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Wagoner May Say GM Lost $2 Billion on Leases for SUVs



July 31 (Bloomberg) -- Collapsing values of leased sport- utility vehicles may force General Motors Corp. Chief Executive Officer Rick Wagoner to announce $2.3 billion in losses tomorrow on top of more than $1.4 billion that analysts have forecast.

Losses on so-called residual values of the vehicles may also prompt GMAC LLC, partly owned by GM, to ``significantly'' curtail leasing, said Lehman Brothers analyst Brian Johnson. Leasing accounts for 28 percent of the Detroit-based automaker's U.S. sales this year.

Chrysler LLC said it would stop leasing and Ford Motor Co.'s credit unit last week reported a $2.1 billion pretax writedown for losses on the transactions, twice what analysts forecast.

``It's surprising how quickly these values have fallen off a cliff,'' said Mirko Mikelic, senior portfolio manager at Fifth Third Asset Management in Grand Rapids, Michigan, which oversees $22 billion in assets, including GM bonds.

The automaker's leasing loss may exceed $1 billion, he said. ``Residual values are going to be the wild card for GM in the quarter.''

Exiting or limiting leasing may further thwart Wagoner's drive to end losses that totaled $54 billion since 2004. His strategy has been to cut manufacturing costs and shift GM's emphasis to cars from trucks, which make up about 60 percent of U.S. sales.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1TUqyJPPdgM
 

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Discussion Starter · #2 ·
Wow, Wagoner has really aged since he became CEO. He used to look so youthful and vibrant. Now he looks like death.
 

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Wow, Wagoner has really aged since he became CEO. He used to look so youthful and vibrant. Now he looks like death.
I dare say he's been dealing with the same kind of stress levels that the President has to deal with. That and that picture is less than flattering.
 

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Yea we already got word- Tomorrow is end of leases on all 2008 Trucks and SUV's, Yukons, Sierra, Envoy, TBlazer, Tahoe, Silverado, etc.

This is 2 months earlier than normal, usually they give us thru September to lease out current model year.....

BPG Sales
Detriot Area.
 

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lost 2 Bill on SUVS and $60,000,000,000 on him running the joint.
 

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Rick at its best. Just making excuses for billions in losses. This is the man who keeps telling us that 15k vots per year will save gm.
 

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Wow, Wagoner has really aged since he became CEO. He used to look so youthful and vibrant. Now he looks like death.

he hasn't gone nearly as far downhill as the company has.
 

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So what, I'm supposed to feel sorry for him because he's aged? The guy has been making millions of $ a year while GM has gone down the toilet. Oh, poor Ricky! If/when he finally gets fired, he'll leave with a golden parachute. He's got enough money to pay for a facelift every 6 months if his appearance matters that much.

DUKE SUX!
 

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So what, I'm supposed to feel sorry for him because he's aged? The guy has been making millions of $ a year while GM has gone down the toilet. Oh, poor Ricky! If/when he finally gets fired, he'll leave with a golden parachute. He's got enough money to pay for a facelift every 6 months if his appearance matters that much.

DUKE SUX!
You would be surprised by how little Rick Wagoner makes. I believe it is less than 4 million a year including all bonuses. That's running a company the size of GM.
 

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he hasn't gone nearly as far downhill as the company has.
Too funny. Sadly, it's true.

You would be surprised by how little Rick Wagoner makes. I believe it is less than 4 million a year including all bonuses. That's running a company the size of GM.
Rick made $4.8 million in FY 2007. His base salary moves up from $1,558,333 in FY 2007 to about $2.2 million in 2008. In 2007, he also posted 2,177,628 unexercised options and 833,332 unexercisable options. No, it's not a lot of money for a company the size of GM, but it is a lot considering how incredibly pooly GM has been doing for the past six years, too.
 

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Too funny. Sadly, it's true.



Rick made $4.8 million in FY 2007. His base salary moves up from $1,558,333 in FY 2007 to about $2.2 million in 2008. In 2007, he also posted 2,177,628 unexercised options and 833,332 unexercisable options. No, it's not a lot of money for a company the size of GM, but it is a lot considering how incredibly pooly GM has been doing for the past six years, too.
the man has virtually bankrupted General Motors. he's not worth even FIVE CENTS. in fact, GM would have been way further ahead to have paid RIR ONE BILLION to go away five years ago.
 

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the man has virtually bankrupted General Motors. he's not worth even FIVE CENTS. in fact, GM would have been way further ahead to have paid RIR ONE BILLION to go away five years ago.
So you know for a fact that who ever would have replaced him 5 years ago would have saved GM?? Or that the company would have been in any better shape than it is now, your not there in his office day to day seeing everything that he has to deal with, im not defending him cause im not there so i dont know 100% that he isnt doin his best, for all you know he may have even helped GM stay around a bit longer till all there new contracts kick in that are supposed to save the company tens of billions
 

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Isn't Ricky a beancounter by training? And he couldn't foresee this. I swear, sometimes it seems American corporations are run by apes.
 
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