General Motors Trade Opened

[ducati998]

AP
Toyota, GM Earn Top Spots in Quality Poll
Wednesday May 18, 2:56 pm ET
By Dee-Ann Durbin, AP Auto Writer
Toyota, General Motors Earn Top Spots in J.D. Power and Associates Quality Survey


DETROIT (AP) -- General Motors Corp. and Toyota Motor Co., the world's two largest automakers, had the top vehicles in 15 of 18 categories in a closely watched survey of 2005 models released Wednesday by research firm J.D. Power and Associates.


Toyota's Lexus SC430 was the highest-ranking vehicle for the second year in a row. Owners of the luxury sedan reported 54 problems per 100 vehicles, less than half the industry average of 118 problems per 100 vehicles. Suzuki Motor Corp. had the highest rate of problems per vehicle at 151 per 100 vehicles.

Overall, Toyota had the top vehicles for initial quality in 10 categories, including the Toyota Prius compact car, Toyota Sienna minivan and Lexus sedans in all three luxury car categories. GM had five winners, including the Buick LeSabre full-size car, Chevrolet Suburban full-size sport utility vehicle and GMC Sierra heavy-duty full-size pickup.

The survey, in its 19th year, is an important one for automakers, which often use the results in their marketing campaigns. J.D. Power and Associates questioned more than 62,000 people within 90 days of buying or leasing a 2005 vehicle. The survey measures 135 attributes, including handling, braking, engine trouble and vehicle design.

Automakers showed little improvement in overall quality in 2005, moving up just one notch from 119 problems per 100 vehicles in 2004.

GM's Hummer brand showed the most improvement from the 2004 survey, J.D. Power said. Hummer was last among vehicle brands in 2004 with 173 problems per 100 vehicles. This year, it had 110 problems per 100 vehicles.

Nissan Motor Co. had the most improved vehicle model with the Nissan Quest minivan. The Kia Spectra, Hummer H2 and Toyota Scion xA also showed marked improvement.

J.D

 

[roguetrader]

Billions of dollars in hedge-fund money disappeared into thin air amid the GM mess. What they have to do to recover could test the whole market.

By Jon D. Markman

It is a perverse fact of life in the market for financial instruments that the well-intentioned quest for safety very often leads to the worst sort of dangers.

Almost 20 years ago......................................................................................................,

Very interesting article.

 

[DIN]

Thanks chaps,

Trade closed at $32+
cheers d998

Hi Ducatti,

I have been reading this thread with interest and have one question.

- why have you closed the trade now? I think you said earlier that 50% would be a good return, $50 fair value, so why so low or am I missing some thing?

cheers

D

 

[ducati998]

DIN,

Simple answer, KK, spoilt my party.
I had sold COVERED CALL OPTIONS @ $32.50, and was using the Premium to reduce my Principal exposure, this I wanted to continue for 18 - 24mths, while price ticked along, and collect my 8% dividend.

When price traded @ $32.88, or whatever the high was, I was exercised.

Cheers d998

 

[ducati998]

USATODAY.com
GM's discount offer drives buyers to dealerships
Sunday June 19, 10:22 pm ET


It's been a long time since Lynn Thompson, a Pontiac, GMC, Cadillac and Saab dealer in Springfield, Mo., was running short on cars.
But this month, thanks to a General Motors marketing ploy that's giving everyone the same discount employees receive, Thompson is out of the Pontiac G6. And he's running low on other cars and trucks.




"We are having a huge success," he said. "Our traffic is up over 70%."

GM's campaign is doing so well that other companies are starting to copy it. Ford Motor told employees last week it would give them up to $1,000 if they share their discount plan with friends and family.

Chrysler Group is running an ad campaign called "Smart Math" that spells out the value customers get when buying a Chrysler product. "GM has gotten a lot of buzz and a lot of glow over this employee program," Chrysler spokesman Kevin McCormick said. "It's a situation where we just want to make sure our message doesn't get lost."

The last blockbuster incentive program for GM was a zero-percent financing and $3,000 cash back offer after the Sept. 11 attacks. Thompson said October 2001 was his best-selling month, and this month will likely be his second best.

Through the first half of the month, GM's market share is more than 30%, compared with 25.8% in May, according to Power Information Network. The program "is substantially moving the needle for them," said Tom Libby, senior director of industry analysis at PIN. "At this point, it looks like this may be their most effective incentive program, in terms of market share gain, since the post-9/11 zero-percent financing program."

In the past year, GM has been trying different offers with mixed results. The company has said it plans to change its sales strategy, relying less on one-shot incentives and instead pricing vehicles closer to the amount it expects cars and trucks will sell for.

But it might be a difficult pattern to get out of. GM's sales have languished this year, down 6.7% through the end of May.

The employee discount program is helping attract non-GM buyers, according to Art Spinella, president of CNW Marketing Research. Salespeople are enthusiastic about the deal, traffic at dealerships is up 24% compared with last year, and dealers are closing more sales than normal. "GM may well be onto something with its employee discount program," Spinella said in a research note.

 

[tradesmart]

Toyota'd

Good judgement on Duc's part closing the trade at $32.50.....

GM stock hit 18yr lows at sub-$20 today.......