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View Full Version : GM posts a $1.3 billion profit in the Second Quarter.


quagmire
Aug 12, 2010, 07:04 AM
GM has released its second quarter results showing another quarter of profitably and positive cash flow. Revenue was at $33.2 billion and a net income of $1.3 billion. GM has $32.5 billion on hand right now.



http://media.gm.com/content/media/us/en/news/news_detail.brand_gm.html/content/Pages/news/us/en/2010/Aug/0812_earnings

rdowns
Aug 12, 2010, 07:11 AM
I'm sure we'll be hearing of the accounting tricks used to show this profit in a day or two.

QuantumLo0p
Aug 12, 2010, 01:05 PM
I'm sure we'll be hearing of the accounting tricks used to show this profit in a day or two.

No need for any accounting tricks, just the need for the whole story rather than censored news that is typically spoon fed to the American public. The entire story is GM, sometimes called Government Motors, is still massively in debt to the taxpayers so the latest news of a profit really is not a profit.

Also, all the hype about the Volt does not include sales projections that would be absolutely dismal without government rebates (huge tax-payer cash transfusions). IMO nothing has really changed; the general feeling among people who know all the details is they are adamantly anti-GM and will never purchase another GM again. Ever. A very possible scenario in the near future could be a double dip recession which will put the final nails in GM's coffin, which is what should have happened before the tax payers were forced to pay for a massive bailout. Right now GM has one foot in the grave and the other is on a banana peel. Obama claims there would be many more people out of work if that were to happen but history says the rest of the market would pick up where GM left a void. This is undeniable; it happens on a daily basis in our market. Money wise, it would be much cheaper for the tax payers to assist some displaced workers rather than keep an ailing has-been car maker on life support.

Realistically, with all the high quality car makers manufacturing state side, the consumer has more choices than ever when it comes to choosing a new car brand.
:)

cantthinkofone
Aug 12, 2010, 09:02 PM
No need for any accounting tricks, just the need for the whole story rather than censored news that is typically spoon fed to the American public. The entire story is GM, sometimes called Government Motors, is still massively in debt to the taxpayers so the latest news of a profit really is not a profit.

Also, all the hype about the Volt does not include sales projections that would be absolutely dismal without government rebates (huge tax-payer cash transfusions). IMO nothing has really changed; the general feeling among people who know all the details is they are adamantly anti-GM and will never purchase another GM again. Ever. A very possible scenario in the near future could be a double dip recession which will put the final nails in GM's coffin, which is what should have happened before the tax payers were forced to pay for a massive bailout. Right now GM has one foot in the grave and the other is on a banana peel. Obama claims there would be many more people out of work if that were to happen but history says the rest of the market would pick up where GM left a void. This is undeniable; it happens on a daily basis in our market. Money wise, it would be much cheaper for the tax payers to assist some displaced workers rather than keep an ailing has-been car maker on life support.

Realistically, with all the high quality car makers manufacturing state side, the consumer has more choices than ever when it comes to choosing a new car brand.
:)

If I could choose a half ton truck it would be a chevy. Four door, 4x4, LT, white. Had one at the dealer in the show room when I was last in there (tiling a sales guy's floor).

My next car will not be a Acura/Honda. I've worked on them for too long. Cannot stand them anymore. Expensive parts, small working areas. Expensive parts.

I hope to buy a 02 or newer Tacoma TRD crew cab with in a year. Try a yota out for a few years.

Lord Blackadder
Aug 13, 2010, 11:46 AM
GM is still in very heavy debt, but the positive news is they are making short-term profits again, so if they can sustain that they will begin to climb out of the giant hole they dug for themselves.

I am still no fan of GM, but the hope is that their recent crisis will make them a better manufacturer of cars in the long run. I'm not holding my breath for it, but there's always hope.

Obama claims there would be many more people out of work if that were to happen but history says the rest of the market would pick up where GM left a void. This is undeniable; it happens on a daily basis in our market. Money wise, it would be much cheaper for the tax payers to assist some displaced workers rather than keep an ailing has-been car maker on life support.

You make it sound like all of GM's employees and subcontractors would find work somewhere else without skipping a beat, which could not be farther from the truth. I don't doubt that "the rest of the market" would gain by GM's disappearance, but don't forget that Ford and Chrysler have laid off or idled thousands of workers too: these people would get their job back to fill the "void" in car demand left by your hypothetical disappearing GM, not the laid off GM workers.

I'm not convinced that keeping GM alive was the best idea, but I'm also not convinced that just letting them disappear would have been as quick and painless as you seem to think. There would have been repercussions.

Realistically, with all the high quality car makers manufacturing state side, the consumer has more choices than ever when it comes to choosing a new car brand.
:)

Most of those are foreign car manufacturers who built factories here because of our import regulation. Surely you can't be referring to the Big Three?

quagmire
Aug 13, 2010, 12:18 PM
GM is still in very heavy debt

GM has $8.2 billion in debt(down from $14.2 billion) as of the Second Quarter. Ford on the other hand has $27 billion in debt( down from $34 billion). GM also has $32.5 billion in cash.

Now I know a lot of people are going to bring up the $42 billion the government gave GM, but that is money that they are not responsible for( besides performing well to keep their stock value high when they issue the IPO which they are so far). That $42 billion is in equity and will be repaid via the Treasury selling their shares in GM. It all comes down to now is how much GM is valued come the IPO and how well can GM maintain that value or increase it so the $42 billion will be returned with maybe even a decent profit( as the Treasury isn't going to sell all 61% of their stake at once. It would murder the stock value).

What is encouraging is that GM has improved their marketshare despite shedding 4 brands. In the first quarter they had a 18.4% marketshare and in the second quarter, they now have a 19.4% marketshare. A lot of experts expected a drop considering that it did drop back when GM killed Oldsmobile and that was a slow phasing out vs emergency shedding of Pontiac, Saturn, Saab, and Hummer.

Sdashiki
Aug 13, 2010, 12:41 PM
How can you be billions in debt and have billions in cash on hand?

Lord Blackadder
Aug 13, 2010, 01:13 PM
Now I know a lot of people are going to bring up the $42 billion the government gave GM, but that is money that they are not responsible for( besides performing well to keep their stock value high when they issue the IPO which they are so far).

That's our money. So I'm not going to let them forget about it!

That doesn't mean we need to punish them further, but they need to be mindful of the fact that, as far as the American public is concerned, they are on probation.

A Mac Gamer
Aug 13, 2010, 09:38 PM
I think Chevy will continue to do well. The new Cruze that is coming out will be better than any other car in the segment until the 2012 Ford Focus comes out. Those two cars I'm predicting will be best in segment.

Lord Blackadder
Aug 14, 2010, 12:39 PM
I think Chevy will continue to do well. The new Cruze that is coming out will be better than any other car in the segment until the 2012 Ford Focus comes out. Those two cars I'm predicting will be best in segment.

Ford threw away a chance to dominate the compact car segment with the Euro Focus that they refused to bring over here. Instead, we limp along with poorly facelifted versions of the original '99 Focus. It was a great car 10 years ago. Now it's just old.