Topic: The Detroit 3 cash crunch: How bad is it?

[Triple Bob]

Yep same story on BBC now...

http://news.bbc.co.uk/1/hi/business/7486972.stm

Would the US government rescue them like they did with Chrysler years ago..?  Would it be too big an impact on the US economy to let them go under?

The US government does not have enough money to rescue themselves.

Good point.  Maybe take it out of education, that what Bush seems to like to do.

[toolatecrew]

Sales may be slightly slow right now but GM is still leading the way for total sales in the US and probably around the world as well. Everybody has lost sales due to the gas issues which no car company has any control of. 

HA HA HA

Good one. No its true that no car company controls gas prices but they most certainly control their product mix. Some car companies have lost far far fewer sales than others becuase they produce many fuel efficient small, midsized cars that people want to buy as their main lines while other manufacturers miked the cash cows of big fuel sucking SUV and Trucks until they died

Leading sales is a pretty interesting thing to hang one's hat on if the sales aren't profitable.

Interseting that a company would have massive plant closings just becuase sales are "a little slow"

[ArticSteve]

Maybe take it out of education, that what Bush seems to like to do. 

The Americans have never spent any money on public education.  The US government needs an endless supply of uneducated poor young ppl to support the military and they need an equal amount of really stupid citizens to soak up the war propaganda.  On both counts they have exceeded expectations.

I say trade the domestics one by one for oil credits.   

[drederick]

The General may be heading for Chaprter 11
« on: October 11, 2005, 01:48:06 am » Quote

--------------------------------------------------------------------------------
Delphi Chief Sees GM Bankruptcy Without U-Turn on Wages, Health

 Delphi Corp. Chief Executive Officer Steve Miller said General Motors Corp., his biggest customer, will have to file for bankruptcy if it can't wrest wage and benefit concessions from the United Auto Workers union during their next contract talks. Miller took Delphi, the largest U.S. auto-parts supplier, into bankruptcy after he couldn't get financial aid from GM and was unable to persuade the UAW to cut pay for long-time workers by as much as 64 percent to as little as $10 an hour.

``If GM comes out of 2007 with a labor agreement that looks like what today's agreement is, they are inevitably headed toward Chapter 11,'' Miller said in an interview yesterday.

Source:  Bloomberg.com

"GM has $284 billion in debt outstanding, S&P said"

Warning to all:  Do not buy extended GM warranties.     

Oh wait - sorry, I quoted something artic posted in 2005...... seems they made it thru that time. This time who knows? here is the answer: only GM knows.
But until they ARE chapter 11, they AREN'T chapter 11.

Hasn't GM been doomed for a very longtime now?

Is it just me or does the Merill Lynch article only discuss GM NA? Apart from mentioning that China sales were slowing - only up 14 percent compared to 19 percent a year ago (and not down so how bad is that?) they fail to mention or acknowledge that GM sells a heck of alot of cars outside of NA:
http://www.infibeam.com/blog/news/2008/04/24/gm_announces_q1_global_sales_of_more_than_2_25mn_vehicles.html
DETROIT - General Motors sold 2.25 million cars and trucks around the world in the first quarter of 2008, according to preliminary sales figures released today, with a record 64 percent of all sales occurring outside the United States. GM global first quarter sales were down less than one percent. Robust first quarter sales in GM's Latin America, Africa and Middle East (GMLAAM) and Asia Pacific (GMAP) regions, and improved sales in the GM Europe (GME) region helped offset a 10 percent decline in GM North America (GMNA). Sales outside GMNA were up 8 percent compared with last year.

Thankfully the rest of the world isn't going the way the NA market is, and should help sustain GM. Will it be easy? no. It hasn't been easy for GM for a long time......

[Triple Bob]

What car do you drive drederick?

[DockMan]

What car do you drive drederick?

Bob is that you? http://en.wikipedia.org/wiki/Bob_White

[mwqa]

I wonder how all this is affecting GMs successful European and Asia units.

When the parent needs cash and the subsidiaries are making it, there is a lot of pressure to give it to the parent.

There is also an operation impact. I was in England recently and heard that the Great Northern England Railway lost its franchise on the east coast line (going from London up through Scotland) in part because of the problems of it's North America parent company.

[Triple Bob]

What car do you drive drederick?

Bob is that you? http://en.wikipedia.org/wiki/Bob_White

Nearly!    I'm coming over soon.....

[drederick]

What car do you drive drederick?

2000 Chev Cavalier Coupe
2005 Chev Equinox LT fwd

And, for the  record, I love cars. All cars. My favorite car for the LONGEST was the supercharged MR2.... but I prefer GMs.

[barrie1]

No matter who runs it the rail service still runs in Britain as they received around 1600 new locomotives only a few years back. The majority are the Royal Maroon and Gold while the remainder are the Dark Emerald Green and Gold. I see Artic is spouting figures again that he knows 0000 about regarding GM which is normal for him. At least someone said it right in that GM is making all kminds of money in every country but the US. They will never go bankrupt as the US is the head office. Even in China Buick is No. 1 with Volkswagon being next. 

[ArticSteve]

They will never go bankrupt as the US is the head office.

For bankruptcy purposes GM USA is an independent company from it's other international subsidiaries.  As an example GM Canada can declare bankruptcy independent of GM USA and vice versa.

You and my mother in law would really hit it off as you share equal knowledge of basic business practices. 

[initial_D]

Sounds like an invitation to the Thanksgiving Dinner is in order.

[ArticSteve]

Sounds like an invitation to the Thanksgiving Dinner is in order.

You nailed that one. 

Turkeys galore! 

[Zoo]

No matter who runs it the rail service still runs in Britain as they received around 1600 new locomotives only a few years back. The majority are the Royal Maroon and Gold while the remainder are the Dark Emerald Green and Gold. I see Artic is spouting figures again that he knows 0000 about regarding GM which is normal for him. At least someone said it right in that GM is making all kminds of money in every country but the US. They will never go bankrupt as the US is the head office. Even in China Buick is No. 1 with Volkswagon being next. 

Is GM making money in Canada?

[safristi]

..Artic is yer "offering" fresh Grandamnberries.......I'm IN.... ...gobble gobble...wot is that stuffin' in their seats.......

[toolatecrew]

No matter who runs it the rail service still runs in Britain as they received around 1600 new locomotives only a few years back. The majority are the Royal Maroon and Gold while the remainder are the Dark Emerald Green and Gold. I see Artic is spouting figures again that he knows 0000 about regarding GM which is normal for him. At least someone said it right in that GM is making all kminds of money in every country but the US. They will never go bankrupt as the US is the head office. Even in China Buick is No. 1 with Volkswagon being next. 

So if GM is making $ everywhere but US/Canada then why would they want to continue to support money losing operations in those countries. Why not just concentrate in the areas where you make $? At the very least you'd want to shift production capacity to the countries were you make $ and then import cars to other markets from there right?

But wouldn't that mean that GM would esentially become an import company? Guess you'll have to switch alligience to Ford or somthing since GM would just become another job stealing importer that you hate so much?

[gta_driver]

Is GM making money in Canada?
[/quote]

GMCL is profitable in Canada. They have the largest market share at around 30%. But here's the key, of the vehicles made in Canada by GM, none really sell well here, they traditionally sell well in the US market but because of a perfect storm of economic factors those vehicles are no longer selling well in the US; hence production cuts in Canada and decline in profitability of the GM parent company. GM's best selling cars (non fleet sales) in Canada are the Cobalt and G5 in the mid pack of the top 10 of all best selling vehicles in Canada(non fleet sales). The vehicles are built side-by-side in Lordstown, Ohio (where they actually need extra workers to keep up with strong demand). Just out of the top ten vehicles sold in Canada (non fleet) are the Aveo and Wave, which are built by GM Daewoo in South Korea and the base Aura, which is built in Germany by GM Europe/Opel.

[barrie1]

As usual some of the bigger mouthed folks on here don't have a clue about who is making money and who isen't. Artic you are so clueless on GM's bussiness affairs its pathetic. You consider yourself a knowledgable person but are not at all. The majority of the world profits all go to Detroit including the money which is still being made in Canada on a Reg basis. Why do you keep telling us all such lies and nonsence. Even your MIL has you figured out for what you really do know. Just because you have a used trailor lot or junklot does not mean you are the worlds most expert on Business at all. I have seen very foolish people in my day but you take 1st prize for sure. 

[ArticSteve]

Hate to ask    but what's a MIL ?

[tpl]

Mother in Law or Malfunction Indicator Light.    I cannot imagine which one Barrie means.