Ford $1.2bn profit, GM $1.1bn loss in same period. Why?

 

good question. i am interested in some true facts here too. something other than ford has better looking vehicles. that might be part of it though.

 

Three words: EFF won FIFTY!

 

It's complicated- isn't it always with big corporations? In GM's case, it's poured over $30 billion (with a capital "B") into it's pension and healthcare fund- but it's still underwater $54 Billion. What's more the healthcare side of that obligation is growing at a better-than-10% clip. This particular quarter, lowered revenues (thank generous rebates) and one-time charges in Europe caused the largest portion of the loss.

Things were a little better over at Ford, but the Company is calling for a breakeven-to-loss for next quarter. It's all a matter of scale- Ford pays out about $3.1 Billion in healthcare, less that GM's $6 Billion, but not cheap either. The big question is whether Ford will get frustrated with GM's attempts to gain market by slashing prices, and follow into the fray. That would have a negative impact on earnings as well.

 

I think you've got to be careful when comparing quarterly results. The corporations manipulate the results by changing when they post losses or gains from sales of other assets and when the take a charge for various expenses. The books are somewhat "cooked" to make their situation appear better than it actually is.

 

The books are somewhat "cooked" to make their situation appear better than it actually is.

Yep- or worse, as the case may be. sometimes, when a quarter looks to be ugly no matter what happens, they throw everything bad at it all at once. Get's all of the bad news out in one fell swoop.

 

Paying Fiat $2 billion in February certainly didn't help GM.

 

oh so if my math is right, they would have been .9 Billion dollar to the good. leaving them only a small (LOL) .3 billion behind ford.

 

So what'd they do back in Warren, anyway? Sit around having pasta for lunch one day and think "Gee, why don't we buy Fiat?"

 

No they just sat back and about who's fault it was or who's great idea it was and whether or not that person should have actually lost their job over it.

I am sure the internal works of GM higher up have to work about like a soap opera right now.

 

No- I know exactly how GM works. They looked up the highest ranking executive that retired or quit recently...and blamed him.

 

Yea and prolly gave him a healthy departing allowance as well.

 

Well Fords got two hot products on the market now. F series and Mustang. Those 2 products are selling extremly well without much rebates. GMs making less money per vehicle then Ford right now. GM has to put on huge rebates on there trucks to move them. As well as cars. Ive heard the car 500 is selling well with out rebates. GM has had some serious quality issues with there vehicles that has definitly hurt them overall. And these gas prices sure havent helped either.

 

150ford Well Fords got two hot products on the market now. F series and Mustang. Those 2 products are selling extremly well without much rebates. GMs making less money per vehicle then Ford right now. GM has to put on huge rebates on there trucks to move them. As well as cars. Ive heard the car 500 is selling well with out rebates. Even though GM has resolved their prior quality issues, and ranks as the top domestic manufacturer for build quality, sales softness persists.. And these gas prices sure havent helped either.

There...fixed!

 

Hey Polar do you have a 50 MPG car in your lineup I want it. We need a lot more of these kind off cars. How about a 30 MPG pickup.. Thats the answer to GMs or Fords problems.