GM Reports Preliminary Second Quarter Financial Results, Beats Estimates

[ford&holden]

Originally Posted by asim

I bet the UAW officials are having a field day right about now. First Ford reports a profit, now GM does. There are going to be even more hardheaded about concessions now.

Most of the profit for both GM and Ford was made outside NA, they still have a competitive disadvantge in NA, that fact has not changed.

[redimpss5]

The posting feast goes like this!! Americas consumers are stupid and the rest of the world is smart!! Why does the other countries of the world buy the best vehicle made and lame ass dork's that live here don't? Even the clown on CNBC today that just loves Toyota had to report something he could not figure out, because he is one of those lame sheep also!

[Lichtronamo]

Originally Posted by KUZCO

almost a billion in profit BUT they want us to give up benefits very interesting, maybe they shouldve lied about their profits

Those profits didn't come from UAW made products, they came from overseas. GM still needs to reduce its labor capacity and costs at home if NA is to be profitable again.

[GM-10]

Originally Posted by KUZCO

almost a billion in profit BUT they want us to give up benefits very interesting, maybe they shouldve lied about their profits

What rhymes with Boron?

[stevecmh]

overall good news.. money in the plus side is always good

[TriShield]

This doesn't mean the company is profitable nor will it do anything to alleviate their fast cash burn to stay in business. They using billions of dollars to try and stay afloat and it isn't working.

Plus, this news will likely spur the UAW to dig in their heels regarding concessions. Concessions GM desperately needs to be sustainable.

Meanwhile, foreign automakers have taken the majority share of the US new car market.

[GM-10]

Originally Posted by TriShield

This doesn't mean the company is profitable nor will it do anything to alleviate their fast cash burn to stay in business. They using billions of dollars to try and stay afloat and it isn't working.

Plus, this news will likely spur the UAW to dig in their heels regarding concessions. Concessions GM desperately needs to be sustainable.

Meanwhile, foreign automakers have taken the majority share of the US new car market.

No...It is neither a death warrant as you suggest or a sign that 'happy times are here'--as many others suggest.

It is actually neutral news. There is some good and some bad.

That's what it is and nothing more.

Can you really justify this statement:

Originally Posted by TriShield

...nor will it do anything to alleviate their fast cash burn to stay in business.

I would argue that is blatantly untrue.

[pontiacfan]

Originally Posted by paul38469

GM does not build any vehicle without an order, unlike what Chrysler was doing. Either a customer order or dealer order is required. Yes, the sale is booked for financial purposes once the order is filled, but they haven't increased production of unassigned units, or as far as I understand, production at all. So, this is not the reason for the improved position. It is true that they may be forced to cut production of GMT-900s if sales tank and that could hurt future quarters, but that is not what is going on here.

It is interesting to notice that they have made about or over $ 200 million in each global region except North America where they have made a bit less than that. I think that is a good sign. Particularly in Europe where they had been struggling. That points to the idea that the restructuring in North America will yield results, just as the painful restructuring in Europe has finally started to really gain traction. Things could change dramatically, especially in North America, depending on many factors, including gas prices, but there are some positives to see here in these results.

You are incorrect about GM not building products US dealers haven't ordered. Here in Canada its called product stock. Currently they have 67 2007 models and 137 2008's. The 2008's are mostly optra's and aveo's. The 07's for the most part are inventory from when dealerships change hands and shows and exhibit cars and trucks. Just my 2 cents.

[TriShield]

Originally Posted by GM-10

I would argue that is blatantly untrue.

I will enjoy seeing you make excuses for GM when they finally have to declare bankruptcy.

[joemac]

Originally Posted by Perian

As of 07-01-07 GM had 321,300** T900s* in stock, a 142** day supply based on the dismal selling rate in June. Last week 20,310** T900s were produced. Unless the 0%/60 incentive that was announced yesterday has a large effect, the inventory number will probably rise, even with the just concluded two week vacation period.

My point is, sooner or later, GM must slow T900 production and that will have a marked effect on profit performance.

*T900 = Silverado/Sierra line of pickup trucks.
**Source: Automotive News Data Center.

Originally Posted by joemac

So what happens to that GMT-900 142 day stock if the UAW negotiations don't go as planned? GM knows right now what considerations they are going to ask of the UAW during the negotiations. Might they prepare dealer stock in leiu of? Would we all call them dumb and stupid if they didn't prepare and incur a 30/60/90 day strike with no forethought on amp'ing up inventory? Certainly would. Might they not be as dumb as we make them out to be? Maybe, maybe not.

Well Ok. Was GM doing the right thing in ramping up inventory? It would now appear so.