GM FYI Blog

One Comment

• July 15th, 2008 at 11:32 am

  Helmy El-Sherif

  As a stockholder, I was saddened to hear the news. Here, the company that was the icon of American Industry is facing liquidity problems and having to cut jobs and dividends, while Toyota, according to a June HBR article is swimming in cash. In order to understand the reasons, I looked at the Value Line reports and it seemed that the GM management listened to the advice of consultants and spent about $14 billion acquiring over 200 million shares at prices ranging between $52 an$95 per share between 1997 and 2000. Had those consultants kept GM’s interests in mind rather than their own personal interests driven by personal greed, and informed GM management about the pending energy supply shortages a decade later, and recommended instead that GM invests that huge sum in developing energy efficient technology, GM would have avoided the actions announced today and would have retained its market share leadership. As a stockholder, I suggest that GM sues those consultants and middlemen to recover the wasted monies and reduce GM’s liquidity problems.

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