More GM Bad News

[Dick W.]

From the pages of Automotive News.

GM racks up $4.8 billion net loss for fourth quarter of 2005
Full-year loss totals $8.6 billion

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DETROIT -- General Motors reported a fourth-quarter net loss of $4.8 billion on Thursday, far worse than Wall Street expected.

GM executives listed high costs, shrinking market share and poor SUV sales as reasons for the loss.

It was the fifth straight quarterly loss for GM and brought its losses for all of 2005 to $8.6 billion.

GM executives cautiously forecast improved results for 2006 amid cost cuts and optimism that new products this year will sell well. GM stopped short of giving guidance, though.

"Frankly, the losses are quite clear: They're very large and they're substantially in North America," said CFO Fritz Henderson in a conference call to reporters and analysts. Henderson says GM's losses are "unacceptable" and demonstrate the company's urgency to execute its turnaround plan.

GM's huge losses punctured optimism created by Ford Motor Co.'s better-than-expected results released Monday.

[Collin MacDonald]

Re: More GM Bad News

Sorry but GM has it coming to them...they don't listen to their customers, they continue to push SUVs, they have no after sales customer service, and there products do not meet the standards of other car makers. Simply put they are to snug and stuck up to care...and after abusing customers for years. customers are leaving.

Don't get me wrong, I bought a 05 Silverado truck, but when it came time to buy a small commuter car...the Cobalt and Malibu could not compare to my Mini Cooper....BMW after sales service is excellent, the product is top notch, and I don't even have to pay for oil the first 75K miles....can GM match that...

I am still waiting for a bad part under warrenty for my 05 truck...its been almost a year now, and the service department has order the wrong part twice and twice I have brought the truck in for service only to be told they could not do anything because they ordered the wrong part.... I am still waiting for the part...no call...its been three months.

I rest my case.

[Tracy C.]

Krimeney Papa Smurf..It's bad enough without

having you post it twice..

A bit trigger happy tonight are we?

[Kurt K.]

Re: More GM Bad News

All the auto companies have their turn in the tank.. Some times you miss the market. We all wanted big trucks and suv's until gas went to $2 a gallon. Was not long ago Nissan was having problems and look at Mitsubishi.. It was not too long ago Ford was on top.. Everyone has had issues with dealers domestic and import. I agree GM and Ford missed the mark on small cars, now we want milage. I support American products, even if it cost more. No rice in my garage..

[Collin MacDonald]

Re: More GM Bad News

Kurt,

I respect your position, I own two Corvettes and a Silverado. I only owned two imports my whole life compared to 21 new Chevrolets. Please take no offense, but its the attitude of no rice in my garage that GM takes for granted. Please understand that GM, Ford, and Chrysler, take advantage of the American patriotism...ie "American Revolution" Chevys ongoing sales campaign. They are trying to make you feel guilty to buy an import... I am NOT an import person, but as I stated in my post above, when it came time to choose a commuter car, the MINI COOPER (made in Oxford England) was just plain superior to what Chevrolet was offering...to me a Cobalt is nothing but a warmed over Cavilier, which is one step above the Chevette... Until GM takes it customers seriously because they are losing them by the hundreds then it will be what THEY want to build not what their customers want to drive. Again I respect your comment and your passion to support American products..but I bet you own a Japanese TV and Stero....and camera...

[Dave F.]

Patriot (Lovin' life)

My next collector car will probably be the one I had in high school. A 280Z!

Love my Corvette.

Love my Audi TT.

Love my Mini Cooper S. Well OK, its my wife's now. I bought it without telling her and then she fell in love it and declared it hers.

Don't really love my Toyota 4Runner, because what fun are SUVs, but the thing will probably outlast me it runs so well. Love Toyota engines!

Love the U.S.A.

-Dave

[Terry D.]

Remember Chrysler? Same boat! Have Faith! *NM*

[Bill L.]

Re: Patriot (Lovin' life)

GM went down the tubes when the bean counters took over. They got fat and caved to Union demands.

GM always had the best looking cars up until Roger Smith. Then came the front wheel drive clones in the late 70s through the 80s.

I am not sure who they are using in their focus groups but they need to reconsider.

They are reaping what they have sown. I say this and I own all GM vehicles. (Four) Right now there is nothing in their stable in a rear wheel drive platform that I find attractive.

Hopefully they get their act together or they will lose me to Mercedes or BMW. My wife had an ACCORD that was the worlds most boring vehicle so I have a real aversion to Japanese cars.

Bill

[Donald B.]

Re: More GM Bad News

That "rice" is probably made in the USA by American Workers. The "rice" manufacturer's are publicly traded and some "owners" are American.

[Hank Rossi]

Re: More GM Bad News

Please read Thomas Friedmans column in todays New york Times for some insightful insights into the auto industry. www.nytimes.com

[Jack H.]

IF you've got guts...

and believe in GM's ability to eventually work its way out of the problem, there are some notes on the the exchange (e.g. XGM, GMW) that are paying effective yields in 12% range with a 'double' your money upside to their face value....

[G B.]

What GM needs...

...is better designers and a lot of time. Unfortunately, that costs more than they've got in cash reserves at their current rate of consumption.

Rick (The Arrogant Wimp) Wagoner is going to drive them straight to bankruptcy before heading into the sunset with his fat pension plan. Left holding the proverbial bag will be the shareholders, GM employees / retirees, GM dealerships, and outside parts suppliers. But don't let that put a twist in your panties, Rick. We knew what you were going to do all along.

[Collin MacDonald]

Could future Corvette become TOYOTA?

The NY Time article really shows the poor financial state that GM is in...here is a quote from that article. "The contrast between G.M. and Toyota, which is challenging G.M. for the title of the world's biggest carmaker, could not be more stark. Toyota earned $11 billion in the year that ended in March 2005, and it expects to exceed that when it closes its fiscal year in two months."

Reading between the lines, could TOYOTA make a bid for GM? Not far fetched as one might think.....

[Jean C.]

Re: What GM needs...lower payroll?

Oops, wrong button. I recently read somewhere that the average UAW worker's salary is around $68 an hour. That correct?
Charlie

[G B.]

Re: What GM needs...lower payroll?

Not exactly. The average hourly base pay to UAW workers at GM was reported in the news to be $27 an hour. That's still a really good gig for assembly line work. Nationwide, other manufacturing assembly lines pay an average of $12 an hour.

The real killer is the benefit package that the UAW "negotiated" through strike extortion years ago. The current GM paid pension, medical, and lay-off benefits are from another planet. Ever heard of going into a "Jobs Bank" after losing your job? There you can still receive 95% of your pay from GM for doing nothing for a couple of years. I read in the paper that the Jobs Bank cost GM about $1,000,000,000 last year alone. That's got to hurt.