GM will go DOWN
$2.00 on 2/24/09
$0.75 (-76.67% from time of market call)
$0.75 (-76.67%) on 6/02/09
Whatever GM or Ford, I think their main problem honestly is their employment system. Do you know why toyota, honda, those japanese motor company keep increasing their earning? Well, the first thing is their car is more suitable than GM or Ford. The most important things is their salary is and compension is lower than american motor company. Do you guys know that the ratio of the employee and the retire GM employee? It is 1:1, which mean while they are hiring a employee they have to pay the compensation to the retirement employee. Their salary is more expensive than the Japan Mortor company. GM and Ford have employee union! Those kind of problem let GM going bankrupt. In my opinion, even though the American help GM this time, it will be like throwing a money into a garbage. Yes, the government must invest money in GM, but they have to do several things.
1. The government have to talk to GM about what are their plan to save GM.
2. The government have to monitor they employee policy. They have to stop the employee union and the salary increasing ratio.
3. The government have the right to know the financial decision of GM made.