Magna International Inc. or Toyota Motor Corp.!


related story: http://news.yahoo.com/s/ap/20081009/ap_on_bi_ge/auto_stocks;_ylt=AgZuEbIdFhSiwKuzdNah4Ois0NUE

by Barbora Misakova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 4:35 AM