Wednesday, November 19, 2008

Solution to GM's Financial Crisis

I don't claim to know anything about GM's financial crisis, but I do have a question. First some background reading. From GM's 3rd quarter earnings announcement:

GM reported a net loss of $2.5 billion or $4.45 per share for the third quarter, blah blah blah.... reflecting dramatic sales declines across the industry driven by unstable market conditions, instability in the credit markets and dramatic retraction in consumer demand, blah blah blah....
Then, this from Chevron's 3rd quarter earnings announcement:

HOUSTON (AP) -- Chevron Corp. said Friday its third-quarter profit more
than doubled
on the back of record crude prices, blah, blah, blah.... The San Ramon, Calif.-based company, the second-largest U.S. oil company, said it made $7.89 billion, or $3.85 a share, in the three months ended Sept. 30, blah, blah, blah.... Revenue shot up 43% to $78.87 billion from $55.2 billion.

So, um about Chevron bails out GM? Since GM won't really make any hybrid cars, it seems only right. Oh yeah I know they make a hybrid Chevy Tahoe. It gets an amazing 21 MPG and can be yours for only $54,000. I can't imagine why it's not competing with the Prius (48 MPG, and $21,000 base cost).

Since GM is reliant on Chevron's seems only right that Chevron use it's unprecedented profits to keep GM in business. What do you think?

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