What will ultimately happen to GM and Ford and why do Americans prefer foreign cars?

Really, what's going to happen to them -- takeover by a Japanese auto maker or maybe a joint venture? They're struggling and there's just no way they can sustain themselves for much longer. The Japanese auto makers seem to be way ahead in terms of reliability, design, fuel efficiency, environmental considerations etc. Can GM and Ford really survive or are they doomed to a Darwinian death?|||Do not buy their stock. GM just got downgraded today by the bond rating agencies that evaluate their debt, and they are teetering on the edge. If the government steps in to bail out GM, shareholder equity gets WIPED OUT (i.e. their stock becomes worthless)-- Just like what happened to Fannie Mae, Freddie Mac and AIG shares a couple weeks ago when the government bailed them out.





And if the government doesn't bail them out and GM declares Chapter 11, the creditors (bondholders) get first dibs, not the shareholder. The shareholder is left holding the bag either way.





Right now GM has a 15% short interest-- 15% of all of its issued stocks have been shorted (people betting that the company will fail).





The same thing is happening to Ford-- It's trading at $2 a share right now while the debt Ford owes per share is $50.





(hitting the Cramer sound effect buttons) Sell sell sell, sell sell sell, don't buy don't buy. The house of pain.|||GM and Ford have not adapted quickly enough to the ever changing taste of the American market. Whoever is running GM(Rick Wagoner) and Ford(Alan Mulally) simply do not care about their respective brands and only care to make as much money as possible. A couple of years ago, gas was cheap and GM and Ford were selling trucks/SUV's like hotcakes. Instead of spending R%26amp;D money on smaller more fuel efficient cars, they sat back and reaped the rewards of doing nothing. Fast forward to the present, and expensive gas, and GM and Ford have been caught off guard. Ford and GM have to evolve, and evolve quickly if they want to survive. Ford is currently working on Turbo 4's and V6's to replace their gas guzzling V8's, and everyone's heard of the Chevy Volt. Ford does make wonderful cars in Europe that they choose not to sell here. Like the Ford Mondeo, Euro Ford Focus, and others. I think the Current Ford Mondeo would sell alot better than their Ford Fusion here in America, it's a stunning car.


http://p.webwombat.com.au/motoring/image鈥?/a>|||only in the US is Ford lagging. in Europe, it's got some of the better prodcuts available.





why do americans prefer foreign cars? reliability and ride. the japanese are just that much better right now.





and no, they won't die. the US Gov won't allow it, much as was done in the early 80's with Chrysler when they went bankrupt the first time.|||Americans prefer foreign cars because they work. I prefer older American cars cause they look cool, but they are always breaking down. GM and Ford will never go out of business, because they do well in European markets, and still manage to profit in the U.S.|||They prefer Foreign because they are cheaper to maintain and own than some American cars and they have much better quality and design and reliability.|||if you want to support them, buy their stock. It's at a 50 year low and you stand to make a lot of money when the market recovers..