We have been completely amazed at how fast rumor mills start in the auto industry. It centers around the basic idea, that good news are hard to come by. Unfortunately for GM and Chrysler, there has been no shortage of bad news as of late.
Chrysler’s sales are down a staggering 35% month to month from last year, GM has hit record low’s in stock value on the market, only to be bested by Ford, which probably has a chance to be traded on the penny stock lists soon.
One has to take a step back and see what is going on here. Crain was very quick to point fingers at Chrysler when it dipped into it’s $2 billion credit line, however not so quick to study the contractual agreement between Daimler and Cerberus outlining the takeover details of Chrysler. It seems every time someone sneezes in Detroit, warning bells sound and the stock gets downgraded. I certainly hope neither Wagoner or Nardelli come down with the flu, as that could plummet stock prices with the slogan “GM/Chrysler CEO’s on med leave as a result of sagging sales.” The bandwagon jumpers should take a step back, realize that the
whole economy is going through a rough patch and chill out. We know it’s happening, no need to tell us 30 different ways.
For the record I don’t own any stock in neither GM, Ford or Chrysler. However I am sick and tired of the media sending the stock market on a downward trend, because of lack of analytical assessment done on their part. I choose to vent my frustration, as I believe the oil market as well is based on similar sag stories as this.
In other news, Porsche is one step closer to buying VW. Can’t wait till I can drive the latest Jetta with a 911 Turbo transplant.
One can only hope…
