Posted on 05/07/2009 5:52:59 AM PDT by John W
DETROIT (Reuters) – General Motors Corp said it burned through $10.2 billion in the first quarter as it failed to cut costs fast enough to offset a sharp decline in global sales and was kept afloat by a federal bailout.
Revenue dropped by almost half to $22.4 billion as the company cut production by about 900,000 vehicles and tried to run down costly inventories on dealer lots in the United States and Europe.
Chief Financial Officer Ray Young said there was evidence consumers were scared away from GM cars and trucks because of concern the automaker was headed for bankruptcy.
"You could not offset the revenue implosion that we experienced here," Young told reporters following release of the quarterly results on Thursday.
He said GM still hoped to complete a debt restructuring out of court but was ready for bankruptcy if that proved necessary. He said GM was pressing ahead with contingency plans for a quick bankruptcy process, drawing on the experience of Chrysler LLC, which filed for bankruptcy last week.
(Excerpt) Read more at news.yahoo.com ...
Of course, wait until next tax season when there is a box to check off for you to prove that you purchased at least one unit from "Government Motors". You will have to include the proof purchase. Those without the box checked off will automatically be placed in the "To Be Audited with Extreme Prejudice" inbox at the IRS.
OMG, I had forgotten about this. I remember thinking that GM was crazy to enter that partnership to begin with. Chrysler is being "shotgun wed" to Fiat, though. The end result will be interesting.
We're already there.
Hey, it's only tax money. It's not like it really belongs to anybody. Just print some more!
Besides, the UAW can always pick up the pieces and partner with Lada!
You think we are in a depression?
An American without a domestic industry is a weaker, less prosperous nation. All civilized countries have an auto industry...as for GM, they are making profits in China if you can believe it. They had the best month ever...now why can China afford to buy cars but we can’t (all cars are down in the US)...wait China makes things,produces things,thus they have cash and we do not produce much so we have deficits...what’s wrong with that picture?
That ain’t all.
Their retirees are organizing to protect their benefits too. Guess who’s gonna pay for that gravy train?
http://www.freerepublic.com/focus/f-news/2244473/posts
The U.S. Auto industry’s final straw was the Dem 2006 Congress with the NO Energy Policy which caused gas to go to $4.50 a gallon. The pandering to the UAW was the other problem. I would buy another Ford but never a Chrylser or GM now. Sad about GM.
You are right. It is sad and very damaging for the country.
Fiat. They obviously know how to make money..., now, if they only knew how to make cars?
Heck, the US has recently named her currency after them - Fiat money.
Fiat isn’t making any money.
EVERYONE is in the welfare line that you and I are financing, with debt being extended to our childrens grandchildren.
This crap will hit the oscillating device.
Mr. Head will get what he wants, corporate failure and government takeover. I never thought I would see Fascism in this country.
Up next, Universal Healthcare. America goes down for the count...
If the GOP had any brains, they might seize on the fact that taxpayers are gonna subsidize the retirement payments and platinum benefits of hundreds of thousands of union members and beneficiaries.
If the GOP had any brains, they might seize on the fact that taxpayers are gonna subsidize the retirement payments and platinum benefits of hundreds of thousands of union members and beneficiaries.
The GOP IS DOA! So goes America.
Sounds like my local Ford dealer. Losing money on every sale but making it up in volume.
Bingo, this stolen taxpayer money does not just “go up in smoke”. Books will be written about this massive theft. Then, they will be burned.
Now, you are back at the core of the problem. The End. Roll the credits.
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