General Motors posts $15.5-billion quarterly loss

[Desert Dan]

This is bad.
How long can this go on?

General Motors posts $15.5-billion quarterly loss
From the Associated Press

4:10 AM PDT, August 1, 2008

DETROIT ? General Motors Corp. said Friday its losses widened to $15.5 billion in the second quarter as North American sales plummeted and the company faced expenses due to labor unrest and its massive restructuring plan.

The loss of $27.33 per share is the third-worst quarterly loss in the automaker's history. In the same period a year earlier, GM recorded a net profit of $891 million, or $1.56 per share.

Revenue for the April-June period was $38.2 billion, down $8.5 billion from a year earlier.

The company said its loss included $9.1 billion in one-time charges, including $3.3 billion for the buyouts of 19,000 U.S. hourly workers who left at the end of June and $2.8 billion in liabilities related to Delphi Corp., its former parts division.

It also included $1.3 billion worth of write-offs because of a decline in the value of GMAC Financial Services' portfolio of leased trucks and sport utility vehicles. GM owns 49% of GMAC, which has suffered big losses when leases end and it tries to sell the now-unpopular vehicles at depressed prices.

GM also took a $197 million charge related to the settlement of a nearly three-month strike at supplier American Axle and Manufacturing Holdings Inc., which shut down more than 30 GM plants. GM agreed to help American Axle fund worker buyouts as part of the settlement.

Without the one-time charges, GM lost $6.3 billion, or $11.21 per share. Twelve analysts surveyed by Thomson Financial predicted a $2.62 per share loss on revenue of $44.57 billion.

The $15.5 billion loss is less than half GM's record $38.6 billion loss in the third quarter of last year. That loss was due to a write-down on the taxable value of assets. The second-worst loss was $21 billion in the first quarter of 1992.

GM said its revenues outside North America rose by $1.7 billion to $20.8 billion in the quarter, but those gains were more than offset by losses in North America, where high gas prices and the weak economy have wreaked havoc on the auto industry.

On July 15, GM announced plans to lay off thousands of hourly and salaried workers, speed the closure of truck and SUV plants, suspend its dividend and raise cash through borrowing and the sale of assets.

"As our recent product, capacity and liquidity actions clearly demonstrate, we are reacting rapidly to the challenges facing the U.S. economy and auto market, and we continue to take the aggressive steps necessary to transform our U.S. operations," GM Chairman and Chief Executive Rick Wagoner said in a statement.

http://www.latimes.com/business/la-fi-gm2-2008aug2,0,831059.story (http://www.latimes.com/business/la-fi-gm2-2008aug2,0,831059.story)

[RazM]

Yes, and selling HUMMER will help them... :soapbox:

What a bunch of tools.

[Spuds]

If they'd expedite the drop-top H4 in a hybrid, it could be a HUGE seller with the kids and help pull GM out of the red.

Or they can sell the marq and dig their own hole. :notallthere:

[Desert Dan]

Since the H3 and H3T is made in a Chevy plant GM should keep the Hummer line going.

The R&D has been done and the $$ spent so keeping making the H3 line and get the H4 to market ASAP.

Offer diesels and hybrids.

If GM has to re-badge the H3 line as a Chevy so what, it comes from a Chevy plant anyway?

[RuggedH2]

Has anyone seen the new Chevy commercials.......

Green, green, green. Come on people........ It's a catchphrase!

No room for Hummer in GM's new green world. :rolleyes:

If GM thinks they are going to buddy -up with the Greenie bunch......... I think they are in for an electric shock.

Those greenies are already in bed with Toyota and Honda, and they have been for years....... They are also not the most flag waving patriotic bunch way over there on the left either....... for an American company.

The bean counters and marketing people at GM stink.

This looks like a Dixie Chicks alienating their fan base situation for GM.

Why aren't we drilling for oil here in America again? How many of our own natural resources can we not touch? Why can't we build new refineries and power plants?

Whatever..... Maybe GM can shrink itself to success...... it's the new America.......

49164

[wpage]

Its strange but GM is a victim of thier master, the big oil companys.

GM is really getting screwed by these greedy oil barrons...

And after all GM did for them. What a shame:confused:

[rck0025]

Has anyone seen the new Chevy commercials.......


Why aren't we drilling for oil here in America again? How many of our own natural resources can we not touch? Why can't we build new refineries and power plants? 49164


:notallthere: Let's spend billions of dollars on infrastructure and drilling so that we can have cheaper oil prices 20 years down the road. Clearly a great idea.

[rck0025]

GM is not the only one suffering; The global economy is down as a whole.

On a side note; I heard that GMAC is going to discontinue lease financing in the near future. As the article above suggests, the residuals on their automobiles are less than what was anticipated - what gets me is how this is a surprise.

Go to any bank for financing, and their residual values for automobiles are always far less than the car company's in-house financier.

[RuggedH2]

:notallthere: Let's spend billions of dollars on infrastructure and drilling so that we can have cheaper oil prices 20 years down the road. Clearly a great idea.
Why haven't we developed more refining capability before now? Like for the last twenty years?

Why haven't we been drilling where we know there is oil in America and American waters?

Why do you think?

I think environmental lawsuits and lobbying had a lot to do with that.

What do you propose? That we all buy hybrids? Have you seen a decent hybrid 4x4 that carries 5 comfortably and can survive Moab Rim?

[Minuteman1636]

:notallthere: Let's spend billions of dollars on infrastructure and drilling so that we can have cheaper oil prices 20 years down the road. Clearly a great idea.

Your right....:iagree:

And actually, each of the big three oil companies stated they would have oil flowing within 3 years. The 20 year drama statement is a tool of the liberals to try and scare people away from supporting drilling. 20 years is absolutely false.

I absolutely agree that we should use the resources that are right here in our own country instead of being forced to buy oil from middle-eastern countries because of tree-hugging objection to our country being energy independent.

I absolutely agree that we should develop our own energy infrastructure that employees american citizens instead of providing employment for foreign governments and corporations.

I absolutely agree that we should buy our oil from oil company operations right here in our own country. That would help stop the greatest transfer of american wealth in history (american money going to foreign governments).

So, if you don't support drilling for more oil, don't complain about the gas prices. I have yet to hear anyone, including the left-wing radical environmentalists, propose an energy alternative THAT IS ALREADY AVAILABLE AND AFFORDABLE BY ALL. Not everyone can afford, or wants one of the rollerskate lookin' hybrids that are on the market. They are already overpriced for what you get. I would pay for $10.00 a gallon gas before I would drive a hybrid. I can afford because I live within my means. If I had the choice between spending my $22,000 on an H3 or $22,000 on a hybrid. I would get the H3 without even pondering the options.

If people can't handle the fluctuation of the price of gas, it is because they don't manage their money to begin with.

:soapbox:

I'm done now......Sorry for that. No disrespect meant of implied toward anyone. Just voicing my two cents.

[Dave92270]

...should develop our own energy infrastructure that employees american citizens instead of providing employment for foreign governments and corporations.

..stop the greatest transfer of american wealth in history (american money going to foreign governments).



:iagree: good points!

[rck0025]

Why do you think?




First, I think that high oil prices are moving Americans to consider other forms of energy that have been available for quite some time, but have always been too expensive.

Second, I think that hybrids are not necessarily the answer, and its only a matter of time before their effects on the environment (via their production process and battery disposal - battery acid is not so green) is called into question. So hybrids, for me, are not necessarily the answer. Although, I think their performance post production is something to strive for.

Thirdly, I think that the the big oil companies have more than enough oil to sift through, but are reluctant to refine anything but light sweet crude as it is the cheapest to refine.

Fourthly, I think that the environmental red tape surrounding natural resource extraction in this country would be significantly less if not for the Exxon-Valdez spill, although I also believe that such a future spill is not very likely.

Fifthly, I am a believer in technological innovation to solve this problem. Save the time, money and energy which is supplied to Exxon via our Govt. and develop a more efficient use of resources - say a sugar-ethanol gas type - clean burning, less inefficiency in the production process, and most importantly- exclusive from EXXON Mobil and OPEC.

[rck0025]

[QUOTE=Minuteman1636]Your right....:iagree:

And actually, each of the big three oil companies stated they would have oil flowing within 3 years. The 20 year drama statement is a tool of the liberals to try and scare people away from supporting drilling. 20 years is absolutely false.


I'm done now......Sorry for that. No disrespect meant of implied toward anyone. Just voicing my two cents.[/QUOT

I don't think it would be possible for American oil companies to drill for light sweet crude and have the refining capacity to make a significant change in the price of gas 3 years from now -even if they started while I'm writing this. Even if they did, what would persuade them not to sell the barrels of oil to other nations for a profit? If you can point me in the direction of a study that suggests that new oil exploration, pumping, and refinement can be done at such a level that it would effect the domestic price of gas in three years, it would be greatly appreciated because I need to report such evidence to a congressional hearing.

[SnakeH2]

The US is in the mess because fo the Unions....

[RuggedH2]

Environmental restrictions have kept new refineries from being built in the US since 1976.

We are not drilling for oil in America where we already know there is oil.....environmental restriction.

Oil Sands and Oil Shale in the West are buried in environmental restriction.

Hold any opinion you want.....

I'm not going to believe all this environmental restriction and regulation is good for the economy.

Is someone trying to convince us that more new refineries and more oil supplied from America isn't going to make any difference?

[HummerJim]

Some of the facts on US oil use and the Alaskan pipeline, dated Aug 1,2008.

http://www.tampabay.com/news/humaninterest/article750460.ece