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GM PROFITS PLUNGE 41%... America's largest automaker made $1.5bn in the second quarter of 2012, compared with $2.5bn for the same period last year. Revenue fell to $37.6bn from $39.4bn in the second quarter of 2011. The results exceeded analysts' estimates, but further underlined Europe's drag on the US economy.
Feds keep buying more cars... Budgets may be tight, but the federal government has increased its fleet of cars to 449,000 vehicles — or nearly one for every seven federal employees — according to the Government Accountability Office.
Looks like Government Motors is not doing so well, even with Obama buying up massive amounts of cars for use by the federal government.
On the bright side, democrats who demonize corporations making profits overseas by shipping jobs overseas, should be thrilled that GM is losing money in Europe.
So what should GM do?
1) Beef up production of the Volt?
2) Hope Romney gets elected and the economy and jobs turns around?
3) Dump all SUV production and start build high mileage, EPA mandated, cars now?
4) Ask for another bailout by the federal government?
So, they made 1.5 Billion profit, and yet you say they are not doing too well? I think they need to keep doing what they are doing.
It's downright unbelievable that they're still doing EXTREMELY stupid things; Automobile News reports today that they recently purchased 7% of Citroen/Peugeot, which is absolutely asinine given the tanking economies throughout Europe.
Why did we bail out these morons if they keep pulling super-stupid stuff like this?????
Honestly, I would think that more Americans would be hoping for GM to succeed rather than looking for any reason to badmouth the company.
From my understanding, most car makers aren't doing all that well but they are still better than they were a few years ago. I also dont' understand the constant focus of you people on the Volt....
They don't even make many of these cars and when it debuted it did just as well as the Prius did when it first debuted, which was and is promising.
Here is an American who is pulling for GM and hopes that as the world economy gets better GM will get stronger.
It's downright unbelievable that they're still doing EXTREMELY stupid things; Automobile News reports today that they recently purchased 7% of Citroen/Peugeot, which is absolutely asinine given the tanking economies throughout Europe.
Why did we bail out these morons if they keep pulling super-stupid stuff like this?????
It is not as stupid as you think. They sell a lot of cars in emerging markets, and in Europe despite of the recession.
Last edited by Finn_Jarber; 08-13-2012 at 09:14 AM..
Well, that's what all car companies try to do. They all try to see a lot of cars.
Still doesn't change the fact that selling cars is not necessarily indicative of profitability. If you question that, feel free to look up a simple (revenue - cost) formula.
So, they made 1.5 Billion profit, and yet you say they are not doing too well? I think they need to keep doing what they are doing.
How much of that 'profit' is taxpayer dollars?
We pay $7,500 rebates for every Chevy Volt purchased, and we are paying for GM's Employee Early Retirement Program, and we are letting them go ten years without paying any taxes, and we own a butt load of GM stock, that we bought at about $58 a share, that is now worth about $20 a share. Which end of the stick do you think we taxpayers are left holding?
The stock has to get to $52/share in order for the USG to break even on their "investment".
Take all the fleet purchases by the USG out of the picture and it looks even worse.
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