Robert Barry Gm Quotations

We doubt a buyer gets in front of risk that a strike cripples GM North America. UAW negotiations tend to go down to the wire -- now March 31 -- so a GMAC sale is harder to envision before sometime in the second quarter.

We are not confident the restructuring addresses the core issue that GM brings too much supply to the North American market.

What investor wants to buy a company that sells plastics to GM when plastics are going through the roof while the prices GM pays go down?

We believe that GM's market share will continue to face persistent long term downward pressure, and that market pricing pressure will intensify over time, eroding GM fundamentals further.

We remain confident GM will offer some assistance to Delphi, but bankruptcy risk cannot be ignored. We think GM would find it hard to justify not offering its struggling, former captive supplier, Delphi, some form of assistance.

These trends keep us confident in our assumptions of sizable Ford and GM share loss in 2006.