This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Work With Competitors to Survive: A Lesson From GM

For more stories like this, check out our Small Business section.

Want to guess what the stock market will do next week? Good luck. With turbulence the new status quo, there's only one economic prediction I'm willing to make with reasonable certainty: 2008 will end go down as a miserable year for U.S. automakers.

The auto industry was already at the bottom of a very steep downswing, thanks in part to the summer's record-high gas prices. Then came the global financial system's near-total meltdown, and it looked like the big car companies were headed for life support.

Not long after General Motors' (GM - Get Report) stock hit a stomach-churning 53-year low, we began hearing whispers about talks between GM and Chrysler, currently owned by private-equity firm Cerberus Capital Management. News that the Big Three might become the Big Two could be taken as yet another sign that the U.S. economy is in serious trouble.

But it could it also could serve as an encouraging sign, a symbol of perseverance against tough odds? This is a make-or-break year for many small businesses, as owners struggle with declining sales and tight credit. When you're in a fight for survival, you have to consider all options -- even working with competitors you once battled against. You may find you have more in common than you think.

Most of the quickie takeovers we've seen in recent weeks have shown clear benefits for the buyers. Bank of America (BAC - Get Report) bought Merrill Lynch (MER) because Merrill brought with it investment banking and brokerage expertise. Wells Fargo (WFC - Get Report), based in California, wanted Wachovia (WB - Get Report) because it had branches and business ties elsewhere in the country, which would help make Wells Fargo a national player.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $17.17 -0.29%
F $14.99 0.00%
GM $33.04 0.00%
WB $16.78 0.00%
WFC $56.91 0.00%

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs