It’s Getting Worse for General Motors (Collapse is Coming)

General Motors a behemoth in the automotive industry finds itself walking a tightrope as it grapples with a daunting task of transitioning to electric vehicles in a rapidly evolving Market despite its size and scale the company is facing an uncertain future as it navigates this critical juncture in its history led by CEO Mary Barra GM is wrestling with setbacks in the Chinese market and fighting an uphill battle in streamlining its own U.S operations to make things worse as General Motors is navigating through these turbulent Waters Tesla CEO Elon Musk has recently Unleashed a series of Bombshells at Tesla's investor Day event that have the potential to further impact the industry leaving GM at a distinct disadvantage Tesla has already slashed vehicle prices earlier this year which has been putting noticeable pressure on its peers but now General Motors is stumbling over its own feet as the race towards ever higher EV market share heats up and before we continue stop using Yahoo finance stop using Google Finance and have a look at our website the market isopened.com where we have instant stock quotes and a brand new set of financial data going back 15 years and it's all freely available CNBC fast money panelist Dan Nathan appears to have very high hopes for General Motors but not so much for Tesla this may Echo some of the broader markets seemingly positive sentiment towards General Motors but may end up being unfounded Nathan just recently stated on CNBC that it's actually Tesla that has the most to lose in this market he boldly says that it's Tesla that has all of the risk not any other OEM as they're all focused on Tesla's market share in EVS trying to grab it therefore Tesla is the company with the most to lose not a 55 billion dollar market cap company like General Motors GM is going to be around in a hundred years and he says the jury is still out if Tesla will be around now Dan Nathan is focusing on Tesla's electric vehicle market share which is a double-digit percentage but in a very small but growing Market what he's forgetting is the majority of vehicles being sold are still ice cars and in the overall Market Tesla has just a two to three percent share while other oems have the rest to defend or to lose this is already evident in GM's frightening declining sales chart showing a 40 drop in deliveries since its peak in 2016 where GM sold 10 million cars down just to under 6 million cars delivered in 2022 Tesla sold 1.3 million cars last year just a fraction of GM not to mention the rest of the Auto industry indicating that there's still plenty of room to run as the shift to EVS is in its infancy so it's clear that General Motors has much more to lose than Tesla as the vast majority of their sales still come from cars that are being phased out even if GM can hit its targets of 50 electrification by 2030 the other 50 of its sales will be long gone by then Dan Nathan also makes the ridiculous claim that GM will be around for another hundred years but the General Motors of today hasn't even been around for 13 years since its IPO in 2010. the company went bankrupt in 2009 completely wiping out shareholders during the financial crisis and even right now the company has rebuilt its Financial arm GM Financial which is one of the main entities that got it in trouble in the first place and now we're starting to see Banks fail in the U.S and around the globe in another economic downturn led by round two of a financial crisis this also brings us to a recent move by GM CEO Mary Barra who recently gave buyout offers to the tune of 1.8 billion dollars for Union employees before UAW negotiations began this came just two months after Mary Barra said General Motors wasn't planning any layoffs but is also reminiscent of the 2009 disaster were GM similarly laid off thousands of workers just before going bankrupt four months later the recent move for voluntary white-collar buyouts are meant to be part of an effort to reduce costs and streamline GM's operations however it's noted that the timing of these offers seem to be aimed at appeasing the United Auto Workers or UAW Union which has been like an anchor on GM's ability to move quickly and to innovate the United Auto Workers has typically been resistant to layoffs and job reductions which is why the implementation of voluntary buyouts may be viewed as a means of reducing head count without attracting the Union's disapproval this approach enables the organization to downsize while avoiding any potential backlash from the UAW although if not enough employees take the buyout offer the company may still be forced to resort to layoffs reportedly General Motors offered the buyouts to the majority of its U.S salary workers this could be like throwing the baby out with the bath water as GM has no idea of what talent it may be losing from the company as people accept the buyouts now while General Motors is looking to cut costs in some areas in other parts of the world GM is increasing salaries to appease the unions in response to Rising inflation union workers at GM's pickup truck Factory in salau Mexico will see salary increases by 10 percent this year going into effect on March 25th 2023 surpassing last year's 8.5 percent raise while this is great for employees the uaw's grip forces increased spending at perhaps undesirable times especially as economic recession looms unions themselves make more sense in Monopoly Industries where workers can't simply switch jobs to go elsewhere while half a century ago the United States Auto industry was a happy oligopoly and unions perhaps made more sense today's rapid and Relentless pace of innovative disruption May wreck any company that has its shoes tied in a knot moreover in China General Motors has been experiencing a massive decline in its Chinese market share which has fallen from approximately 15 percent in 2015 to 9.8 percent in 2022 the first time it has dropped below 10 percent since 2004 according to CNBC its earnings from its operations have also Fallen by almost 70 percent since its highs in 2014. the decline appears to be due to the rising economic and political tensions between the U.S and China as well as growing competition from government-backed domestic automakers and a generational shift in consumer perceptions regarding the automotive industry and electric vehicles but interestingly another American company Tesla appears to be doing quite well in China which goes counter to these claims the majority of Tesla's China sales come from just two models the model 3 and the model Y which appear to be resonating quite well in the country perhaps the Chinese market simply isn't happy with GM's current instead of offerings while General Motors plans to have 15 new electric models in China by 2025 this may not help a wider variety of models actually adds more overhead during Tesla's investor Day event Elon Musk brought this up saying that there are hundreds of variants on the road today but are they good variants companies have run out of things to do with them so they just reshuffle the deck and so the industry will converge just like the phone industry did according to Elon and this takes a page from Steve Jobs at Apple who always promised to deliver the best phone or product in each and every year which is why Apple can still dominate even with so few variants and we're already starting to see some of the impacts of releasing new models just for the sake of having new variants and how it's impacting General motors's North American Business GM's Hummer EV has been disappointing to say the least the company delivered 854 GMC Hummer EVP hiccups in 2022 which is 72 in the fourth quarter of last year this represents about 0.2 percent of the total Brand's volume the Hummer is a massive over 9 000 pound vehicle with a 212 kilowatt hour battery pack which seems to be draining the rest of the company of battery cell availability while GMB Tesla to the punch by releasing one of the first electric pickup trucks Tesla spent all of 2022 focusing on increasing its proprietary 4680 battery cell production in anticipation of the Cyber truck's confirmed launch this year like all of Tesla's Vehicles cyber truck will likely be able to scale far quicker and to a much higher degree than any of its competitors and so the first to Market Advantage will be short-lived for companies like General Motors it's also becoming harder and harder to differentiate against Tesla again reminiscent of Apple where where they would copy every competitor feature they thought useful and then add 200 of their own to completely crush the competition for instance when the Hummer EV was first announced General Motors boasted a crab walk feature which allowed the back wheels to turn and the car to move diagonally shortly after however Elon Musk said that this feature would also be coming to the Cyber truck another one of the features that was setting GMC's Hummer EV and some of the other automakers apart was bi-directional charging technology allowing the vehicle to discharge power back into the grid the system which GM calls V to L will also enable the Hummer to power devices or provide backup power during outages proponents have touted that bi-directional charging could become a vital part of the energy grid as more electric vehicles and renewable energy sources become available however at Tesla's recent investor Day event it was confirmed by senior vice president jeru baglino and CEO Elon Musk that bi-directional charging will not only be coming to the Cybertron truck but also Tesla's entire lineup over the next one to two years Tesla has expertise designing its own inverters and Power Electronics while the company didn't believe it was a priority in the past and Elon Musk still reluctantly doesn't think it's needed Tesla has found a way to add this bi-directional charging feature while at the same time actually reducing the cost of its power Electronics within the vehicle again this feature can be useful in certain situations especially during power failures although Elon Musk has a point that sending power back to the grid is not that beneficial as it will simply drain the car battery which isn't ideal that said it's interesting to see the team at Tesla add it into the vehicle despite Elon Musk viewing it as unnecessary however this eliminates another key differentiating factor that Tesla competitors have making it even more difficult to take on Tesla's lineup of EVS General Motors faces a launching transition to electric vehicles and must contend with setbacks in China and struggles to streamline its U.S operations in the face of powerful unions while there appears to be optimism towards GM's future Tesla CEO Elon Musk has made some bold moves that could further impact the industry adding more pressure to GM's already ailing situation so do you think General Motors will be able to turn it around in the U.S and recover its market share in China and do you see GM being a company that will be around for the next 100 years don't forget to watch my video on Tesla's new motor enhancements please hit the like button and subscribe we would really appreciate that and a huge shout out to all of our patrons that helped us support our Channel your support helps us to continue to make great content thank you guys so much for watching

Channel: TMIO Tesla

Views: 70,028

Keywords: tesla, elon musk, The DECLINE of General Motors, Mary Barra Slashes Employees at General Motors, The COLLAPSE of General Motors, GM's Collapse is Accelerating, GM Just Announced Massive Buyout Offers, The Cybertruck will CRUSH GM's Hummer EV, Tesla Cybertruck, Tesla EV, GMC Hummer EV Pickup Truck

Id: rTgh1Fsr_t8

Length: 12min 27sec (747 seconds)

Published: Sat Mar 25 2023