Posted on 11/28/2018 8:28:43 AM PST by C19fan
When General Motors announced it was cutting up to 14,000 jobs and idling five automotive plants, it justified the massive cuts by citing long-term savings. The cuts would free up $6 billion in cash, for a net savings of $4.5 billion in cash by 2020.
The move will "make General Motors more agile, resilient and profitable" while the economy's still revving, CEO Mary Barra told investors Monday. Wall Street seemed to believe her, with GM's stock rising nearly 5 percent and one analyst on the call congratulating her "on getting in front of the curve here."
But GM hasn't exactly been tightfisted in recent years. The company has spent $10.6 billion since 2015 buying back its own shares, according to filings with the Securities and Exchange Commission. Stock buybacks do nothing for a company's productive capacity. But because buybacks reduce the number of shares on the market and thus make a stock more valuable, they can be popular with many investors as well as senior executives who are paid largely in stock.
(Excerpt) Read more at cbsnews.com ...
The U.S. bailed out GM to the tune of $49.5 billion (loans & stock purchases)...the $11 billion loss to taxpayers was on the sale of the stock (last batch sold in in 2013).
When General Motors announced it was cutting up to 14,000 jobs and idling five automotive plants, it justified the massive cuts by citing long-term savings. The cuts would free up $6 billion in cash, for a net savings of $4.5 billion in cash by 2020. The move will "make General Motors more agile, resilient and profitable" while the economy's still revving, CEO Mary Barra told investors Monday. Wall Street seemed to believe her, with GM's stock rising nearly 5 percent and one analyst on the call congratulating her "on getting in front of the curve here."
With the federal rebate program for electric cars ending, thanks to the success of the Tesla Model 3, it's understandable that GM would scrap the Volt.
With the federal rebate program for electric cars ending, thanks to the success of the Tesla Model 3, it’s understandable that GM would scrap the Volt.
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I believe that only affects Tesla.
“I believe that only affects Tesla.”
GM is closing in on the 200K threshold for ending tax credits.
https://www.hybridcars.com/gm-will-reach-electric-car-tax-credit-limit-year/
Thanks, could easily be, Volt's a hybrid, isn't it.
https://www.fueleconomy.gov/feg/taxevb.shtml
Phaseout — The credit begins to phase out for vehicles at the beginning of the second calendar quarter after the manufacturer has sold 200,000 eligible plug-in electric vehicles (i.e., plug-in hybrids and EVs) in the United States as counted from January 1, 2010. IRS will announce when a manufacturer exceeds this production figure and will announce the subsequent phase out schedule (Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales).
I watched a few more owner/driver vids regarding Tesla Model 3, outstanding information, honest, no witless koolaid drinking, and also no snarking. The $35K price though is only available to residents of Fantasyland, the standard range version works out to about $45K, and the fully tricked out, longer range version about $55K. The software is remarkable, helps plan long trips to take the “filling stations” locations into account.
2018 Monthly Sales Chart
https://insideevs.com/monthly-plug-in-sales-scorecard/
I think Tesla will eventually get below 35k for the Model 3. I look at what’s been done at SpaceX to bring down costs and it’s incredible. Tesla has already brought down costs, and there’s still plenty of room to do so. They are building cars in a “tent” which turned out to be a great idea. SpaceX’s next big rocket is currently being being built in a “tent” also.
I think the planned pickup truck is going to end up being Tesla’s big money maker and a huge headache for the Big 3.
There's talk about a lower-priced model based on the, hmm, Model X I think. There's also a couple more vids that showed up on the Roku YT app in the related vids, about the various electric models (some overlap, one had 7, the other had 10, if memory serves).
People are Buying Tesla Model 3, but Should You Buy a Chevy Bolt
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