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DETROIT -- Continuing a recent trend, most of General Motors' first-quarter earnings came from its finance subsidiary, General Motors Acceptance Corp.

GM on Tuesday reported net income of $1.28 billion from continuing operations on sales of $47.78 billion. In the first quarter of 2003, GM earned $1.03 billion on sales of $47.15 billion.

This year's results included $786 million in net income from GMAC, up from $699 million a year ago. Global automotive operations earned $611 million, up from $546 million in the year-ago quarter.

GM first-quarter 2004 automotive profits were concentrated in North America and Asia Pacific.

In North America, the automaker earned $451 million, down from $546 million last year.

Even though GM's U.S. car and truck sales rose in the first quarter, the automaker cut its North American production by 7 percent as automaker inventories of unsold vehicles mounted.

Vehicle production directly impacts earnings because automakers count revenue from new vehicles when they are built rather than when they are sold by dealerships.

GM and the rest of the automotive industry have spent progressively more on incentives over the past year. GM spent an average of $4,266 per vehicle sold in the United States in March, up from $2,915 per vehicle in March last year, according to Autodata.

In Asia Pacific, GM earned $275 million, compared to $75 million a year ago, due to strong results from its China joint ventures, and smaller losses from its stake in the Korean automaker GM Daewoo Auto & Technology.


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Hmmm.....mighty GM earned 1.3 bill in profits and Ford nearly 2 bill.

Guess GM's quest for market share is a costly one!
 

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Originally posted by laserwizard@Apr 21 2004, 11:00 PM
Hmmm.....mighty GM earned 1.3 bill in profits and Ford nearly 2 bill.

Guess GM's quest for market share is a costly one!
Don't forget the ton of new models under development... that costs some major bucks! ;)
 

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Originally posted by cyboexpo2002+Apr 22 2004, 10:55 AM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (cyboexpo2002 @ Apr 22 2004, 10:55 AM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-laserwizard@Apr 21 2004, 11:00 PM
Hmmm.....mighty GM earned 1.3 bill in profits and Ford nearly 2 bill.

Guess GM's quest for market share is a costly one!
Don't forget the ton of new models under development... that costs some major bucks! ;) [/b][/quote]
And don't forget the General wants to be out of the incentive game, but again this year all manufactures are chasing thier lead, I mean $5750 on a $28000 Tracker or over $5000 on a $30000 Venture, when will it end?
 

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Originally posted by doh+Apr 22 2004, 03:49 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (doh @ Apr 22 2004, 03:49 PM)</td></tr><tr><td id='QUOTE'>
Originally posted by [email protected] 22 2004, 10:55 AM
<!--QuoteBegin-laserwizard
@Apr 21 2004, 11:00 PM
Hmmm.....mighty GM earned 1.3 bill in profits and Ford nearly 2 bill.

Guess GM's quest for market share is a costly one!

Don't forget the ton of new models under development... that costs some major bucks! ;)
And don't forget the General wants to be out of the incentive game, but again this year all manufactures are chasing thier lead, I mean $5750 on a $28000 Tracker or over $5000 on a $30000 Venture, when will it end? [/b][/quote]
it'll end when these models are gone! in the case of the tracker it is WAY overpriced to begin with, so incentives bring it to where it should be. $28,000 for a tracker? ridiculous really. they're asking CRV / RAV4 prices for samuri-ish hardware.

but laserwizard makes a good point... ford is performing VERY well so far this year. and they have a buncha new models coming out, so i don't think that's the excuse why GM recorded lower profits than ford.
 

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Originally posted by paul8488@Apr 22 2004, 04:55 PM


but laserwizard makes a good point... ford is performing VERY well so far this year. and they have a buncha new models coming out, so i don't think that's the excuse why GM recorded lower profits than ford.
Key word here is COMING, the only one that is here is the F-150 which by the way does not have as large of incentives as GM or Dodge, or as high of a profit margin "so Ford tells us"
 

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The difference is Ford and Chrysler HAVE to get out of the incentive game. GM simply has lower costs and given their surprising profit could probably keep these incentive levels up forever.

Ford shouldn't be complacent since I'd guess more than half of that profit is because of Ford North America (the rest being Volvo and Mazda - the rest is brakeing even), and most of that being because of the trucks and SUVs. If GM does a decent redesign and becomes competative again that will really put the pressure on.
 
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