General Motors: Sales, Marketing, and Financial News
at this point
Team Owner
Joined: Feb 2002
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From: Miami, FL
On a side note, I work for a company that's owned by GMAC and GM is selling GMAC. GMAC is happy because when they borrow to fund their mortgages they get his with a crappy rate since GM's in junk status. When 51% of it is sold to a AAA company (rumors are Bank of America) then it'll be cheaper to borrow. I don't see why GM's selling majority stake of it's profitable company. I guess they're cleaning out the portfolio. 
Thread Starter
Moderator Alumnus
Joined: Oct 2000
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From: Washington DC (NOVA)
General Motors and Bankruptcy **Unconfirmed Rumors on Bankrupty (page 1)**
GM not headed toward bankruptcy, CEO Wagoner says - - Reuters / November 17, 2005 - - Source: Automotive News
DETROIT -- Losses at General Motors are unsustainable, but the company is not headed toward insolvency, CEO Richard Wagoner said on Thursday.
"There is absolutely no plan, strategy or intention for GM to file for bankruptcy," Wagoner said in a letter to GM's 325,000 employees on the company's internal Web site.
GM, the world's largest automaker, has lost nearly $4 billion this year, while its shares have lost about 46 percent of their value.
The auto giant is struggling with high health care and commodities costs, stalled sales of its big SUVs and loss of U.S. market share to foreign rivals.
"The large losses at GMNA (GM North America) are unsustainable, for sure, and require a comprehensive strategy to address them ... a strategy that must be implemented promptly and effectively, to get our U.S. business profitable again," Wagoner said in the note.
GM shares, which fell to an 18-year low earlier in the day, rose $1.34, or 6.3 percent, to close at $22.63 on the New York Stock Exchange.
The letter comes amid wide speculation of a growing possibility of bankruptcy at GM and fears of a strike at bankrupt Delphi Corp., -- GM's main auto parts supplier.
A strike at Delphi, which plans to ask the court to void labor contracts with its unions if a deal is not reached by Dec. 16, could shut down some GM and Delphi plants and force GM to burn through billions of dollars, analysts have said.
Wagoner did not mention the impact of Delphi's bankruptcy in his letter. GM, which spun off Delphi in 1999 and agreed to pay retirement expenses for some former GM workers if the supplier stopped payments, could face up to $12 billion in liabilities for the supplier.
"There is absolutely no plan, strategy or intention for GM to file for bankruptcy," Wagoner said in a letter to GM's 325,000 employees on the company's internal Web site.
GM, the world's largest automaker, has lost nearly $4 billion this year, while its shares have lost about 46 percent of their value.
The auto giant is struggling with high health care and commodities costs, stalled sales of its big SUVs and loss of U.S. market share to foreign rivals.
"The large losses at GMNA (GM North America) are unsustainable, for sure, and require a comprehensive strategy to address them ... a strategy that must be implemented promptly and effectively, to get our U.S. business profitable again," Wagoner said in the note.
GM shares, which fell to an 18-year low earlier in the day, rose $1.34, or 6.3 percent, to close at $22.63 on the New York Stock Exchange.
The letter comes amid wide speculation of a growing possibility of bankruptcy at GM and fears of a strike at bankrupt Delphi Corp., -- GM's main auto parts supplier.
A strike at Delphi, which plans to ask the court to void labor contracts with its unions if a deal is not reached by Dec. 16, could shut down some GM and Delphi plants and force GM to burn through billions of dollars, analysts have said.
Wagoner did not mention the impact of Delphi's bankruptcy in his letter. GM, which spun off Delphi in 1999 and agreed to pay retirement expenses for some former GM workers if the supplier stopped payments, could face up to $12 billion in liabilities for the supplier.
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Moderator Alumnus
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From: Washington DC (NOVA)
Let me say this. If Delphi goes through a long strike, it will be probable for GM to go into an unrecoverable situation. Everything else is just talk by executives.
Safety Car
Joined: Sep 2002
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From: philly
Originally Posted by Moog-Type-S
GM will go Bankrupt. It's a matter of time.
Intermediate
Joined: Jun 2002
Posts: 27
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From: Memphis, TN, USA
Originally Posted by heyitsme
They don't have to if they drop dead weight like Delphi-even with penalty, Cadillac was turned around in less years than I can even remember...
Delphi has 34,000 employees. 24,000 of them are UAW. Delphi wants to reduce its staff... by 24,000 while cutting wages from $24/hr to $9/hr. Hmm, I wonder if they're going to strike or not.
GM is in deep
Banned
Joined: Feb 2005
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From: Champaign, Illinois
If the rest of GM was run like Cadillac, GM wouldn't have this problem.
A Delphi strike, which seems to be desired by the rank-and-file UAW, would be the iceberg that could sink USS General Motors.
A Delphi strike, which seems to be desired by the rank-and-file UAW, would be the iceberg that could sink USS General Motors.
Banned
Joined: Feb 2005
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From: Champaign, Illinois
The only way to change the cost structure is to null-and-void UAW and supplier contracts. How to do that: only bankruptcy can clean that mess out. And then, you need new management to replace the failed current management, and also replace the board of directors as well.
You need to rip out the heart of General Motors to save it.
http://www.generalwatch.com
You need to rip out the heart of General Motors to save it.
http://www.generalwatch.com
Senior Moderator
Joined: Aug 2002
Posts: 35,218
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From: Swansea, MA
^^ yep, Chrysler was at the brink of bankruptcy before they goverment bailed them out in the 80's... Lee Iacocca and Minivan sales turned 'em around tho'...
GM need a good housecleaning...
GM need a good housecleaning...
Safety Car
Joined: Mar 2004
Posts: 4,411
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From: New Orleans
Originally Posted by gavriil
Let me say this. If Delphi goes through a long strike, it will be probable for GM to go into an unrecoverable situation.
Safety Car
Joined: Dec 2004
Posts: 4,841
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From: NC
Closings
http://www.usatoday.com/money/autos/...closures_x.htm
General Motors to close some North American plants
DETROIT (AP) — General Motors Corp., which has been losing billions of dollars along with share in the key U.S. market, is planning to close some North American plants, a spokesman for the world's biggest automaker said Monday.
Rick Wagoner, chairman and CEO of the world's largest automaker, was expected to announce the closures during a speech to employees from GM's Detroit headquarters before the financial markets open, GM spokesman Brian Akre said.
GM has been crippled by falling U.S. market share, high labor and health care costs and other issues. It lost nearly $4 billion in the first nine months of this year.
The automaker could also be facing a strike at Delphi Corp., its biggest parts supplier, which filed for bankruptcy protection last month. GM spun off Delphi in 1999 and could be liable for billions in pension costs for Delphi retirees. GM also is under investigation by the U.S. Securities and Exchange Commission for accounting errors.
General Motors to close some North American plants
DETROIT (AP) — General Motors Corp., which has been losing billions of dollars along with share in the key U.S. market, is planning to close some North American plants, a spokesman for the world's biggest automaker said Monday.
Rick Wagoner, chairman and CEO of the world's largest automaker, was expected to announce the closures during a speech to employees from GM's Detroit headquarters before the financial markets open, GM spokesman Brian Akre said.
GM has been crippled by falling U.S. market share, high labor and health care costs and other issues. It lost nearly $4 billion in the first nine months of this year.
The automaker could also be facing a strike at Delphi Corp., its biggest parts supplier, which filed for bankruptcy protection last month. GM spun off Delphi in 1999 and could be liable for billions in pension costs for Delphi retirees. GM also is under investigation by the U.S. Securities and Exchange Commission for accounting errors.
Banned
Joined: Feb 2005
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From: Champaign, Illinois
Nine plants:
http://news.yahoo.com/s/ap/20051121/ap_on_bi_ge/gm
Including Spring Hill, home to Saturn hippieness in Tennessee.
Al Gore: 'I want to be the candidate of Confederates who drive around in Nissan pickup trucks, cuz there ain't no GM in this state anymore'
MERRY CHRISTMAS FROM GENERAL MOTORS
http://news.yahoo.com/s/ap/20051121/ap_on_bi_ge/gm
Including Spring Hill, home to Saturn hippieness in Tennessee.
Al Gore: 'I want to be the candidate of Confederates who drive around in Nissan pickup trucks, cuz there ain't no GM in this state anymore'
MERRY CHRISTMAS FROM GENERAL MOTORS
Safety Car
Joined: Sep 2002
Posts: 4,426
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From: philly
Originally Posted by GreenMonster
GM need a good housecleaning...
Also found this intersting -
Originally Posted by http://news.yahoo.com/s/cpress/20051122/ca_pr_on_na/gm_cuts
Oshawa car plant No. 2 is to close in 2008, eliminating 2,300 hourly workers and 230 salaried positions, as production plans expire for its products, the Pontiac Grand Prix and the Buick Allure, badged as the Lacrosse in the United States.
In St. Catharines, the Ontario Street West powertrain components facility, which employs 130, will close in 2008.
"The surprise in Canada was the closing of Oshawa 2," commented industry analyst Dennis Desrosiers. The plant has consistently ranked among the best auto factories in the Americas for quality and productivity.
"But we ended up with 3,600 jobs (cut) out of 30,000," DesRosiers said. "Now, GM has about 20 per cent of their (North American) operations in Canada, and so the fact that we ended up with about an 11 per cent cut - if anything Canada got away light."
In St. Catharines, the Ontario Street West powertrain components facility, which employs 130, will close in 2008.
"The surprise in Canada was the closing of Oshawa 2," commented industry analyst Dennis Desrosiers. The plant has consistently ranked among the best auto factories in the Americas for quality and productivity.
"But we ended up with 3,600 jobs (cut) out of 30,000," DesRosiers said. "Now, GM has about 20 per cent of their (North American) operations in Canada, and so the fact that we ended up with about an 11 per cent cut - if anything Canada got away light."
Safety Car
Joined: Sep 2002
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From: philly
Originally Posted by gavriil
The postive of all this unfortuante news is that there is/has to be a hard timeline now of when GM has to start building competitive/money making products in all categories, its 5 yrs or bust- one model cycle to win the US back to competitive sales.
Drifting
Joined: Feb 2001
Posts: 2,322
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From: UCLA
GM MIGHT file for bankruptcy...
Just received to unconfirmed reports that GM is going to file BK within the next few months, if not weeks.........
A friend who works in the automotive industry in mgmt told me.........can't give any more details........
Also another person I know who is suing GM received word from her lawyer that GM will not pay on an already agreed-upon settlement as they are filing.
You heard it here first........hopefully this is not true.
A friend who works in the automotive industry in mgmt told me.........can't give any more details........
Also another person I know who is suing GM received word from her lawyer that GM will not pay on an already agreed-upon settlement as they are filing.
You heard it here first........hopefully this is not true.
That was uncalled for...
Joined: Sep 2004
Posts: 7,288
Likes: 43
From: Toronto, Ontario
:ibmovetocartalkorcarnews:
Just think of how it will cripple the economy....I mean, one GM plant is closing in Ontario and people are getting theire undies in a bunch over that...
Hopefully its not true, but you never know in today business society...
Just think of how it will cripple the economy....I mean, one GM plant is closing in Ontario and people are getting theire undies in a bunch over that...
Hopefully its not true, but you never know in today business society...
I love cars!
Joined: Feb 2003
Posts: 3,807
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From: TEXAS
Calm down..do you know how many divisions of GM there are? Is this GM North America? GM Europe, whatever they call the Middle East division? It's not a corner store that's about to go out of business. They can still file bankruptcy adn operate, as Chrysler did.
Corpretty
Joined: Oct 2004
Posts: 1,665
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From: SF
Kmart filed for bankruptcy and they're still in business... does filing actually mean they will totally shut down? Or does it just clear their current debts and let them "start over" in a manner of speaking?
Senior Moderator
Joined: Aug 2002
Posts: 35,218
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From: Swansea, MA
Originally Posted by CLpower
The gov't will bail them out. These talks have been going on for almost a year now
It's probably cheaper to bail them out then it is to let them go belly up...
I think anyone with half a brain saw this coming. GM has way too many embedded problems that need fixing and they just do not have the leadership in place to make the necessary changes. They just aren't competitive anymore.
Senior Moderator
Joined: Aug 2002
Posts: 35,218
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From: Swansea, MA
I'm going to let this stay here for now, since it's a rumor we're talking about not really news...
But it probably makes sense to merge this with the Automotive news thread here:
https://acurazine.com/forums/showthread.php?t=324877
(mods feel free to merge this, I'm still thinking about doing it myself).
But it probably makes sense to merge this with the Automotive news thread here:
https://acurazine.com/forums/showthread.php?t=324877
(mods feel free to merge this, I'm still thinking about doing it myself).
NEW YORK (CNN/Money) - The chances that General Motors will file for bankruptcy are now about 30 percent, according to one industry analyst, following the bankruptcy filing by the company's former parts unit, Delphi.
Despite recently sustaining billions in losses from its core North American auto operations, GM shows a healthy balance sheet, with $32.3 billion in cash on hand.
It also said it has a fully funded pension plan, though that does not include retiree health care costs, which have become a significant burden for the automaker.
Auto analyst David Healy of Burnham Securities said he agrees that Delphi's bankruptcy is a significant hit for GM but one that he thinks the embattled automaker is well positioned to handle, given its strong balance sheet.
It also said it has a fully funded pension plan, though that does not include retiree health care costs, which have become a significant burden for the automaker.
Auto analyst David Healy of Burnham Securities said he agrees that Delphi's bankruptcy is a significant hit for GM but one that he thinks the embattled automaker is well positioned to handle, given its strong balance sheet.
meh...
DETROIT -- General Motors Corp. isn't considering bankruptcy protection as a way to solve its financial troubles, the automaker's chairman and CEO said Wednesday.
"As we look at the responsibilities we have to a broad range of constituents, as we look at what we need to do to make the business successful, as we look at our businesses around the world, we think there are significant costs to bankruptcy," Rick Wagoner said. "We don't think it's a good option."
"As we look at the responsibilities we have to a broad range of constituents, as we look at what we need to do to make the business successful, as we look at our businesses around the world, we think there are significant costs to bankruptcy," Rick Wagoner said. "We don't think it's a good option."
1919
Joined: Mar 2005
Posts: 21,467
Likes: 162
Originally Posted by GreenMonster
Just like the gov. did with Chrysler in the 80's...
It's probably cheaper to bail them out then it is to let them go belly up...
It's probably cheaper to bail them out then it is to let them go belly up...
dɐɹɔ ǝɥʇ ʇɐɥʍ
Joined: Jan 2004
Posts: 7,522
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From: Lexington, KY
I can't say I am surprised in the least. Bankruptcy, when used properly, can be a very helpful tool to rebuild a company. That being said I have no faith in GM ever getting their head screwed on straight.
They refuse to listen to what it is that people want, or possibly even scarier are incapable of building it.
They refuse to listen to what it is that people want, or possibly even scarier are incapable of building it.
Not Asian
Joined: Jul 2003
Posts: 13,409
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From: St. Louis
Originally Posted by Tireguy
I can't say I am surprised in the least. Bankruptcy, when used properly, can be a very helpful tool to rebuild a company. That being said I have no faith in GM ever getting their head screwed on straight.
They refuse to listen to what it is that people want, or possibly even scarier are incapable of building it.
They refuse to listen to what it is that people want, or possibly even scarier are incapable of building it.
The only problem with their products is that their lower end cars have excellent sales, but their high-end truck sales has been declining. The high-end trucks are their most profitable vehicles.