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Newman: GM Not in Crisis Mode

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    Rick Newman of U.S. News and World Report on the disappointing sales from GM.

  • Duration 5:31
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Joining the company now is is Rick Newman he's with US news and world report he knows general -- is all of government -- as I call it he doesn't call it that he calls it.

Good old GM.

I see these as bad sales numbers I think General Motors is in crisis and you say -- Well I think the word you use a phrase mildly disappointing awhile ago I think we've been expecting lower sales for GM we know that they've been paying higher incentives -- -- that that promotion have machete didn't really work.

And we also that the Japanese are really coming back strong after the earthquake and tsunami in Japan last year but you don't know lingering crisis.

I don't think they're well enough -- there's clearly some turmoil they discovered -- global head of marketing and something's not going right.

While that may have to do with Europe Europe is a total mess as is some Ford's European operator okay that's a big problem.

Cannot pay back any time soon the 26 knows the -- of the US -- can't that the stocks -- twenty it needs to be 53.

Before they can pay back they've gotten rid of at least three very senior executives that on Albright the going to runs marketing -- going to run Europe -- -- -- run manufacturing all of them either gone all demoted right.

And what else -- we got we got sales down 19% month over month is.

-- not a crisis I needed to give -- perspective let's compare this to the old GM.

Where they may have turned in results like this and -- just trust us we'll fix this in a year to earn five years I mean you could look at this and say all -- turn ever that's happening.

This is an away a good sign for GM because it shows they're not tolerating an underperformance OK -- -- they are saying look we know we have to get.

While General Motors is obviously reporting a drop so they're outside of the overall -- they can't blame this on the economy and well I'm I don't think it -- I -- on the President Obama gets you precise political opportunity especially with polls now showing.

Ohio and Michigan close.

And the president had alerted the where's that gonna play I mean Mitt Romney's dad now criticizing close dealerships is about Ohio that may not even air in Ohio because Ohio people generally are happy about the GM -- thing that would save thousands of jobs there.

Then in Michigan -- -- many noted that it -- bailouts saved their bacon clearly hasn't been popular in the rest of.

Kind that Romney advisor madness is airing today in Oklahoma OK that is running -- we got to bite from that by any chance and I will I think -- -- -- -- because I think Ohio is a strong auto.

That's on it lets see if you think this is perplexing role it plays go.

-- up your homeowners started in 1972.

Selling cars and 2000.

900 the Obama administration's bailout of General Motors and -- dealerships forced to close.

I received a letter General Motors they were spending.

My credit line.

But we had thirty some employees who were out of work my wife and I were last -- their films like the dream.

-- we work for that we work so hard forward.

All right so that's a Romney -- Looking at GM dealerships spoke a big negatives that in my head on had but go ahead well it's a negative I mean he's got these guys put out of business because of the -- while running Enron had a bomber is saying -- don't we we saved General Motors we -- the car industry.

And now.

Then -- doing so well well Romney advocated letting General Motors go completely under in which case -- all GM dealership he had a -- that what we're we're we're some of them what.

He advocated a regular bankruptcy.

Which will most which we -- not -- on -- -- appearance -- general months enough that they all the alternative to the bailout was not nothing to disappear.

It was a sure yeah.

Regular -- -- regularly you know that there was nobody who was gonna come up with.

With the financing to get GM through bankruptcy I think they try want to I'm not that ending the bankruptcy that bankruptcy was it -- probably the worst pragmatic option -- was.

But I think people in Ohio understand understand this may be better than of people elsewhere in the country because that's where the jobs are.

They know that the -- -- that the bailout save a lot of manufacturing jobs are those it would be out of work and save some.

Shares -- was onto something if GM is losing share.

If they owe the government money and people are out of work.

That is a huge political and substandard negative for the president.

Locally in the midwest and actually it's something Romney has and exploited.

Let's look to see if he does I think runners in a tough position because where he needs to make that where he needs to make the case is in the states that benefited from the ballot I mean a lot of people agree with you I think your point is valid but what he's essentially half a million dollars -- the -- Plus monitor went to the union we're not getting it back.

We are not getting it back anytime soon I mean I would love to see the government hold onto their shares as long as you can and try to get the money back and in and others pressured get rid of -- shares had to be huge loss for taxpayers.

You know there's a generally a buyer rating on GM right now -- analyst consider GM GM's process.

Pretty good for the next several -- economy and has enough money.

-- -- you know I mean it look there's a lot of trouble here for this company but they're gonna have new models coming out over the next couple years.

And they're gonna catch back up to Japanese I'm not sure wherever -- get our money back I think the stock is gonna get.

Closer to 3035.

Than it than it is now I don't know about 52.

You wouldn't buy it which nineteen I I think GM is a -- mess right now I cry when Biden Christ is -- in crisis.

It's in turmoil until we we -- we might be nitpicking over terms here but let's see if this kind of -- this -- actually produce some results are Rick -- we appreciate being with -- thanks thanks to -- -- thank you.

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