Perhaps there is someone out there who thinks highly of GM's current business strategy (is there anyone here?) but I certainly don't. The worst thing is that the leadership is very convinced that they are doing good things, so I wouldn't even expect them to ever admit their mistakes.
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The Chinese Auto Empire Coming to the U.S.
https://www.wsj.com/articles/the-chinese-auto-empire-coming-to-the-u-s-b3edd307
"Having made a splash with a Super Bowl ad, Polestar sold almost 10,000 Chinese-made cars in the U.S. last year, despite a 27.5% import duty. Starting next year, Polestars will be produced at Volvo’s Charleston factory to avoid the tariff. Lotus Tech and Zeekr also want to launch Chinese-built vehicles stateside. They too might find ways within the group to localize assembly."
We all knew this day was coming. Low cost Chinese cars will be big competition to the big 3 in the American market. Korean automakers have already taken a big bite out of U.S. market share. Hyundai Motor Group is #3 in sales in the U.S. auto market.
https://www.spglobal.com/mobility/en/research-analysis/hyundai-motor-group-rises-to-3-in-us-retail-new-vehicle-market.html
Great point about the stock buybacks!
GM Stock has been artificially propped up. How much would it be worth without the buybacks? $15/share?
Propping up the stock while purging dedicated workers is really sleazy.
It's hard to buy the Marxist "one team" jargon considering how dirty they do their employees, contracts and suppliers. The only team working together in unison is the board of directors and it's spokeswoman for it's own benefit!
Don't forget that share price is as high as it is because of billions of dollars of stock buybacks (yes, literally billions.)
GM bought back over $4 billion in 2017 and a matter of months later announced massive layoffs and plant closures, then engaged in fight with the UAW which lead to a lengthy strike.
GM announced increasing their planned stock buybacks to $5 billion at the end of 2022 and have spent almost $3 billion over the past year.
https://ycharts.com/companies/GM/stock_buyback
https://www.cbsnews.com/news/gm-bought-back-10-billion-in-stock-since-2015-double-what-job-cuts-will-save/
https://www.cnbc.com/2022/08/19/gm-to-reinstate-quarterly-dividend-ups-share-buybacks-to-5-billion.html
Back to the theme of GM's stock. You might find this interesting.
If you invested $1,000 in GM stock when Mary Barra was installed as CEO in 2009, how much would you have with compounding dividends over the 14 years?
Investing $1,000 in General Motors: Shares of General Motors opened for trading at $39.63 on the day Barra took over as the CEO of the company. Accounting for dividends paid over the years, the shares traded at an adjusted price of $30.15.
A $1,000 investment in the company at the time could have purchased 33.17 shares of GM stock. The investment would be worth $1,213.02 today, representing a return of 21.3%.
As an investor, I find this to be absolutely atrocious! $213 for a 14 year investment??? That's $15 a year, or $1.25 a month.
Here's another way to look at it. $1213 in today's dollars would buy you $852 of goods in 2009. Investing in GM when considering inflation is a significant net loss!
https://www.bls.gov/data/inflation_calculator.htm
Now to the tough part. Consider your own investment in General Motors. Your hard work and stress. All those years driving back and forth. Your years invested in GM. If earning (I'm just going to use some round numbers) $100,000 a year in 2023, that would buy you $70,000 in goods in 2009. If you make $150,000/year at GM, that would amount to $105,000 of goods in 2009. If you are salary, you get no pension. How much do you have saved? At this point, you might as well down vote this post because I'm sure this is hitting you pretty hard. You probably would have been better off delivering mail.
Article:
If You Invested $1,000 In General Motors Stock When Mary Barra Became CEO, Here's How Much You'd Have Today
https://www.benzinga.com/general/education/23/06/32798882/if-you-invested-1-000-in-general-motors-stock-when-mary-barra-became-ceo-heres-how-much-youd-ha
Apparently, you have nothing as expected.
"Call me a child and belittle my intelligence in every way you can think of..."
That's not even necessary. Some things are self-evident.
You never elaborated on why GM’s business strategy isn’t sufficient. Here’s your chance to shine. Do it.
Hedging their bet? Like a crack addict hedges their bet against sobriety with a few more rocks. Call me a child and belittle my intelligence in every way you can think of...your insults do not phase me. I know your not the superior being you are.
Most of us don't work at GM.
What do you think GM's current business strategy is and what is wrong with it?
From what I can see, the strategy is a full transition to electric vehicles:
https://news.gm.com/newsroom.html
Then there's the sneaky $1 billion+ investments in ICE truck/suv plants. Which means they are hedging their bet that Americans will adopt EV's.
Some data:
A poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago, finds that 41% of U.S. adults say they are “somewhat likely,” “very likely” or “extremely likely” to get an EV the next time they buy a car. Meanwhile, 47% of respondents indicate they are either “not too likely” or “not at all likely” to go electric for their next vehicle purchase. The remaining 12% of respondents say they have no plans to buy a car.
What does that tell you about GM's strategy? They have extensive market data.
PS Can we (GM employees) put a little bit of thought into our posts here? A little bit of critical thinking and some research goes a long way. The majority of the posts are replies are juvenile at best.
There’s nothing to this post. Elaborate on the business plan. What aspects do you disagree with? What would you do differently?
Are you a thinking adult???