Automotive News, Media & Press - Gm earnings down but still ok

http://www.freep.com/article/20111109/BUSINESS0101/111109011/GM-s-3Q-earnings-drop-15-?odyssey=tab|topnews|text|Auto%20news

"still ok?"

They need to make some pretty big changes. The biggest indicator is their low margin. Wasn't the idea of the bailouts to cut costs in order to become profitable?

Revenue up, profit down. Slipping back to old GM faster than expected?

"still ok?"

They need to make some pretty big changes. The biggest indicator is their low margin. Wasn't the idea of the bailouts to cut costs in order to become profitable?

Revenue up, profit down. Slipping back to old GM faster than expected?


at least they made money. this economy isnt great so dont expect any miracles.


really, i wouldnt lose any sleep if any if not all of the big three went away because theyve been run so poorly for decades.

at least they made money. this economy isnt great so dont expect any miracles.


really, i wouldnt lose any sleep if any if not all of the big three went away because theyve been run so poorly for decades.

Not losing any sleep its just sad that this thing was pitched like the government would make a profit LOL. What a fucking joke. The stock would have go up like 2.5 times its current price to break even.

Go figure, they are always fucking up one thing or another. 5 years and I think dodge and Chevy will go bust...again

Not losing any sleep its just sad that this thing was pitched like the government would make a profit LOL. What a fucking joke. The stock would have go up like 2.5 times its current price to break even.

the whole thing is really a joke. but now theres no choice but to let things play out.

This is not surprising. I won't go any further, but some key ratios on their financial statement have not changed.

Yea, these companies are a ways from being outta the woods. They need to make some major changes to bring their r&d costs down. Bottom line is they are building cars for a buying public that doesnt have a large amount of income to buy their cars and suvs. They have to start pulling back from the luxury options a bit. Im sure new focus owners can get along just fine without it parallel parking for them

I'll contest that they are doing a better job of building affordable cars. That is evident in the new Chevy Cruze and Malibu, as well as the base Equinox. All of those vehicles are solid vehicles and start at a pretty reasonable base price. The only way to really lower the selling price anymore is to eliminate some of the safety elements, but DoT won't allow that. So adjusted for inflation, I think the pricing is right.

The problem is what you touched on - a buying public that is choosing to be more frugal with their spending. Banks are not lending (despite what the media says), and a lot of people are not willing to jump into a new vehicle note if the security of their job is the slightest bit in question. And there are some people, like me, that are using this time period to pay down debt and build savings. That's something that hasn't happened in this country in a long time.

If GM can find a way to run lean for the next 4-6 years, I think the sales will come back and their financial ratios will fall into place. These next few years will not be kind though, no matter how great the vehicles are that are being produced.

Well regarding the banks not lending..I just bought a newer used truck a couple months ago and had no trouble getting a loan for it nor was a getting a flack for looking at a new ruck as well so if it is happening like you say, im not not seeing much evidence personally.

If GM can find a way to run lean for the next 4-6 years, I think the sales will come back and their financial ratios will fall into place. These next few years will not be kind though, no matter how great the vehicles are that are being produced.

This. They are producing vehicles that people want and selling them at a price they will pay but their costs are still too high. Lower costs and sell at least the same volume and they'll start doing well.

Well regarding the banks not lending..I just bought a newer used truck a couple months ago and had no trouble getting a loan for it nor was a getting a flack for looking at a new ruck as well so if it is happening like you say, im not not seeing much evidence personally.

Personal experiences will vary, but a lot of what I'm seeing from clients is that banks aren't eager to lend.

This. They are producing vehicles that people want and selling them at a price they will pay but their costs are still too high. Lower costs and sell at least the same volume and they'll start doing well.

they cost US 42 billion. maybe they should pay that down first. id say thats their biggest expense.

The other concern I see is that GMs most affordable vehicles are a small fraction of what the rest of the fleet offers. The US companies are still dominated by truck and suv lines. I looked at a 2011 model last sept and wasnt getting much satisfaction from rebate offers. Just didnt seem like buying a new one could beat buying a 2yr old truck.

IF GM would let me use my points id buy a car from them.