Big news that the media has ignored.
Yesterday, GM held a "Capital Markets Day" event, where Mary,Reuss and others all came to NYC to host Wall Street analysts.
Here some items to highlight:
*Mary Barra stated guidance of low 17 million U.S. SAAR for 2019.....basically no downturn in New Vehicle sales. That pop the stock from IPO territory.
*Mary tried to downplay the weakness in China's economic growth & spending , but GM's Chief Financial Officer undercut that narrative by forecasting a 25% decline in GM's Chinese Joint-Ventures income for 2019.
*Gave the some old "Autonoumus is the future" story.
*Mark Reuss claimed future GM's ICE development will be around Trucks & SUV's.
*Reuss claimed Cadillac will be the leader in Luxury again...like we haven't heard that before.
*Reuss finally realize future GM's electric technology should debut in Cadillac's.
*Reuss tried to play Wall Street as a bunch of Suckers by straight up lying by stating the reaction to the Silverado HD photos as "highly positive"
and cited 400 people asking was the Silverado HD available.
*Reuss stated only 30,000 of the redesign Silverado, Sierra where sold during Q4 2018, but the first full month where the redsign become the majority of inventory is February meaning the overwhelming majority of GM's Q4 Truck sales where clearing out the outgoing Silverado & Sierra.
*Reuss showed a preview of New Escalade for the audience.
*Reuss claimed Hybird's have no future despite GM being unsuccessfully in commercializing Electrics so far.
*When taking a question from the Bank Of America analyst about how well the trucks stack up to RAM and F-Series, Reuss had trouble saying Fiat Chrysler, or RAM of all things, he stated "Chrysler Truck offering", "FCA", " Whatever its called" and chuckled...SIGH
Okay now from the real big news....that went under the rader.
In Mary's opening remarks, she stated GM is generating significant operating losses in Brazil & Argentina due to challeneging environment with negative currency volatility . Mary stated the company is considering "Alternative actions" for South America if they can't reach outcomes with labor & other stakeholders also saying "We are not going to keep deploying capital to lose money".
In GM's infamous announcement they did hightlight the factor of closing two international plants in 2019. I suppose that's the two international plant locations (Brazil & Argentina). However that assumes labor would agree to those plant closures.
But "Alternative actions" that are either a full pullout (like Mary have done all around the world in other new vehicle markets), or a Manufacturing pullout (ala Holden) would be a huge benefit to FCA taking out its biggest competitor while the others (VW,Hyundai-Kia,Ford) are struggling. In most South America countries FCA and GM(Chevrolet) are either first or second place, and with GM being out of the picture FCA can grow significantly more in South America region as long as no more "Hugo Chavez" clones don't pop up to take power.
Long term, GM pulling out of Brazil & others is real stupid action being consider by Mary Barra given the long term pontential of Brazil, and one day the Brazil buyer will want upmarket brands & items which is a perfect long-term opportunity for Alfa Romeo.
GM can't be taken away from Marry Barra,Mark Reuss, Dan Annman FAST ENOUGH to save jobs & make Shreholders some return for their investment let alone becoming a "super-regional" Automaker (no claim of being "Global" company) .
General Motors to Host an Investor Event | General Motors Company
Yesterday, GM held a "Capital Markets Day" event, where Mary,Reuss and others all came to NYC to host Wall Street analysts.
Here some items to highlight:
*Mary Barra stated guidance of low 17 million U.S. SAAR for 2019.....basically no downturn in New Vehicle sales. That pop the stock from IPO territory.
*Mary tried to downplay the weakness in China's economic growth & spending , but GM's Chief Financial Officer undercut that narrative by forecasting a 25% decline in GM's Chinese Joint-Ventures income for 2019.
*Gave the some old "Autonoumus is the future" story.
*Mark Reuss claimed future GM's ICE development will be around Trucks & SUV's.
*Reuss claimed Cadillac will be the leader in Luxury again...like we haven't heard that before.
*Reuss finally realize future GM's electric technology should debut in Cadillac's.
*Reuss tried to play Wall Street as a bunch of Suckers by straight up lying by stating the reaction to the Silverado HD photos as "highly positive"
and cited 400 people asking was the Silverado HD available.*Reuss stated only 30,000 of the redesign Silverado, Sierra where sold during Q4 2018, but the first full month where the redsign become the majority of inventory is February meaning the overwhelming majority of GM's Q4 Truck sales where clearing out the outgoing Silverado & Sierra.
*Reuss showed a preview of New Escalade for the audience.
*Reuss claimed Hybird's have no future despite GM being unsuccessfully in commercializing Electrics so far.
*When taking a question from the Bank Of America analyst about how well the trucks stack up to RAM and F-Series, Reuss had trouble saying Fiat Chrysler, or RAM of all things, he stated "Chrysler Truck offering", "FCA", " Whatever its called" and chuckled...SIGH
Okay now from the real big news....that went under the rader.
In Mary's opening remarks, she stated GM is generating significant operating losses in Brazil & Argentina due to challeneging environment with negative currency volatility . Mary stated the company is considering "Alternative actions" for South America if they can't reach outcomes with labor & other stakeholders also saying "We are not going to keep deploying capital to lose money".
In GM's infamous announcement they did hightlight the factor of closing two international plants in 2019. I suppose that's the two international plant locations (Brazil & Argentina). However that assumes labor would agree to those plant closures.
But "Alternative actions" that are either a full pullout (like Mary have done all around the world in other new vehicle markets), or a Manufacturing pullout (ala Holden) would be a huge benefit to FCA taking out its biggest competitor while the others (VW,Hyundai-Kia,Ford) are struggling. In most South America countries FCA and GM(Chevrolet) are either first or second place, and with GM being out of the picture FCA can grow significantly more in South America region as long as no more "Hugo Chavez" clones don't pop up to take power.
Long term, GM pulling out of Brazil & others is real stupid action being consider by Mary Barra given the long term pontential of Brazil, and one day the Brazil buyer will want upmarket brands & items which is a perfect long-term opportunity for Alfa Romeo.
GM can't be taken away from Marry Barra,Mark Reuss, Dan Annman FAST ENOUGH to save jobs & make Shreholders some return for their investment let alone becoming a "super-regional" Automaker (no claim of being "Global" company) .
General Motors to Host an Investor Event | General Motors Company
Last edited:
