Why I Think General Motors Will Be Bankrupt Before The End Of The Decade

Thanks for sharing these wonderful ideas boss and your thoughts as well

Oh man so sad. We lost GM which is trading as Holden in Australia back in 2016 I believe. I currently own a 2010 Holden Commodore sV6 sports Wagon. It's only a V6 but I'm in the process of upgrading the family car. Traditionally I'd sell this Wagon for peanuts. But I'm putting it out the back, covering it up and going to be fixing it up over the years.

It will be a classic and collectors item. Worth more than Bitcoin in the future.

I think GM also had great numbers on profits from cars so I think there are some people who believe they will do well. However I do agree they are far behind on EVs and they will lose market share.

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If America had a free market, instead of the fascist kleptocracy that currently rules us, GM would have gone extinct in 2008.

I'm saying this as someone who was a hard core Chevy partisan in the 80's and 90's. It's just the way I was raised. Up until 2011 the only vehicles I'd ever owned were Chevy pickups. By the time the bailouts came around though I woke up. I bought a Honda in 2011, and a Toyota in 2019. I'll NEVER buy a Ford, GM, or Chrysler again. Crappy products.

Very interesting discussion of the changing landscape in American Car Companies.

Tesla is a growing competitor in car sales and I read statistics similar to those your quoting suggesting Tesla may indeed reach one million cars delivered in the US next year and potentially knock Toyota off it’s perch at number one and push GM further down to number three.

But more importantly perhaps then looking at that from a Bragging Rights perspective you focused on it from a company survival perspective which few people seem to mention.

Your right that Tesla’s increased sales have to come from someone elses decreased sales! And that someone is most likely Toyota, GM and Ford.

Plus you hit on two other important factors huge existing debt, large amounts of new research and development debt and decreased sales revenue from selling electric cars due GM subsidized prices and loss of one gas engine sale for every EV sale called canabalization which further reduces revenues.

You swiftly pointed out that debt payments become more difficult to pay as revenues stop and debt payments become a larger and larger portion of your budget. Plus they are adding instead of subtracting from their debt. By borrowing to invest in Electric cars or EVs to compete with Tesla.

Add to this the subsidization of EV prices a car company has to make in the beginning as costs exceed market value until they are making enough production to lower costs to a break even point and from there a profitability point and you have more debt.

The final nail in the coffin is canabalization of gas engine sales. Buyers purchase Elevtric vehicles GM sells at a loss and don’t buy gas engine vehicles GM would have sold at a profit.

So sales revenue drops further as EV sales actually lose GM money two ways Jn the beginning stages of EV sales.

It’s a far from rosey picture and I think you hit it on the head.

Nicely done and in only ten minutes.

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Summary:
In this video, Task discusses General Motors' financial situation and the risks they face in the EV market. He highlights their substantial debt of $110 billion and their plan to invest $35 billion to transition into the EV market by producing 1 million EVs by 2025-2026. Task points out that Tesla is already surpassing GM in terms of vehicle production and sales, which poses a significant threat to GM's market share. He emphasizes that GM is late to the EV game and is at extreme risk of losing more market share to competitors.

Detailed Article:
Task delves into the financial challenges facing General Motors, focusing on their massive debt of $110 billion and their plan to invest $35 billion to transition into electric vehicles. He points out that despite GM making around $10 billion in annual net income, their ambitious goal to produce 1 million EVs by 2025-2026 may not be enough to compete with Tesla, who is projected to exceed that production volume.

The comparison between GM and Tesla is a central theme in the discussion. Task highlights that Tesla's rapid growth in the EV market, with projections of producing 2 million vehicles the following year, far surpasses GM's production capacity and poses a significant threat to GM's market share. He underlines the risk GM faces as electric vehicle sales eat into traditional internal combustion engine (ICE) vehicles, potentially impacting GM's current customer base.

Furthermore, Task emphasizes the importance of timely market entry in the EV sector, stating that GM's late arrival and slow production expansion could be detrimental to their future success. He predicts that GM's market share will continue to decline as competitors like Toyota and Ford increase their presence in the EV market. Task also points out that GM's decreasing annual sales volume over the past five years further compounds their financial challenges, making it increasingly difficult for them to service their mounting debt.

In conclusion, Task expresses concerns about GM's ability to compete effectively in the evolving automotive industry, given their substantial debt, slow transition to EVs, and the growing dominance of competitors like Tesla. He suggests that GM's current trajectory could lead to a significant decline in market share and a struggle to maintain financial stability in the coming years.