[neshapop]

By TOM KRISHER and DEE-ANN DURBIN, AP Auto Writers

DETROIT - General Motors Corp. says its losses widened to $15.5 billion in the second quarter as North American sales plummeted and the company faced expenses due to labor unrest and its massive restructuring plan.

It's the third-largest quarterly loss in company history.

The company says the loss includes $9.1 billion in one-time charges, including $3.3 billion for the buyouts of 19,000 U.S. hourly workers.

The second-quarter loss was $27.33 per share, compared with net profit of $891 million, or $1.56 per share for the same period a year ago. GM reported revenues of $38.2 billion, down $8.5 billion from a year ago.

The loss also includes $1.3 billion worth of write-offs because of a decline in value of GMAC Financial Services' portfolio of trucks and sport utility vehicles. Those vehicles' sales have plummeted due to high gas prices.

http://news.yahoo.com/s/ap/20080801/ap_on_bi_ge/earns_gm

 

[ksr]

holy cow

 

[member12]

Wow.

That's pathetic.




Que the guy from Michigan with the "it's not as bad as it looks" post.



The American car market is oversaturated, and GM must learn to compete or at least limit their loss of market share.

 

[throwback]

When will Rick & Co. realize their latest plan is not working? The stock price will go down again, and it wont surprise me if the large investors start the push to change the top management. No company can keep losing money like this and stay in business.

 

[likearock00]

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

 

[ksr]

Hopefully this guy's optimism is well founded...

http://www.freep.com/apps/pbcs.dll/article?AID=/20080801/COL06/808010407/1014/BUSINESS01

The fact is that these numbers weren't unexpected. With the way they book revenue when the vehicles are built, and they're cutting production and offering buyouts, it had to happen.

In large part, this does repreresent the costs of the necessary steps to reshape GM for the future.

 

[montrealvue]

Painful, but not surprising.

...time for GM to start begging Washington for cash...

 

[WishIhadatruck]

A huge supplier strike, employee buyouts, a down market overall and a huge shift from profit heavy trucks/suv's to cars that GM will continue to struggle to make money on until the UAW contract changes fully take affect are killing them. Add that to the fact that their fuel efficient car offerings can easily be described as weak it is no wonder they are hurting.

 

[Maas Oyama]

Holy moly!

are these real losses or "paper losses"

TTAC is gonna be jumping up and down with excitement!

 

[Hurricane]

Without the one-time charges, GM lost $6.3 billion, or $11.21 per share. Twelve analysts surveyed by Thomson Financial predicted a $2.62 per share loss on revenue of $44.57 billion.

Good heavens!

North American revenues fell by nearly $10 billion to $19.8 billion for the quarter as sales in the region fell 20 percent.

Like driving off a cliff! Ouch!

 

[rozz]

Fock and Holy Cow Batboy!!!

 

[Hurricane]

I wonder why this hasn't hit the front page yet - this is probably the biggest news story of the day, LOL...

 

[prototype66]

Another heavy hit for the General

Not sure if this was posted yet, sorry if it's a repost.

http://news.yahoo.com/s/ap/20080801/ap_on_bi_ge/earns_gm

DETROIT - General Motors Corp. said Friday its losses widened to $15.5 billion in the second quarter as North American sales plummeted and the company faced expenses due to labor unrest and its massive restructuring plan.

 

[Buickman]

what's pathetic is how the shareholders and Board continue to support Red Ink Rick. better watch out if you live off of a GM pension.

 

[FenwickHockey65]

Can't wait to see what this'll do to GM's stock price in 33 minutes.

 

[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.

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:

http://www.gminsidenews.com/forums/...ket-open-goldman-downgrade-66070/#post1438072

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]

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]

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?