General Motors expects to post a massive 2nd quarter loss on Friday

[montrealvue]

Who isn't posting massive losses nowadays? Take it in stride, in a recession very few post huge gains.

[Buickman]

what else would you expect from a guy named Red Ink Rick?

Lee Majors as the Six Million Dollar Man

Rick Wagoner as the Sixty Billion Dollar Man (that's the shareholder value he's lost).

shame on the Board for supporting him

shame on the shareholders for re-electing the Board

after so many years of decline, how could you expect anything else but continued losses from the same people doing the same things?

dealers forced out of business, suppliers bankrupted, communities suffering, wages cut, jobs lost, benefits eliminated...watch, pensions are next.

perhaps someday the employees, retirees, dealers, suppliers, shareholders, and media will join forces to once and for all rid GM of the incompetent management.

[Ming]

So they build a really cool new plant capable of turning out some great, small displacement, affordable and fuel efficient engines, and then they tell us:

Thomas G. Stephens, General Motors Corp.'s executive vice president, global powertrain and global quality, said at the recent inauguration of the company's new Powertrain Engineering Development Center here that he's delighted with the engine options at his disposal for answering growing demand for better fuel economy. But that's going to mean U.S. customers will have to signal their readiness to accept smaller engines - in effect reversing a long trend for ever-larger engines and more horsepower.

This, after last month GM's 4-cylinder mix was 40%, double what it was in June of 2007, and cars like the Malibu 4-cyl. could not be more popular. This despite people not thinking of GM first when they go shopping for fuel economy.

Do these fools have to be led, kicking and screaming, into everything that doesn't involve an SUV and a V8 (or the bloated V6 crossover equivalent)?

[windvale]

Originally Posted by montrealvue

Who isn't posting massive losses nowadays? Take it in stride, in a recession very few post huge gains.

Pretty much everybody except the Detroit Three...

The situation is getting dire for GM. At this point, if GM doesn't turn it around within the next two years they'll be in bankruptcy. Rick and GM's track record over the last decade tells me that they will not have GM turned around within 2 years...and so I believe Chap. 11 is inevitable.

Recent Dumb comments from GM's leadership team, like the "we'll build small engines when the public signals us they're ready" cry out how out of touch GM's leadership really is...

[rsinsel]

Originally Posted by mgescuro

Now, that cash cow is a downer cow. Where does GM go? They haven't solved their decades long problem of producing small cars in the US profitably. Their cars still significantly overlap. They have too many brands. Their growth markets are international, while they allow North America to flounder.

What else can one expect but losses?

Then tell me this. What is the difference in their business model over seas that they cannot duplicate here?

[rsinsel]

Originally Posted by Ming

So they build a really cool new plant capable of turning out some great, small displacement, affordable and fuel efficient engines, and then they tell us:



This, after last month GM's 4-cylinder mix was 40%, double what it was in June of 2007, and cars like the Malibu 4-cyl. could not be more popular. This despite people not thinking of GM first when they go shopping for fuel economy.

Do these fools have to be led, kicking and screaming, into everything that doesn't involve an SUV and a V8 (or the bloated V6 crossover equivalent)?

Yes!

[Ambalanche]

Originally Posted by windvale

Recent Dumb comments from GM's leadership team, like the "we'll build small engines when the public signals us they're ready" cry out how out of touch GM's leadership really is...

That really bothered me also. What are they thinking to put a statement like that in the press?!!

[377Z]

Originally Posted by likearock00

BTW- didn't the Chinese build our railroads?

Yes, and some of them got docked a day's pay for napping on the job.

[PhishPhood]

Originally Posted by rsinsel

Then tell me this. What is the difference in their business model over seas that they cannot duplicate here?

The key differences between overseas markets and the NA market is the investments and the current mix.

Since they were so highly invested in BOF vehicles in NA, prolly 70+% of their business was in plants that are now being closed, downsized or realigned to make smaller vehicles. Overseas they never had these multi-billion $$ investments in Silverados and Tahoes and Escalades. Their investments there were in very fuel efficient vehicles. In NA they have to recognize losses for the closures and downsizing, overseas they do not.

In addition overseas their very fuel efficient vehicles are roughly akin to our midsized segment here. In Europe they primarily make smaller vehicles with I4s and very efficient diesels where the buying populace is willing to pay $22000 - $30000 for a compact sedan/hatch. Here we just are NOT willing to pay these prices, we want our compacts to be sold for $17000-$20000. In Europe they can make money on $25000 compacts, here they struggle to lose the minimum on $17000 compacts.

In addition with a production mix overseas geared toward smaller more efficient vehicles they now can take advantage of the surge in fuel prices by jacking up the prices of their very good small car offerings....and if production allows it they can sell more too. Here they just don't have offerings good enough across the board, they don't have the right perception by the public and they don't have enough capacity to fill additional orders.

[vanshmack]

I supported what Rick was doing up until about a year ago. It was then that I realized he has no long term vision, indeed, it seems like he's been asleep at the wheel.

Time for a coaching change, and it needs to be fresh blood from the outside.

I'm available. I've run a business profitably. I love cars. And I already own GM vehicles, so there would be no embarrassing Lexus trade-in to deal with.

[2002 Caddy]

Originally Posted by Clownzilla

Might as well put it all in caps. Don't buy GM ever again because of this MASSIVE LOSSSSSSSS! Sell your stock in GM because of this MASSIVE LOSSSSSSSSS! Buy Toyota because GM is going under with this MASSIVE LOSSSSS!!!!!!! Thanks for telling us the truth on the matter all mighty media.

Umm how do you define MASSIVE...
Lets say you come home tonight, your wife says, how was your day at work and you say... Not good I lost $800,000,000 This month....
Is 800,000,000 MASSIVE?

Lets say you get out your calculator and you multiply your monthly losses over 6 months to get you YTD 2nd Quarter loss of about 4,800,000,000...

We are just to shrug this off... Its like Rick goes home and says...
"Hi honey, I'm home, I lost 5 Billion dollars so far this year, whats for dinner... Crap not Lobster again."

Is 4,800,000,000 MASSIVE?

If it isn't WTF is?

[montrealvue]

Originally Posted by windvale

Recent Dumb comments from GM's leadership team, like the "we'll build small engines when the public signals us they're ready" cry out how out of touch GM's leadership really is...

Not sure about the US but Honda sold over 70,000 Civics here in Canada last year (to a population of about 30 million). Honda expects that number to grow exponentially as gas prices continue to rise. GM seems to have no interest in going head to head with the likes of Honda or anyone else "dumb" enough to sell small engined, fuel efficent vehicles successfully. GM needs so seriously wake up and realize the market dictates what sells, not the manufacturer.

[Buickman]

waiting in the wings...Return to Greatness. the time is rapidly approaching.