I guess Ditech and subprime car loans weren’t such a great cash cow after all.
All 74,000 union workers are included.
Make crappy, overpriced vehicles, and you get crappy finacial reports.
A couple billion here, a couple billion there - pretty soon your talking real money.
The weak dollar will probably not help GM as it will have to pay more for all the outsourced material.
Word on the street here in Detroit is that this is a good sign for GM. Most of the loss was an accounting loss from tax breaks, and the revenues are up.
Wall Street has the stock futures going up, so it’s not the doom and gloom the headline would suggest.
Why spend the extra $12K when I know that's coming up?
Far too many factors to be able to fully address them in a post. But I will throw a few into the hat:
GM quality has not meant much in the last several years. After a short upswing, observed quality has fallen in the last 7 year or so, with no apparent effort to rectify the situation.
Design - some really ugly designs have come through GM in the last several years. Remember - the first thing that attracts customers is looks, then followed by quality (and a growing number looking for fuel efficiency).
Some not-so-good business decisions as a whole - investing in some real losers (like Daewoo a few years back). Then the investments in credit companies...ugh.
Feel free to add...
By the way - are Honda and Toyota bleeding cash and laying off/buying out tens of thousands of employees???
“Excluding the tax charge and other special items, GM lost $23 million, or 4 cents per share, for the year, compared with a net income of $2.2 billion in 2006, beating Wall Street’s expectations. Analysts polled by Thomson Financial expected GM to post a full-year loss of 95 cents per share.”
Looks like their performance exceeded expectations, by a lot.
all Chevys .except the Vette and all Buicks are gonna be offered at world classs pricing this summer and early fall...The quality is the reason.....GM will set sales records AND QUALITY not seen since the mid 60’s.
......I do work for GM and have for 21 years
How far up with the stock market go on this news? /sarc
What kinda crap is that?
Oh, thank God it had nothing to with the cars they build.
Really sad about GM. However, no business can stay in business over the long term with their insanely bloated cost structure and the way they have given the store away to the unions.
I used to teach classes at the Oklahoma City GM plant before they closed it down. That plant produced the Envoy and the Trailblazer (mid-sized SUV’s). When gas prices went over $3 a gallon you could hardly give those SUV’s away - they got around 15 MPG in town.
I can’t understand why GM isn’t producing cars getting 50, 75, and 100+ MPG. I drive a 2000 VW Jetta turbodiesel that gets 55 MPG on the highway. If GM was producing cars with this kind of fuel efficiency, I’m sure more people would be buying.
GM needs to go completely go non-union, take a long, hard look at Toyota’s success, trim expenses to the bone, get lean and mean, and dramatically raise the fuel efficiency in their vehicles.