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GM just announced a $15 billion loss for the quarter.
The quarter, that’s not even the whole year.

How much money do they have? How can they stay in business????
I’m no business guy and this makes no sense to me. Unless they have hundreds of billions in reserve, which they don’t.
How long can they last?

They have tons of stuff coming up, but will it be enough?

What do you think could turn things around?
They won’t make money on the Volt. Can the Cruze be as popular as the Civic? (I don’t think so)

What bright spot do you see in GM’s future?
Or Ford and Chrysler for that matter…

Conversation 21 comments

  1. that big mouth arrogant jackass you see in the picture makes a big fat paycheck no matter what. He is to blame

  2. Here in Canada, GM stopped leasing vehicules as of today. No more leasing.. we will have to BUY our GM’s. They say that they were losing to much on returned vehicules. I’m sure Ford and Chrysler will follow pretty soon.

    It’s a big step back for the north american automobile industry and it’s very sad knowing that Ford and GM are about to have very interesting cars in their lineups.

    Will they survive long enough?

  3. Without him, GM would have been under years ago.
    He is the main reason they do have some good cars right now.

  4. I think GM can have a reasonable bright future IF:
    1. Start making high quality vehicles. You don’t meet your quality requirements – you don’t get paid, plain and simple.
    2. Start using higher grade metals, just like Japanese or Germans do.
    3. Stop exploiting “patriotic” motives in their sales tactic, be competitive instead.
    4. Don’t be ashamed to learn from your more successful competitors.

  5. The big 3 will NEVER survive unless they sell a ton of big trucks and SUVs. They are just wasting away producing and trying to selling small cars in the USA. there is no profit margin on $20K and under cars.

  6. I highly doubt GM will be going anywhere anytime soon but the GM as we know it today will be drastically different even just a few short years from now. Times like these make companies either die or get stonger. I think after all the dust is settled GM will be a much more fit and realistic competitor in the marketplace.

  7. I wonder how much of this is “creative” accounting. These numbers seem huge! GM keeps saying they have enough money for 2008 and 2009 but after that they don’t comment. Yet, overseas they seem to be doing well. Not enough to make up for US loses but doing well. Could GM be cooking the books to get a bailout from Uncle Sam and concessions from it’s Unions? Don’t want to sound to X-Files but when the numbers get this huge for one quarter one has to start asking questions.

  8. I’m glad you think that this has been loud mouth schnook had something to do with helping GM but he is a washed up old time thinker. He allowed many duds to enter the market. Even you Vince could have done the same job. he is useless, and you show you don’t know much.

  9. I can’t see a complete collapse, but I can see a huge amount of layoffs and closures in all areas of the company. Simply put, GM has been way too slow to react to the market and they are going to pay for it for the next decade. I would expect the company to be half the size it is now 10 years from now, but at least they will show some sort of profit!

  10. There is a profit margin on $20K and under cars but it is not enough to keep the big 3 in business. The big 3 are SOOOO FAAARR in debt that they can never pull out here in the US. They have been in bad shape for 10 years now…How are they still in business? The government must be stealing taxpayer money and handing it to them somehow.

  11. the sad part is that we the taxpayers might be asked to help out through some sort of a bail out. the gm icon can’t die …

  12. I think the bigest reason for losses is there is too much competition with in your own company. Look at the other companies they have usually at most 3 brands Toyota, Scion, Lexus. Hyundai, Kia. When you have your own product at battle with each other then that’s a problem. They are making changes but really after to Cobalt who needs a G5 it’s just the same car. Have a distinction between each brand and as it was said earlier offer very good quality products with longevity for a compeditive price.

  13. Don’t worry, we will bail them out just like all things americans … airline, Katrina’s victims with no home insurance, speculative mortgage etc. that is the american dream my man!

  14. GM is losing $1971.00 per second, $118,284 per minute, $7,069,069 per hour and $170,329.670 per day.
    How the hell do you stop that??
    How the hell did they let it get that bad??

  15. The theft of taxpayer money to bail out a private corporation is called corporatism, aka, Fascism…Hardly the American dream.

  16. Its too bad they spent all those BILLIONS on researching hydrogen fuel cell vehicles for no other reason than for a publicity boost.

    If they actually cared, or had any foresight, they would have invested in hybrids from the start.

  17. tell GM to buy those chinese and indian auto companies.

    wasn’t that how they survived in the past? (buying japanese auto companies/paying them royalties for their technologies)

  18. I’m sure at least some of the $15 billion loss they announced can be accounted for by things like write downs in the value of assets, debt repayments and other large one off charges, all of which are largely “value readjustments” and therefore paper transactions, involving no actual loss of money. What really counts is just how much money they’re letting slip through their fingers at an operating level.

    It’s perfectly possible for a company to be profitable at an operating level while simultaneously announcing massive “losses”, a la Britain’s Vodafone. On the other hand, it’s also possible for a company to be operationally bankrupt (business activities generating no net income) and still remain in business thanks to exploiting their cash reserves and credit arrangements, much like Chrysler.

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