http://www.washingtonpost.com/wp-dyn/content/article/2006/01/26/AR2006012601343_pf.html

Thought some of you might find this interesting... It's mindboggling

 

good report. Mind boggeling losses for GM. How can a company loose 8 billion dollars? Even more, why would the board of directors and management continue employeed after such losses? Who's backing the pay checks now? Where is leadership when hard and fast decisions are needed?

At least Ford has put out a plan of attack to regain profitability. There does appear to be strong leadership willing to bite the bullet and make hard decisions at Ford. We'll see.

 

Ford should put out a plan of customer satisfaction to some of their past poor designs. That would definatly improve the profitability in the future!

 

Look at that report where GM had a $1.5 billion loss in NA's 4th quarter to foreign rivals Toyota and Nissan. They caused the problem!
I did electrical work at GM's Fremont plant which became the NUMI plant.
GM went to bed with Toyota, now the baby they created has grown up, its too late to abort now. We as workers from GF to apprentices saw the attitude Jap engineers had toward us workers like we were dirty scum of the earth lazy Americans. Sorry I don't want to offend anyone but couldn't be silent any longer about what I have seen working at NUMI with a outside contractor over the years. This didn't happen overnight. Look at the trade deficit between Japan and the U.S., how many hundreds of thousands of GM cars did they buy and ship to Japan? I'll shut up now.
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I don't think most people understand the seriousness of the situation at GM. There are 2 parts to the 4th quarter loss. The ~$1.3 billion in operating loss at N/A operations and the $3.6 billion payment to Delphi for the benefits. If GM is going to be on the hook for another $9 billion to Delphi that will go on top of likely $1.0-1.5 billion losses per quarter next year. Losses of $12 billion this year is not out of the question.

The sprial continues. GM is hoping to sell GMAC to raise cash. But GMAC is about the most profitable part of GM. It will raise a couple billion in capital but worsen the performance. I belive GM's cash is around $15 billion. We can see what the timeline is. If you ask me, bankruptcy is inevitable. I say this because they don't have any new models that are going to save them this year. It would take about 4 new models that are blockbusters to do that. The new Tahoe isn't gonna be able to carry that weight.

I think GM's board has to take Kirk Kerkorian very seriously. I'm not a big fan of his but I think he would be able to make the sweeping changes no one else in GM's management in the last 20 years has been able to do.

Why, oh why, would anyone own this stock?

BTW, Ford is not in a much better position. One big disadvantage Ford has is getting rid of the CEO should this turnaround attempt not work. At least at GM there is no controlling family.

 

And the point about the CEO is a valid one. However, Ford still being a family run business should mean there is a somewhat vested interest in the success of the company on the part of the CEO. That position at GM has been a revolving door for the latest and greatest idea person for years.

 

Gm is about to go to bed with toyota. My theory the aveo is a toyota echo. They also now make components for GM. It was a joint venture together. Why would GM get with toyota vice versa? It opens the asian market to GM and Vice versa. But GM puts out garbage. Yes and Ford has never has e.g. Aerostar taurus. Finally the bonus answer WHY WOULD TOYOTA BY A FAILING COMPANY. GM IS NOT A FAILING COMPANY ITS GROSS MISMANAGMENT ON PURPOSE TO MAKE THEM EASYER TO BUY OUT. GM'S WAY OF STICKING IT TO THE AMERICAN WORKER. They were the first to build in mexico, canada when NAFTA came to become law.

 

The Chevy Aveo is not a Toyota Echo. The Aveo is the result of the purchase of Daewoo when they went bankrupt. It was called the Kalos under the Daewoo banner.

 

RickDill1, the joint venture between GM and Toyota happened 15 plus years ago, you just come from under a rock or a coma? Go get yourself GMC truck made in Brazil.
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whoes gonna tumble first, ford or GM, or will they buy eachother?

 

I bet Chrysler has an eye on Ford and GM and thinking "not again" like when they got financial support from the government or go under.
GM and Ford have a joint venture on a automatic transmission, I wonder if they'll still work together on this project?
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GM will stay afloat, they'll file for some type of bankruptcy protection, default on their pension plan, and emerge with probably a new partner. Then the government agency that insures these pension plans will have to pick up the pieces, people will lose 40% to 70% of the value of these pensions. (didn't a big airline just do this?). We The People, will foot the bill....

 

The gov won't let Ford or GM close there doors. Bankruptcy is probably inevitable for GM. The one good thing ford has going for them, is their overseas operations are doing very well. Only Ford North America has lost money. Actually, the company over all isn't doing extremely badly considering the market right now. GM on the other hand seems to be doing quite a bit worse. They've put all their eggs in the SUV basket, and I think the bottom just fell out. Espically with gas expected to hit 3 dollars a gallon as a LOW for this summer.

 

GM were profit reflects product.
Fly the bitter skys of United, yet they got out of the red.
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