In this video, Blake Bos outlines three risks to General Motors:
- GM rides the highs and lows of the economy. If the European economy falls flat, for example, GM will feel it in its earnings.
- A substantial unfunded pension liability will eat into earnings for the next few years.
- Corporate culture has begun to improve, as its high-quality popular new cars bear out. Will the trend continue, or will GM slip back into its past habits of mediocrity?
For more details, check out the video.
Worried about GM?
Few companies lead to such strong feelings as General Motors. But ignoring emotions to make good investing decisions is hard. The Fool's premium GM research service can help, by telling you the truth about GM's growth potential in coming years. (Hint: It's even bigger than you might think. But it's not a sure thing, and we'll help you understand why.) It might help give you the courage to be greedy while others are still fearful, as well as a better understanding of the real risks facing General Motors. Just click here to get started now.