More Bad News re: GM

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Jason - 04 May 2006 05:54 GMT

I copied the following information from page 29 of the June 2006 issue
of "Motor Trend" magazine:

"Add another $2 billion to General Motors's 2005 losses. The accounting
adjustment comes from higher than expected costs for trying to bail out
parts supplier Delphi Corporation and added costs for last November's job
cuts. THIS BRINGS THE TOTAL LOSS TO $10.6 BILLION FOR LAST YEAR."

I thank God that I don't own any shares of stock in GM.

On page 26 of the May 2006 issue of "Motor Trend"--the editors stated that
GM will be out of money in three years unless they sell more cars.

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Lee Florack - 07 May 2006 22:59 GMT

> I copied the following information from page 29 of the June 2006 issue
> of "Motor Trend" magazine:
[quoted text clipped - 8 lines]
> On page 26 of the May 2006 issue of "Motor Trend"--the editors stated that
> GM will be out of money in three years unless they sell more cars.

...and the problem is that they've been making many more vehicles
than they can reasonably sell for quite a few years. BTW, by
reasonably I mean that they can make sufficient profit to handle all
the costs of making the vehicles -- including wages, health and
retiree costs. Losing over 10 Billion last year gives me the "idea"
that they aren't even coming close to covering those costs.

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