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Car Forum / GMC Cars / July 2005GM Going Down Fast - Only One Hope Left
>GM posts loss, auto giants loses over $1 bln >Wed Jul 20, 2005 9:43 AM ET > >DETROIT (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) >posted an unexpected quarterly loss on Wednesday as stubbornly high costs >for everything from materials to worker health care outweighed >surprisingly strong car sales and good results from its finance arm. > >The news capped a nightmarish second quarter for GM, which is struggling >to regain market share from Asian rivals and saw its debt cut to "junk" >status by the Standard & Poor's rating agency in May. > >GM shares fell nearly 5 percent in pre-market trade. > >The world's largest automaker, which triggered alarm bells on Wall Street >when it reported a $1.1 billion loss in the first quarter, said its >second-quarter net loss was $286 million, or 51 cents per share. In the good old days of the Curved Dash, General Motors could have muscled Congress into a naval blockade along our coasts to keep the cut-throat competition out. That is no longer possible. The only thing left is for GM to start thinking outside the Toyota box. Toyota manufactures very nice, very conventional autos, using mostly copied U.S. technology which the orient is famous for. GM must provide cars that are truly futuristic and beyond the capabilities of the yellow race. Simply cutting the prices to money-losing profit margins is no way boost dividends and stock prices. GM blames material cost rises. So, use less materials! The lightest subcompacts now weigh more than your average cast iron '48 Ford. Get the lead out! Build nice four passenger cars in the 1200 to 1500 pound class, thus halving materials!! See? Its that simple. A beneficial byproduct of these new light cars will be phenomenal gas mileage without even the need for expensive hybrid technology--80 miles per gallon will be feasible with a 1200 pound streamlined car using a turbocharged diesel engine--and with the same performance we are used to. Stong patents, backed with Congressional muscle, will keep the foreigners from copying this new breed of efficient motor car. GM blames health care costs. Do as Wal-Mart does and put workers on part-time and provide no health care coverage at all--just let MediCaid take care of 'em. Tell them to take it or leave it. Sure, they'll strike, but then GM just hires replacement workers. Those scabs don't need to be skilled. Any high school graduate from shop class can be trained in three days to run a robot assembler. Hire a whole new crew, if that's what it takes. GM had better see the writing on the wall and toughen up or get out of the hot kitchen before the curtain falls. I don't own a GM vehicle but the opinion you present reminds one of the guy drinking in a bar telling others how he knows the answers to all the complex problems of the world. Facts: Several recent initial quality and long term reliability survey by J D Powers, and several others, as well as published federal CAFE ratings show that GM builds some of the best, safest, most trouble free, most economical vehicles offered for sale by any manufacture in the US today. The fast majority of buyers know that to be true, that is why GM IS the largest vehicle manufacture in the world, and in the US. Ford in number two, Chrysler is number three while much daunted Toyota is a distant fourth in the US, by far the largest auto market in the world. GM and Ford together sell as many vehicles in the US as do ALL of the the other half dozen or so manufacturers, that offer vehicles for sale in the US do, combined. Toyota has been advertising itself as the 'number one car brand in the US,' but GM in fact sells far more cars than Toyota, albeit under several brands. Chevrolet was the number on selling car brand in June, not Toyota, in any event GM paid a quarterly dividend to shareholders in the first and second quarters. Me thinks the eminent demise of GM is a bit premature, to say the least ;) mike hunt Nomen NERCO wrote: > >The world's largest automaker, which triggered alarm bells on Wall Street > >when it reported a $1.1 billion loss in the first quarter, said its [quoted text clipped - 33 lines] > GM had better see the writing on the wall and toughen up or get out of the > hot kitchen before the curtain falls. >Facts: Several recent initial quality and long term reliability >survey by J D Powers, and several others, as well as published [quoted text clipped - 7 lines] >Toyota is a distant fourth in the US, by far the largest auto >market in the world. What you say may very well be true but many people just don't have any faith in American cars anymore. They go through a couple of domestic models while the neighbor across the street is still driving the same Toyota or Honda they bought ten years ago. This I know from personal experience in my circle of friends and acquaintances. Most car buyers don't know or care about J D Power and think it's some guy who plays shortstop for the Braves. All they know is what happens to them and what they see. They've been burned a couple of times and aren't going to let it happen again. They will vote with their dollars based on personal experience. That being said, I drive an older Eldo. It's a money pit but the seats are leather and the ride is great. I bought a new Chevy work van last year and I'm most pleased with it so far. Time will tell. My wife has a '93 Camry, bought new. Non-maintenance repairs to date have been two radio buttons and a wiper arm that stripped, for a total of about $50. That's a tough act for Detroit to follow. All this isn't about today's reality, it's about car buyer's perception of that reality. Detroit isn't trusted and until they are, the slide will continue. FWIW YMMV DFB That may be your experience but there are people will tell you the opposite about their Toyota. Personally one of the most problematic vehicles I even owned was a Honda. I do not therefor assume all Hondas are bad vehicles. The proof is in the pudding, as the say, and more buyers still chose GM and Ford than Chrysler, Toyota, Honda etall combined in the US mike hunt > >Facts: Several recent initial quality and long term reliability > >survey by J D Powers, and several others, as well as published [quoted text clipped - 35 lines] > YMMV > DFB Thank you for the polite, measured and informed response. I guess we will continue to agree to disagree. DFB >That may be your experience but there are people will tell you >the opposite about their Toyota. Personally one of the most [quoted text clipped - 44 lines] >> YMMV >> DFB That is after all what gentlemen should do, is it not? ;) mike hunt > Thank you for the polite, measured and informed response. I guess we > will continue to agree to disagree. [quoted text clipped - 49 lines] > >> YMMV > >> DFB > >GM posts loss, auto giants loses over $1 bln > >Wed Jul 20, 2005 9:43 AM ET [quoted text clipped - 47 lines] > GM had better see the writing on the wall and toughen up or get out of the > hot kitchen before the curtain falls. KNOW NOTHING BLOW HARD! If you rally want a car as you described, buy it. Hope you enjoy that piece of trash. One thing for sure, if the UAW did strike GM will not bring in a bunch of scabs. You must think a monkey could do these tasks, WRONG! Most of the jobs at any of the automakers require 6 months to a year to learn really well and skilled trades is still four years. Take your opinion and troll elsewhere. > >GM posts loss, auto giants loses over $1 bln > >Wed Jul 20, 2005 9:43 AM ET [quoted text clipped - 47 lines] > GM had better see the writing on the wall and toughen up or get out of the > hot kitchen before the curtain falls. And Ford reports a Billion dollar loss in the 2nd quarter. Soon you can buy your car from China as well as Japan (and go there to get a job). >In the good old days of the Curved Dash, General Motors could have muscled >Congress into a naval blockade along our coasts to keep the cut-throat >competition out. That is no longer possible. You and Dick Gephardt out to have a confab. He's a devout isolationist, as well. Ever hear of the concept of a free market economy? >The only thing left is for GM to start thinking outside the Toyota box. >Toyota manufactures very nice, very conventional autos, using mostly copied >U.S. technology which the orient is famous for. GM must provide cars that >are truly futuristic and beyond the capabilities of the yellow race. Ever hear of the fre exchange between competitors for the betterment of the consumer? The yellow race? Are you for fuckin' real? >Simply cutting the prices to money-losing profit margins is no way boost >dividends and stock prices. You have to be a myopic stockholder or shareholder. GM is blue chip. They will not be filing Chapter 13 anytime soon. >GM blames material cost rises. So, use less materials! The lightest >subcompacts now weigh more than your average cast iron '48 Ford. Get the [quoted text clipped - 6 lines] >Congressional muscle, will keep the foreigners from copying this new breed >of efficient motor car. Is there currently a consumer demand for vehicles with less materials? The reality of it is that some friendly competition between GM and the Far East manufacturers benefits the consumer/end users. Good idea. Have the Feds intervene and interfere via more regulations with the private sector. And we are all well aware of how well the Feds conduct business. >GM blames health care costs. Do as Wal-Mart does and put workers on >part-time and provide no health care coverage at all--just let MediCaid >take care of 'em. And who ultimately pays for medical assistance for those who cannot afford medical coverage on their own? Tell them to take it or leave it. Sure, they'll strike, >but then GM just hires replacement workers. Those scabs don't need to be >skilled. Any high school graduate from shop class can be trained in three >days to run a robot assembler. Hire a whole new crew, if that's what it >takes. Another prolific idea. Having the UAW pissed off at you. Strikes only put a small dent into the unons coffers, right. And you are so correct, too. Training costs next to nada when it involves new hires. >GM had better see the writing on the wall and toughen up or get out of the >hot kitchen before the curtain falls. OK, Henny Penny. Better get your umbrella out. |
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