|
Registered
Join Date: Jan 2002
Location: Nor California & Pac NW
Posts: 24,879
|
It's even worse than that. GM actually makes a lot of its money from mortgages.
In 2004 GM earned $1.2BN from auto manufacturing, $1.5BN from auto financing, and $1.1BN from mortgages.
In 1Q05 GM lost $1.3BN from auto manufacturing, earned $0.25BN from auto financing, and earned $0.39BN from mortgages.
If and when the real estate market rolls over, another leg of the stool will be kicked out from under GM.
Okay, so they do have $20BN in gross cash, but the auto business generated negative $3BN of cash flow in 1Q!
__________________
1989 3.2 Carrera coupe; 1988 Westy Vanagon, Zetec; 1986 E28 M30; 1994 W124; 2004 S211
What? Uh . . . “he” and “him”?
|