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Discussion Starter · #1 ·
Yesterday, I had an interesting talk with someone who works at a GMC dealership. He said several things that got my attention. One, is that sales are way down across the board and you will see salespeople laid off as well as other employees at the dealerships across the country. This of course assumes that the economy and the stock market keep going down. Also, several big dealerships may have to close their doors. During a meeting at the dealership he works at there was talk of GM planning to offer huge rebates and other incentives on virtually all makes and models they sell, including the Acadia. It would make the GMS pricing look high in comparison. He said GM has no choice because they need to move inventory. He said no official date was given as to when this might occur, but they thought it would be sometime before spring of next year. He said GM is preparing for the storm that is coming which is the stock market going even farther down, the worst Christmas in retail history, and many people losing their jobs. He said GM is really scared as to what may happen in the coming months and they are getting ready for it. He said to wait and not buy any GM vehicle and see if this really happens. You will save big if you do. He also said that it is likely that if GM follows through with this, other car makers may follow suit. We'll see. I thought I would pass this on for what it is worth.
 

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Maybe LBrown can get her Carbon Black Acadia afterall. :)
 

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I agree with the concept, but I don't think that the financial markets need to get any worse than they already are for there to be large [negative] impacts on new car sales. The news is saying that Sept. sales were down, and I'm sure that the combination of people being concerned for their jobs & finances, coupled with many fewer people qualifying for car loans - is enough to put the big "stall" on new car sales. Thus, the pressure for more incentives exist today.

Time will tell,

Smooth[/color] <><
 

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Hmmmm......


;)
 

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Discussion Starter · #5 ·
Just noticed that GM stock is taking a big hit today. Down 17%. Was down as much as 21%. Don't get me wrong, I don't want to see GM go down just so we can all buy an Acadia real cheap. I wish the best for GM and everyone else. We are all in the same boat, and unfortunately it is sinking.
 

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skyhawk said:
Just noticed that GM stock is taking a big hit today. Down 17%. Was down as much as 21%. Don't get me wrong, I don't want to see GM go down just so we can all buy an Acadia real cheap. I wish the best for GM and everyone else. We are all in the same boat, and unfortunately it is sinking.
WOW, this may increase some incentives.
http://news.aol.com/article/dow-cro...w/202993?icid=100214839x1211231470x1200678817

NEW YORK (Oct. 9) - Stocks plunged in the final hour of trading Thursday, sending the Dow Jones industrial average down more than 675 points, or more than 7 percent, to its lowest level in five years after a major credit ratings agency said it was considering cutting its rating on General Motors Corp.
The Standard & Poor's 500 index also fell more than 7 percent.
The declines came on the anniversary of the closing highs of the Dow and the S&P. The Dow has lost 5,585 points, or 39 percent, since closing at 14,198 a year ago. The S&P 500, meanwhile, is off 655 points, or 42 percent, since recording its high of 1,565.15.
Thursday's sell-off came as Standard & Poor's Ratings Services put GM and its finance affiliate GMAC LLC under review to see if its rating should be cut. GM has been struggling with weak car sales in North America.
The action means there is a 50 percent chance that S&P will lower GM's and GMAC's ratings in the next three months.
S&P also put Ford Motor Co. on credit watch negative. The ratings agency said that GM and Ford have adequate liquidity now, but that could change in 2009.
GM led the Dow lower, falling $2.15, or 31 percent, to $4.76, while Ford fell 58 cents, or 22 percent, to $2.08.
"The story is getting to be like that movie 'Groundhog Day'," said Arthur Hogan, chief market analyst at Jefferies & Co. He pointed to the still-frozen credit markets, and Libor, the bank-to-bank lending rate that remains stubbornly high despite the Fed's recent rate cut.
"Until that starts coming down, you'll be hard-pressed to find anyone getting excited about stocks," Hogan said. "Everything we're seeing is historic. The problem is historic, the solutions are historic, and unfortunately, the sell-off is historic. It's not the kind of history you want to be making."
According to preliminary calculations, the Dow fell 678.91, or 7.3 percent, to 8,579.19. The blue chips hadn't closed below the 9,000 level since the June 30, 2003.
Broader stock indicators also tumbled. The Standard & Poor's 500 index fell 75.02, or 7.6 percent, to 909.92, while the Nasdaq composite index fell 95.21, or 5.47 percent, to 1,645.12.
The Russell 2000 index of smaller companies fell 47.37, or 8.67 percent, to 499.20.
A wave of fear about the economy sent stocks lower late in the final two hours of trading after a volatile start to a day in which major indicators like the Dow and the S&P 500 index bobbed up and down. The Nasdaq, with a bevy of tech stocks, spent much of the session higher but eventually as the sell-off intensified. Still, its losses were less severe because of the relatively modest drops in names like Intel Corp. and Microsoft Corp.
On the New York Stock Exchange, declining issues came to nearly 3,000, while fewer than 250 advanced.
The sluggishness in the credit markets that triggered much of the heavy selling in markets around the world since mid-September appeared little changed Thursday following days of efforts by the Federal Reserve and other central banks to resuscitate lending.
Libor, the bank lending benchmark, for three-month dollar loans rose to 4.75 percent from 4.52 percent on Wednesday. That signals that banks remain hesitant to make loans for fear they won't be paid back.
The Fed and other leading central banks this week lowered key interest rates to help unclog the credit markets and promote lending to help the global economy. While a rate cut can take up to a year to work its way through the economy, the move was aimed as a boost to investor sentiment.
"We're stuck in a morass and I think it's going to take quite some time to come out of it," said Stephen Carl, principal and head of equity trading at The Williams Capital Group.
Demand remained high for short-term Treasurys, a refuge for investors willing to trade modest returns to protect their money. The yield on the three-month Treasury bill, which moves opposite its price, fell to 0.51 percent from 0.63 percent late Wednesday. Longer-term debt prices fell, with the yield on the 10-year note rising to 3.77 percent from 3.65 percent late Wednesday.
Investors across markets were mulling a plan being considered by the Bush administration to invest in hobbled U.S. banks as a way to stabilize the financial sector. The $700 billion rescue package signed into law last week allows the Treasury Department to inject fresh capital into financial institutions and obtain ownership shares in return.
Britain rolled out a similar plan, though no U.K. bank has received any investments. In Iceland, the government now has control of the country's three major banks as it struggles to contain the troubles there.
Wall Street is also looking for any effects of short selling now that a three-week ban imposed by regulators has expired. Short selling is a technique in which investors borrow shares in a company from a broker and sell them, hoping to buy them back later at a lower price. Essentially, it's a bet that a stock's price will fall. Short sellers can lose money if they have to repurchase the stock after it has risen.
Some analysts believe the unprecedented ban on short selling - an effort to bolster investor confidence - did more harm than good at a time of historic market volatility. They contend that short sellers help the market rally by covering their bets and creating demand for stocks.
"I think the market's way oversold. But I can't stand in the way of this falling knife - I'd get sliced open," said Phil Orlando, chief equity market strategist at Federated Investors. "Investors are just saying, get me out at any price."
He also said that with the short-selling rule back in play, hedge funds might be shorting again to make up for their forced liquidations.
Volume on the NYSE came to 2.04 billion shares.
In Asia, Japan's Nikkei 225 closed down 0.50 percent while the Hang Seng added 3.31 percent. In Europe, Britain's FTSE-100 fell 1.21 percent, Germany's DAX fell 2.53 percent, and France's CAC-40 declined 1.55 percent.
Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
2008-10-07 07:39:51
 

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Discussion Starter · #7 ·
As some of you know by now, GM stock took a hit of about 31%. It's stock is trading at a low not seen since 1950. It's hard to believe that GM might go under. But then, when you think about some of the cars they have built over the years with poor quality, then it is not hard to believe.
 

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I don't want to add to the gloom & doom, but as I pointed out some time ago when we were shopping, the GM vehicles were priced a lot higher than the competition (in my case the Dodge Journey). In the top model to model example (SLT2 vs RT), similarly equipped it was a gap of over $8K or roughly $40K for the Acadia vs $32K for the Dodge. I know the Acadia is larger and has more features, but when you look at the percentages ($8K is 25% of $32K), does it really add up to 25% more vehicle? If the Dodge had a better AC unit I probably wouldn't be here.

If the cost to build/bring to market is that much higher, I can see why GM is in financial trouble.

Seeing the GM stock under $5 blew me away- it was like $13 last month wasn't it? That's over a 62% decline in a month.
 

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Some recent post from Don Willems come to mind

http://www.acadiaforum.net/forum/index.php?topic=4024.msg52100#msg52100

http://www.acadiaforum.net/forum/index.php?topic=4659.0

http://www.acadiaforum.net/forum/index.php?topic=4674.msg58059#msg58059

If more people could start buying products made here, maybe there wouldnt' be such an issue.

I remember seeing a post here some time ago, but I can't find it right now. If I remember correctly, It talked about how GM's negotiations with their employees had them paying some pretty high $. I think it said that until those terms agreed upon expire here (in 2010 I think it said) that GM's profits will be low, and that is another reason why the vehicles are more expensive then other brands. Once the terms are up, then the profits will go up also.

It almost seems like GM is the little mom and pop shop trying to make it in the big bad world of Chain Stores. They are doing some great things for their employees, but it is not enough to keep up with the competition and economy.

I hope this changes SOON!
 

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Discussion Starter · #10 ·
GM stock holding its own today. Trading above $5.00 a share. Dow taking another huge hit. Panic sell off is taking effect. I read some of this is due to people wanting to get out before the election. Too much uncertainty as too what might happen after that. Also read that it is being reported in some areas of the country, banks are experiencing above average account withdrawals by depositors. People are getting scared and taking their money out. I hope this doesn't snowball. It has all the signs though.
 

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Mass idiocy at it's finest. The only way to guarantee you will lose money is to pull it out while you are at a loss. If people don't realize an adjustable rate mortgage can go up, they can't be counted on to understand investing.

Same thing, different year.
 

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I agree Blue. I'm trying to figure out how I can buy more!! :)
 

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GAR said:
I agree Blue. I'm trying to figure out how I can buy more!! :)
Exactly!!!!

I bought GMC over Honda to do my part. I sure hope they turn it around sooner than later.
 

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Blue_2009_SLT2 said:
Mass idiocy at it's finest. The only way to guarantee you will lose money is to pull it out while you are at a loss. If people don't realize an adjustable rate mortgage can go up, they can't be counted on to understand investing.

Same thing, different year.
Agreed. One of my superintendents came in the office yesterday wanting to pull all the money out of the mutual funds in his 401k and switch it to a guaranteed return fund. He's only 46 and I was trying to explain to him that for someone his age, this drop in the stock market isn't a bad thing when you take into account how much longer he will still be working and dollar-cost averaging. I think I got it through to him that the money he has "lost" is only on paper.
 

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Discussion Starter · #15 ·
Just saw a dealership ad on TV advertising $7000 off MSRP on Saturn's Outlooks. Acadias can't be far behind.
 

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I just took delivery on my new 2009 Acadia today (details in another thread). I got the benefit of a $500 rebate. No explanation, no special name for it, just got it.

I'm doing my part to help the American economy.
 

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skyhawk said:
Just saw a dealership ad on TV advertising $7000 off MSRP on Saturn's Outlooks. Acadias can't be far behind.
Sky..,

That particular dealer may be being bold to move his inventory now (if they even can) before the new car sales get completely iced-aged! I guess taking some loss on cars would be better than no sales at all! Definately a difficult time for the dealers. I expect to take deliv. of my Acadia around the 22nd - 24th. Wouldn't that be my good fortune if dealers (or GM) increased their incentives between now and then.

Smooth[/color] <><
 

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skyhawk said:
Just saw a dealership ad on TV advertising $7000 off MSRP on Saturn's Outlooks. Acadias can't be far behind.
Sounds good, but I'd like to see the details. While we were shopping, a Saturn dealer had a similar deal but I think it was around $4K. Turns out there was some catch to it to where it would not work for us. I know I tried to use it to pricematch an Outlook in IL we were interested in, but the dealer wouldn't do it.
 
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