GM lost $39 Billion--Wow
 

GM, General Motors, announced today they "lost" 39 billion dollars in just 3 months. I know its not cash, ( notes, tax credits, etc.), but how in the world is this possible. The biggest quarterly loss in history. Man, things are so strange these days, what's next? I bet Exxon-Mobil will have "record" profits next quarter. When will the supply of gas meet the loss of consumption?

They are unable to make cars that make sense...Don't be surprised...Toyota-Honda-Nissan are opening new plants...Not difficult...Make cars that peoples want to buy...The key word here is RELIABLES...!

Excerpts from Reuters:

General Motors Corp (GM.N) posted its largest quarterly net loss on Wednesday, reflecting a $39 billion charge related to unclaimed tax credits and a deeper-than-expected loss at former finance subsidiary GMAC.

GM had warned on Tuesday it would book the $39 billion charge against deferred tax assets. It was prompted by GM's cumulative losses over three years, the risk of weaker auto sales and the pressure facing GMAC in coming quarters.

The move wiped out all the deferred tax credits GM had accrued in the three years since it began taking charges to restructure its troubled U.S. operations.

Accounting rules would still allow GM to use those credits to offset future taxes if it returns to profitability, GM's Henderson told reporters. "Nothing has changed in terms of the economics of the business," he said.

GM's revenue fell 10 percent to $43.8 billion, a drop attributed to its spin-off of GMAC.

The cost to protect GM bonds against the risk of default jumped to about 600 basis points, meaning it costs $600,000 annually to insure $10 million of debt for five years.

GM shares were down $1.92, or 5.3 percent, at $34.24 in late trading on the New York Stock Exchange.

Doesn't sound like it has much to do with cars...

GM's revenue fell 10 percent to $43.8 billion...and will continue...

Too invested in gas-hoggin' H2s and Yukons and Tahoes and not enough in cars that will weather the coming energy crunch.

They did the same thing with POS "boat" cars in the 1970s and the Japanese & Europeans handed their asses to them. Obviously they've learned nothing from the experience.

Oh, but they have OnStar! :rolleyes:

More from the Reuters article:

Some analysts noted an improvement in GM's global auto operations was at risk of being overshadowed by the charge. GM posted net income of $122 million from continuing auto operations after a loss of $455 million a year earlier.

GM also reported higher global vehicle sales than rival Toyota Motor Corp (7203.T) in the quarter.

Toyota, valued at about 10 times the market capitalization of GM, posted a quarterly profit of almost $4 billion earlier on Wednesday.

JP Morgan analyst Himanshu Patel said despite the "messy" third-quarter results, the performance of GM's auto business was "actually better than we expected."

In a note for clients, UBS analyst Rob Hinchliffe called the GM results "very ugly," but also noted that GM's auto business had done "modestly better" than expected.

Not to worry. I'm sure Hillary can bail out GM with the money she was going to use to bail out all the dumbf*cks that bought interest-only ARMs.

In all seriousness, isn't $39B only like two weeks of Iraq?

Actually, if it is GMAC (the mortgage arm of GM) that is losing all the money, bailing out ARM-holders and bailing out GM are one and the same.

Yup...with a loss of 39 billions...!

GM's net income from auto sales improved by $577M, for the period, as compared to last year. It was their financial services that cratered.

Zef, its revenues fell by 10% because of GMAC, the finance arm it was forced to sell off. GM - and I am no fan of the General - has been improving sales and is now looking like the strongest of the American big 3. Their turn around plan appears to be working, and they may even retain the title of biggest car maker for another year.

In comparison to Ford and Chrysler, the good times are back at GM. I'm actually very impressed with what they have managed to do in a short time.

That's right. This has nothing to do with car and truck production. GM (through GMAC) found itself the unwitting victim of sub-prime lending.

In fact, it's last quarter profits from car and truck production was at a record high worldwide.

QUOTE: "..announced today they "lost" 39 billion dollars in just 3 months."
_______________

The wife will not believe me when I tell her my ebay business is outperforming GM!

Success at last!

I have to say that my wife's car is a 2001 GM Pontiac Gran Prix, probably one of the best cars we've owned. No problems, no issues. I've had it since 2003. I dont know about their newer cars, but I would buy another one.

GM just has its head up its ass. One guy with a a highschool education has been able to out-engineer them with their own parts:

http://www.fastcompany.com/magazine/120/motorhead-messiah.html

"Conservatively," Goodwin muses, scratching his chin, "it'll get 60 miles to the gallon. With 2,000 foot-pounds of torque. You'll be able to smoke the tires. And it's going to be superefficient."

He laughs. "Think about it: a 5,000-pound vehicle that gets 60 miles to the gallon and does zero to 60 in five seconds!"

Well, a year ago, GMAC and Ditech were the only divisions of GM that were actually profitable.

Cerberus bought GMAC/Ditech.

They (Cerberus) also bought Chrysler from Daimler/Benz.

Sadly, this happens as GM is building it's best cars ever. While Cadillac may not be BMW, and Chevy may not be Toyota, many of their products are quickly closing the gap. The improvement in quality and content is remarkable. This coming from a guy that was recently a devoted GM hater. It's a process that should continue, many of their upcoming models are pretty impressive. Compared to Chrysler and Ford, they are on the right track.

That guy Goodwin is damn sharp cookie. I know a fair number of guys like that, no formal education but smarter than hell. BTW, the GM Duramax can be had with a 6 speed standard transmission, you don't have to get the Allison automatic.

You couldn't be more wrong, SUV, trucks and big cars are what Americans want. It may not be what you want them to want but it's true.

American sales were taking it in the shorts long before the price of gas was a concern, it's a virtual non-factor.


Quality (both perceived and real) and design are/were killing them.