Are GM And Ford Going Bankrupt?

GM and Ford reported huge (and growing) losses in Q4 2019, before the economic crisis began. Both companies have suspended 2020 guidance and have drawn down $15B+ on credit lines. Are we witnessing a slow motion implosion/bankruptcy for America's two largest automakers? It looks like it. Reuters reports, both companies are planning to make 320,000 EVs for North America in 2026 (combined!) ... that would be less than Tesla did in 2019. This is super disappointing, and makes their chance of a turnaround look even lower. Let me know what you think in the comments below!




Disclaimer: This video is purely my opinion and should not be regarded as factual information. I am not a financial advisor. This is not a recommendation to buy or sell securities. Do not assume any facts and numbers in this video are accurate. Always do your own due diligence. As of 03/26/2020 HyperChange host (Galileo Russell) is invested in shares of Tesla (TSLA), Peloton (PTON), Arcimoto (FUV), Snap (SNAP) and long Maker & Bitcoin.

[michelmelinot]

Ford/GM : advertise "The future is now"

Also Ford/GM : *but without us*

[kayrosis]

Assuming they don't lobby their way into another massive bailout...

[MNT]

Norway is going 100% electric by 2025. We're currently at 50% electric in new car sales, with Tesla as the best selling car!

[CaseyBurnsInvesting]

They’re going to be ridiculously far behind with the lack of electrification, declining sales/profits, and their financing/dealership business models.

BK?

[cyberoptic]

In the age of dangerous viruses and pandemics, an EV with a home charger is a blessing for health. No more touching gas pumps and hose handles... Just sayin' Your ICE vehicle owners are condemned to use those public facilities, hopefully with disposable gloves. That gives new meaning to 'cleaner' transportation

[JohnBeans]

If incumbent automakers don't feel like making electric cars, Tesla can grow many times—even in a declining market—as more and more people look for an electric car.

[Elerius]

They've refused to believe Tesla and electric cars would crush them for years now. I thought they had smartened up, but this SUV focus is mind boggling. They're finished if they don't make major company altering changes immediately

[FutureSystem]

If they can’t move with the shift to EV’s, they are doomed. It’s in their hands, and will be their own fault.. They’ve all been knocking Tesla for years, but I have a strong feeling that Tesla will have the last laugh.

[mk]

Spot on. GM and Ford will only survive with massive assistance, and even then for a limited time unless they completely reboot — which is looking ever less likely. You should do a video talking about how their main business is basically financing, and what percentage of their vehicles are repossessed and re-sold multiple times. Many similarities to the 2008 mortgage crisis.

[craigruchman]

I firmly believe that we are at an inflection point, and when the dust settles, the ICE car business is not going to recover.

[aaronvallejo]

When we come out of this virus shut down, can we please invest trillions annually to become 100% renewably powered ASAP?

[breukie]

They aren’t going to make it to 2026 with those plans

[nigelweir]

Imagine how quick Tesla built a factory in China, now imagine their increase in production . 3000 now 10000 by winter 2020

[andrewf]

4.7 million cars were sold in the US last year. 370, 000 were Tesla’s. We are far away from electrification of cars it is ridiculous. If Ford or GM goes under it won’t be a lack of ev’s especially in the next 10 years. I could see a gas crisis killing them. Most people aren’t looking for Electic cars when Chevy releases the volt it was the best ev ever made and it completely flopped.

[richardblais]

I got my Tesla, and I'm at retirement age ... gonna watch GM and Ford sink in the St Clair river ... stocked up with lots of popcorn and Schwepps ...

[panthersfan]

As a Chevy fan, I hate to say this but if it comes down to it it would only be fair if Ford gets bailed out considering they never got bailed out like GM/Chrysler did in 2008. It would be a massive blow if Ford went under for America...

[therealctoo]

My worry is that Ford and GM will claim that the outbreak has affected them and that's why they need a bailout. They'll probably get it, and that will keep them around longer, pumping out more gas guzzlers. It they do get a bailout, Tesla should get some cash too. While they're at it, I could use a billion or two!

[Igneshto]

Now do Merc and BMW.... They seem like they're going down the same route.

[HunterStuart-myazproperty]

Much, much better presenting speed and language. Keep it up. You are becoming a true professional.

AND, you are right on with your predictions/suspicions about Ford and GM. They are in deep trouble.

The problem is, we need them to be healthy manufacturers of EVs. We need at least three, if not ten, very successful manufacturers in the US.

[garn]

You pretty much covered it all, but this in one of the videos I wish was 30-45min long....