GM Posts Massive Loss

GM posted a $1.2 billion loss on drastically reduced revenue.

The Authority wrote:

GM posted a $1.2 billion loss on drastically reduced revenue.

That's the bad news.
The good news it wasn't quite as big a loss as last FY.
Also--GM claims it will start paying it's loan to the US Govt. next year.
It was expected they'd do the same for our Govt., but GM has reneged here and doesn't intend to.
Between their fiasco in Europe and their exploitation of our taxpayers, GM is making some very stupid political gaffes.
Market share here is expected to tank, and Europeans and Brits are really ticked--expect those brands to tank as well.

Let's put the fiscal obligation GM has to the US Feds into a proper perspective.

Between its loan from the Government and the money the Govt. paid to buy into GM,(two different issues folks!) the total cost to taxpayers exceeds 50 billion dollars to date.
That's $50 billion big ones folks!!
So GM not only has to pay the Govt. back its loan, but in order for the Govt. to recoup its ownership investment in GM, it will have to sell its equity in GM at some point--hopefully for what it paid for it, or else the taxpayers will be stuck.

Is that possible?
Only if the stock in GM goes to a value at or better that 60 billion at some point in the future.
That's the discounted time value of the Govt's equity in GM.

Will that happen?
Probably not likely, because the best GM value has ever reached in the past was in 2000, when the company's vaalue for stock purposes was only 50 billion.

So the taxpayers are going to have to eat whatever the difference is when the Govt. tries to sell its equity in GM--if it ever does!
But what's a few billion here or there, right?

As long as GM keeps losing money from its unprofitable automaking operations, I don't see how they'll be able to repay anything.

An IPO for a money-losing dinosaur will be disastrous. They only got one shot at it.

unprofitable automaking = T O Y O T A

end of story

Ah Vance leaves behind another smelly dookie pile in the wrong bathroom. He just can't stay focused, and oft strays into the wrong depository.

GM's loss is proof that it loses money on every vehicle produced. Compared with Ford and Toyotas profit for the quarter, you can truly see the gaps in GM's business plan. For years they made money from GMAC off strong interest rates, but since the lending has collapsed, GM is heading for a future of losses.

Sorry Libtards

Real and True Americans are slowly taking this country back

I know that piss'es you all off

GO Palin.... 2012

Vance1 wrote:

Sorry Libtards
Real and True Americans are slowly taking this country back
I know that piss'es you all off
GO Palin.... 2012

Beep beep beep....beep beep beep, another horrific pile of dookie-ball left behind by Vance.