GM posts $15.5 billion 2nd-quarter loss

[Odin]

I do think Rick needs to go, fresh blood is needed. This size loss is just a joke, anyway you cut it, even if it's only theoretical. It's only 15000 million..... lol

[Ming]

Isn't that 10 TIMES what was predicted just a couple of days ago? Jeebus.

Originally Posted by Odin

I do think Rick needs to go, fresh blood is needed. This size loss is just a joke, anyway you cut it, even if it's only theoretical. It's only 15000 million..... lol

I still like my "wired geek" idea:

$11: GM Stock Falls Hard At Market Open On Goldman Downgrade

Or a Steve Jobs like messiah who can make GM hip overnight in the eyes of people who today would never consider buying Chevy, or even Cadillac.

Think of it, the equivalent of a hysteria inducing iPod or iPhone at Chevrolet (or some other big volume GM brand) dealers, instead of catering to the traditional GM customer.

I know, I know it'll never happen. I should just shut up and let Bob and Rick run the company into the ground because only they know what the American consumer really wants. More 8-passenger crossovers.

[wescoent]

Originally Posted by Psionic Wibbly

Holy moly!

are these real losses or "paper losses"

TTAC is gonna be jumping up and down with excitement!

Some paper, some one-time charges, and the rest operational losses.

Analysis: GM Q2

$15.5 billion loss on $38.2 billion in revenue.

$3.6 in cash burned, with $21 billion in cash and $5 billion in credit facilities remaining

$1.6 billion in write-downs

$3.3 billion in worker buyouts

$6.3 billion in operational losses

Analysis: Ford Q2

$8.7 billion loss on $38.6 billion in revenue.

$2.1 billion in cash burned, $26.6 billion in cash remaining

$2.1 billion in lease write-downs

$5.3 billion in North American truck plant value write downs.

$1.0 billion in operational losses

[chrisbenz]

Originally Posted by likearock00

Ouch. I hate to say it, but today is going to be a great day to buy stock!

lol how may times have I head that about GM

[wescoent]

The truly frightening thing about this is that this loss is AFTER GM has reduced its exposure to GMAC by over 50%.

My general opinion is that this quarter was as bad as it was because everyone is in a mass panic about housing and gas prices. Lots of home equity has been wiped out, and high gas prices are pinching people's day to day wealth, so people are increasingly likely to trade in their SUV on a low-profit small car, or simply keep driving their trusty current vehicle than splurge on something new and cool.

Perhaps the worst is over, but who knows.

I threw Ford in there for comparison, because I remember a comment last week about how Mullally is just as worthless as Rick due to Ford's loss.

Oh REALLY?

[Hurricane]

Tough market right now...not only is BMW having issues, Nissan's profit is down, too (at least they are still in the black, though!).

Also on Friday, Nissan reported a 42.8% fall in its three month profits.

Net profit fell to 52.80bn yen ($491m; £248m) between April and June, compared with 92.31bn in the same period of 2007.

"In the face of the severe operating environment, Nissan remains resilient but cautious on the outlook for our industry," said chief executive Carlos Ghosn, who also runs Nissan's French partner Renault.

Nissan said it was trying to limit the effects of the slowing US car market by raising prices, cutting jobs and reducing truck production

http://news.bbc.co.uk/2/hi/business/7537283.stm

[Buickman]

someone help me with the math. how can one stay in business when the quarterly loss is more than twice the company's valuation?

and Red Ink Rick says he has the right plan? the spin keeps coming as the losses keep flowing. and guess what? this isn't the end.

[prototype66]

same here
http://www.gminsidenews.com/forums/f...general-67522/

[CamaroCrazy]

I'm on board with Buickman. I look at Wagoner and see what he has done, and not done for this company. He based his turnaround plan on sales of high margin SUV's and trucks and bet that gas prices would remain stable. The next wave of GM products are all big crossovers with few new cars or updates to cars. While some things in the market are beyond Rick's control, I think that if you bet and you bet wrong, you lose. Rick should not be able to keep saying "Oops, bad results here. Well, moving on to the next quarter....".

The company is burning through cash and with every event, its more of the same: cut jobs, cut production, don't worry, we'll be fine in 2 years. Wasn't that the story in 2005? GM under Rick's watch has been a sinking ship. That is becoming more and more apparent every day. I am really fearing the worst now. The internal and external pressures are killing this company. I hope I'm wrong, but I think its going to get a lot worse. Rick should go. Replace him with whom, I don't know. Is Fritz Henderson the right guy, right now? Or do we need to find a Mulally? Hey, whats Lee Iacocca up to?

[wescoent]

Originally Posted by Buickman

someone help me with the math. how can one stay in business when the quarterly loss is more than twice the company's valuation?

and Red Ink Rick says he has the right plan? the spin keeps coming as the losses keep flowing. and guess what? this isn't the end.

Because the stock price has absolutely no effect on the company's operations.

[Ambalanche]

WOW!! Unbelieveable! Are there going to be "one time charges" every quarter? That's really all I can say!

[Buickman]

Originally Posted by wescoent

Because the stock price has absolutely no effect on the company's operations.

no but operations effect the share price. standing by prediction of $5 by mid August.

[dindak]

Scary but I think everyone knew it was going to be a lot worse than "expectations".

[Ambalanche]

Originally Posted by dindak

Scary but I think everyone knew it was going to be a lot worse than "expectations".

Not THAT much worse!

[wescoent]

Originally Posted by Buickman

no but operations effect the share price. standing by prediction of $5 by mid August.

I wonder if the UAW VEBA would be interested in buying GM...