General Motors: Sales, Marketing, and Financial News
12-18-2005, 05:15 PM
#243
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Originally Posted by SpeedyV6
And soon, I'll become one of them. I'm not 20 anymore; I'm halfway there!
In this town, when the Lions lose, they win.
When the Bonneville gets discontinued, it's because it's died and gone to car heaven, not been discontinued due to lack of market demand.
Okay Bob, I got the Buick, the golf clubs, and all your 70s soundtracks reissued on CD. We're ready to hit the country club. "Old Farts In the Hills" CC!
Detroit didn't much like the 80s. Only Madonna did.
People, if they couldn't go back to the 90s, would rather set the dial to the 70s. At least my parents would ... they don't talk about their BMWs in their 80s, but their Impalas and Vegas in the 70s. Besides, that's when the best Fleetwood Mac work was done!
12-18-2005, 08:48 PM
#244
I agree these guys shouldnt be getting paid so much...
but there are so many angles you can argue with. If someone has a great record in bringing a company to success, would you as a CEO be willing to hire & pay someone 2 mil to make the company survive? If you dont pay them, someone else will. It's hard to find someone who is willing to leave from a succesful company.
One person I also respect is the owner of Costco. He only gets 300k a yr and puts the rest towards his company and employees. He pays his employees above average because he feels that if they are happy where they work, then they will give great service. Aint that the truth?? There was so much more to this guy and should be a role model for corporations.
but there are so many angles you can argue with. If someone has a great record in bringing a company to success, would you as a CEO be willing to hire & pay someone 2 mil to make the company survive? If you dont pay them, someone else will. It's hard to find someone who is willing to leave from a succesful company.
One person I also respect is the owner of Costco. He only gets 300k a yr and puts the rest towards his company and employees. He pays his employees above average because he feels that if they are happy where they work, then they will give great service. Aint that the truth?? There was so much more to this guy and should be a role model for corporations.
12-18-2005, 09:14 PM
#246
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Originally Posted by youngTL
I don't see what these guys do to deserve that much money. Anything more than $500 000 per year is ridiculous for any person. I'm firm that nobody should make more than that as a salary (investments not included).
How about 20 million to play basketball for a couple months?
12-18-2005, 10:58 PM
#248
Registered Abuser of VTEC
Originally Posted by SeCsTaC
How about 20 million to play basketball for a couple months?
12-19-2005, 01:15 AM
#249
Suzuka Master
Originally Posted by youngTL
Don't even get me started on pro athletes. But I guess if the viewers are willing to pay the ticket prices...
Those greedy SOBs don't deserve anywhere near the amount they are paid...
12-19-2005, 03:43 PM
#251
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Originally Posted by SpeedyV6
But the ticket prices are government subsidized through cheap low-yield municipal bonds that pay for the construction of stadiums.
vibrant neighborhoods, people that want to visit, clean streets = we don't need that in Detroit!
12-20-2005, 11:38 AM
#253
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From a market cap perspective one can draw various conclusions. Remember, the market cap value of a company shows what the market perceives of a company's value, not what the actualy value of that company is.
12-20-2005, 11:44 AM
#254
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Here is a more realistic way of assessing a public company's value:
Total Assets for Fiat = 96,016,000
Total Assets for GM = 479,603,000
(All numbers in thousands)
Total Assets for Fiat = 96,016,000
Total Assets for GM = 479,603,000
(All numbers in thousands)
12-20-2005, 11:51 AM
#255
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A few more numbers:
PERIOD ENDING 31-Dec-04 31-Dec-03 31-Dec-02
Total Cash Flow From Operating Activities for FIAT (488,455) (2,453,000) 1,104,000
Total Cash Flow From Operating Activities for GM 13,061,000 7,875,000 17,109,000
(All numbers in thousands)
PERIOD ENDING 31-Dec-04 31-Dec-03 31-Dec-02
Total Cash Flow From Operating Activities for FIAT (488,455) (2,453,000) 1,104,000
Total Cash Flow From Operating Activities for GM 13,061,000 7,875,000 17,109,000
(All numbers in thousands)
01-03-2006, 12:03 PM
#256
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GM shares fall after brokerage cuts target price
GM shares fall after brokerage cuts target price - - Reuters - - Source: Automotive News
DETROIT -- Shares of General Motors fell nearly 5 percent on Tuesday after Banc of America Securities cut its target price for the automaker's stock.
The brokerage firm lowered the target price to $13 from $16, citing lower savings from GM's recent health-care agreement with the United Auto Workers union.
That would represent a fall of an additional 33 percent this year for GM's stock, which was one of the worst performers in the Standard & Poor's 500 index in 2005, dropping almost 52 percent.
The shares were down 74 cents, or 3.8 percent, at $18.68 in morning trade on the New York Stock Exchange after falling as low as $18.47 earlier in the session. GM's decline weighed on the blue-chip Down Jones industrial average.
GM has said the health-care pact, endorsed by the union in October, will cut its health-care expenses by $3 billion annually before taxes, and reduce its hourly health-care liability by 25 percent, or by about $15 billion.
"GM's estimate of a $15 billion reduction in the health-care liability, due to the agreement, assumes the agreement lasts in perpetuity," Banc of America analyst Ron Tadross said in a note to clients.
"Apparently, the agreement ends in 2011," he said.
The eventual savings from the deal will be only about $7 billion before taxes, he said.
Calls to GM spokesmen were not immediately returned.
GM shares have been under pressure as the company struggles with high health-care and commodities costs, loss of U.S. market share to foreign rivals, and sinking sales of SUVs, its long-time profit generators. The world's largest automaker lost nearly $4 billion through the first nine months of 2005.
Moreover, the shares have been falling steadily since news of the sale of 12 million GM shares by billionaire Kirk Kerkorian's investment arm, Tracinda Corp., last month. Tracinda reduced its stake in the company to 7.8 percent from 9.9 percent, citing income tax savings.
Banc of America also cut its target price for Ford Motor Co. shares to $7 from $8, but raised its target price for Toyota Motor Corp. to $113 from $110.
Ford shares were off 4 cents at $7.68.
The brokerage firm lowered the target price to $13 from $16, citing lower savings from GM's recent health-care agreement with the United Auto Workers union.
That would represent a fall of an additional 33 percent this year for GM's stock, which was one of the worst performers in the Standard & Poor's 500 index in 2005, dropping almost 52 percent.
The shares were down 74 cents, or 3.8 percent, at $18.68 in morning trade on the New York Stock Exchange after falling as low as $18.47 earlier in the session. GM's decline weighed on the blue-chip Down Jones industrial average.
GM has said the health-care pact, endorsed by the union in October, will cut its health-care expenses by $3 billion annually before taxes, and reduce its hourly health-care liability by 25 percent, or by about $15 billion.
"GM's estimate of a $15 billion reduction in the health-care liability, due to the agreement, assumes the agreement lasts in perpetuity," Banc of America analyst Ron Tadross said in a note to clients.
"Apparently, the agreement ends in 2011," he said.
The eventual savings from the deal will be only about $7 billion before taxes, he said.
Calls to GM spokesmen were not immediately returned.
GM shares have been under pressure as the company struggles with high health-care and commodities costs, loss of U.S. market share to foreign rivals, and sinking sales of SUVs, its long-time profit generators. The world's largest automaker lost nearly $4 billion through the first nine months of 2005.
Moreover, the shares have been falling steadily since news of the sale of 12 million GM shares by billionaire Kirk Kerkorian's investment arm, Tracinda Corp., last month. Tracinda reduced its stake in the company to 7.8 percent from 9.9 percent, citing income tax savings.
Banc of America also cut its target price for Ford Motor Co. shares to $7 from $8, but raised its target price for Toyota Motor Corp. to $113 from $110.
Ford shares were off 4 cents at $7.68.
01-05-2006, 09:17 AM
#258
Safety Car
More Lay Offs
http://money.cnn.com/2006/01/05/news...s_gm/index.htm
More GM cuts, this time tech jobs
Newspaper reports carmaker will lay off 500, mostly engineers and designers, in Warren, Mich.
January 5, 2006: 8:34 AM EST
NEW YORK (CNNMoney.com) - GM plans to lay off 500 contract workers at its Warren, Mich. technical center on Friday, according to a report published Thursday.
The job cuts will effect mostly engineers and designers and are part of the automaker's efforts to slash costs at its North American operations, the Detroit News said.
"This is a very challenging time, and these are very difficult decisions for the company," GM spokesman Robert Herta told the newspaper. "It's all about aligning the work force with our business needs."
The company said the cuts are part of a previously announced plan to reduce its U.S. white collar work force by seven percent in 2006, the report said.
GM (Research) has been plagued by declining sales and market share and a downgrade in its bonds to junk status.
More GM cuts, this time tech jobs
Newspaper reports carmaker will lay off 500, mostly engineers and designers, in Warren, Mich.
January 5, 2006: 8:34 AM EST
NEW YORK (CNNMoney.com) - GM plans to lay off 500 contract workers at its Warren, Mich. technical center on Friday, according to a report published Thursday.
The job cuts will effect mostly engineers and designers and are part of the automaker's efforts to slash costs at its North American operations, the Detroit News said.
"This is a very challenging time, and these are very difficult decisions for the company," GM spokesman Robert Herta told the newspaper. "It's all about aligning the work force with our business needs."
The company said the cuts are part of a previously announced plan to reduce its U.S. white collar work force by seven percent in 2006, the report said.
GM (Research) has been plagued by declining sales and market share and a downgrade in its bonds to junk status.
01-26-2006, 08:19 AM
#259
Safety Car
$4.8 Billion
http://news.yahoo.com/s/ap/earns_gm;...kxBHNlYwN0bQ--
GM Loses $4.8 Billion in Fourth Quarter
By DEE-ANN DURBIN, AP Auto Writer 11 minutes ago
DETROIT - General Motors Corp., which is planning big job cuts and plant closings as it fights to avoid bankruptcy, said Thursday it lost $4.8 billion in the fourth quarter and $8.6 billion in all of 2005, dragged down by losses in its North American division.
The loss amounts to $8.45 per share for the quarter and $15.13 per share for the year.
GM's fourth-quarter loss compares to a loss of $99 million, or 18 cents per share, in the October-December period of 2004. It was the automaker's fifth straight quarterly loss.
Revenue was $51.2 billion for the quarter, down slightly from $51.4 billion a year ago. Full-year revenue was $192.6 billion, down slightly from $193.5 billion in 2004.
Shares of the world's largest automaker fell $1.03, or more than 4 percent, to $22.82 in pre-market trading after the news.
Excluding special items, GM said it lost $1.2 billion, or $2.09 per share, in the latest quarter, compared to adjusted earnings of $726 million, or $1.28 per share, in the fourth quarter of 2004.
Special items included one-time restructuring costs of $1.3 billion in North America and a $2.3 billion charge associated with benefits at Delphi Corp., GM's former parts division, which filed for bankruptcy last fall. GM said it expects to spend between $3.6 billion and $12 billion on benefits that were promised to Delphi workers.
Excluding items for the entire year, the company reported a loss of $3.4 billion, or $5.99 per share, compared with an adjusted 2004 profit of $3.6 billion, or $6.37 per share.
Wall Street analysts were expecting a loss of 16 cents per share on revenue of $41.7 billion in the fourth quarter, according to a survey by Thomson Financial. Analysts forecast a loss of $4.19 per share on revenues of $158 billion for the year.
GM Chairman and CEO Rick Wagoner said 2005 "was one of the most difficult years in GM's history."
"It was a year in which two significant fundamental weaknesses in our North American operations were fully exposed — our huge legacy cost burden and our inability to adjust structural costs in line with falling revenue," Wagoner said.
Wagoner said the company is moving forward with its turnaround plans, including a restructuring that will cut 30,000 jobs and shutter 12 facilities by 2008 and a plan to cut structural costs by $4 billion this year, largely through a health-care agreement with the
United Auto Workers and manufacturing improvements.
GM sold 9.2 million vehicles worldwide in 2005, the second-largest volume in the company's history. The automaker also set sales records in Asia, Latin America, Africa and the Middle East, and sales also were up a modest 1.3 percent in Europe. But North American losses overwhelmed those gains, and GM's worldwide market share was down slightly, to 14.2 percent from 14.4 percent in 2004.
GM got a boost Wednesday when billionaire investor Kirk Kerkorian said in a federal filing that he reacquired 12 million shares of GM stock he sold in December. Kerkorian spent more than $250 million to boost his stake, which now stands at nearly 10 percent.
GM's results come three days after Ford Motor Co. announced a profit of $2 billion for 2005. But Ford also struggled in its home market, losing $1.6 billion in North America for the year.
GM Loses $4.8 Billion in Fourth Quarter
By DEE-ANN DURBIN, AP Auto Writer 11 minutes ago
DETROIT - General Motors Corp., which is planning big job cuts and plant closings as it fights to avoid bankruptcy, said Thursday it lost $4.8 billion in the fourth quarter and $8.6 billion in all of 2005, dragged down by losses in its North American division.
The loss amounts to $8.45 per share for the quarter and $15.13 per share for the year.
GM's fourth-quarter loss compares to a loss of $99 million, or 18 cents per share, in the October-December period of 2004. It was the automaker's fifth straight quarterly loss.
Revenue was $51.2 billion for the quarter, down slightly from $51.4 billion a year ago. Full-year revenue was $192.6 billion, down slightly from $193.5 billion in 2004.
Shares of the world's largest automaker fell $1.03, or more than 4 percent, to $22.82 in pre-market trading after the news.
Excluding special items, GM said it lost $1.2 billion, or $2.09 per share, in the latest quarter, compared to adjusted earnings of $726 million, or $1.28 per share, in the fourth quarter of 2004.
Special items included one-time restructuring costs of $1.3 billion in North America and a $2.3 billion charge associated with benefits at Delphi Corp., GM's former parts division, which filed for bankruptcy last fall. GM said it expects to spend between $3.6 billion and $12 billion on benefits that were promised to Delphi workers.
Excluding items for the entire year, the company reported a loss of $3.4 billion, or $5.99 per share, compared with an adjusted 2004 profit of $3.6 billion, or $6.37 per share.
Wall Street analysts were expecting a loss of 16 cents per share on revenue of $41.7 billion in the fourth quarter, according to a survey by Thomson Financial. Analysts forecast a loss of $4.19 per share on revenues of $158 billion for the year.
GM Chairman and CEO Rick Wagoner said 2005 "was one of the most difficult years in GM's history."
"It was a year in which two significant fundamental weaknesses in our North American operations were fully exposed — our huge legacy cost burden and our inability to adjust structural costs in line with falling revenue," Wagoner said.
Wagoner said the company is moving forward with its turnaround plans, including a restructuring that will cut 30,000 jobs and shutter 12 facilities by 2008 and a plan to cut structural costs by $4 billion this year, largely through a health-care agreement with the
United Auto Workers and manufacturing improvements.
GM sold 9.2 million vehicles worldwide in 2005, the second-largest volume in the company's history. The automaker also set sales records in Asia, Latin America, Africa and the Middle East, and sales also were up a modest 1.3 percent in Europe. But North American losses overwhelmed those gains, and GM's worldwide market share was down slightly, to 14.2 percent from 14.4 percent in 2004.
GM got a boost Wednesday when billionaire investor Kirk Kerkorian said in a federal filing that he reacquired 12 million shares of GM stock he sold in December. Kerkorian spent more than $250 million to boost his stake, which now stands at nearly 10 percent.
GM's results come three days after Ford Motor Co. announced a profit of $2 billion for 2005. But Ford also struggled in its home market, losing $1.6 billion in North America for the year.
they don't have 5 years.
01-26-2006, 08:55 AM
#265
Burning Brakes
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I'm afraid GM just doesn't "get it." For YEARS, magazine reviews have been harping on the cheap appearance of GM interiors, yet they persist with the S.O.S. in every model. Even the CTS' dash looks like something out of a G.I. Joe comic book with all the plastic. In THAT area, if no other, they could certainly learn a lesson from Acura. The interior design/aesthetics/ergonomics of the current TL were large factors in my buying this car instead of the G35 I had been planning on.
The whole "Aztek" fiasco is a perfect example of how GM is out of touch with reality....whoever let that rolling joke off the drawing board should be shot, drawn and quartered, their head stuck on a pike....and THEN they should be fired!
They also seem to think that simply slapping a famous nameplate from the past (Impala, Malibu, GTO, etc.) on their current "boredom-mobiles" will cause people to flock in and buy.
The whole "Aztek" fiasco is a perfect example of how GM is out of touch with reality....whoever let that rolling joke off the drawing board should be shot, drawn and quartered, their head stuck on a pike....and THEN they should be fired!
They also seem to think that simply slapping a famous nameplate from the past (Impala, Malibu, GTO, etc.) on their current "boredom-mobiles" will cause people to flock in and buy.
01-26-2006, 08:58 AM
#266
Originally Posted by Dkrudop
They also seem to think that simply slapping a famous nameplate from the past (Impala, Malibu, GTO, etc.) on their current "boredom-mobiles" will cause people to flock in and buy.
01-26-2006, 09:39 AM
#268
Not Asian
Maybe you guys don't get it. The sales were right on par with last year and the 2nd most in GM history. So, apparently, they are doing something right. The problem? Costs and they are developing plans to cut them already. Legacy costs are extremely high. The new UAW plan won't be reflected on the balance sheet for another couple years. The Delphi bankruptcy also didn't help.
So, blaming the reason for GM's failure is not the design and sales.
So, blaming the reason for GM's failure is not the design and sales.
01-26-2006, 09:42 AM
#269
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Perception is reality. Overall, I wouldnt rate one brand more reliable than another. The general public, however, perceive imports to be of higher quality.
I honestly believe this is due to the way stealerships behave.
I love my Chrysler and the only thing that has gone wrong with it that wasnt my fault was the coil pack. The service manager is a sweetheart and we get along beautifully but the idiots out front are sarcastic, rude, and generally unpleasent to deal with.
Their over-paid over-confident people are whats killing the brand. Not the cars.
I honestly believe this is due to the way stealerships behave.
I love my Chrysler and the only thing that has gone wrong with it that wasnt my fault was the coil pack. The service manager is a sweetheart and we get along beautifully but the idiots out front are sarcastic, rude, and generally unpleasent to deal with.
Their over-paid over-confident people are whats killing the brand. Not the cars.
Last edited by SakiGT; 01-26-2006 at 09:44 AM.
01-26-2006, 09:46 AM
#271
Originally Posted by phipark
Maybe you guys don't get it. The sales were right on par with last year and the 2nd most in GM history. So, apparently, they are doing something right. The problem? Costs and they are developing plans to cut them already. Legacy costs are extremely high. The new UAW plan won't be reflected on the balance sheet for another couple years. The Delphi bankruptcy also didn't help.
So, blaming the reason for GM's failure is not the design and sales.
So, blaming the reason for GM's failure is not the design and sales.
but seems like you're the one that isn't getting it. They've lost an astonishing amount of market share and it's continuing to drop rapidly while asian brands are rapidly gaining market share. Shareholders see this and dump the stock. Costs are just one of the problems that faces GM.
01-26-2006, 09:52 AM
#274
Senior Moderator
GM will be out of cash reserves in about 3 years or less?
01-26-2006, 10:17 AM
#277
Originally Posted by F-C
GM will be out of cash reserves in about 3 years or less?
Originally Posted by phipark
at this rate
Originally Posted by phipark
Give them about 5 years after all the layoffs and plant closings settle in.
01-26-2006, 10:25 AM
#278
Not Asian
Originally Posted by zeroday
thats a copout. explain why you disagree.
Let's just hope they can hang on for another 5 years and I think they'll start to bloom again. Just like they did in 1999 after their problems in 1994.
01-26-2006, 10:26 AM
#279
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Originally Posted by SakiGT
Perception is reality. Overall, I wouldnt rate one brand more reliable than another. The general public, however, perceive imports to be of higher quality.
.
.
Originally Posted by SakiGT
The service manager is a sweetheart and we get along beautifully but the idiots out front are sarcastic, rude, and generally unpleasent to deal with..
