The automaker General Motors spent $10.2 billion more cash than it took in, as a sales slump cut revenue, during the first three months of this year.
This morning, GM posted a loss of $6 billion for the first three months of this year.
GM has to give a plan to the federal government by June 1 or go into bankruptcy.
Chrysler is in bankruptcy court and the auto parts manufacturers are saying all this turmoil will mean many of them may go out of business.
Ford is doing just O.K. but with all the other trouble in the industry and among suppliers; who knows what Ford’s future may bring.
Are you ready to buy an American made car now?
The Obama Administration is taking dramatic action to restore the economy. Part of restoring the economy requires the restoration of trust and confidence.
With tea party protesters taking to the streets last April 15; one has to ask: has Obama restored trust? Even though his poll numbers are high, something is wrong….
From The Washington Post
General Motors, facing the prospect of bankruptcy, this morning posted a loss of $6 billion for the first three months of this year.
The automaker’s revenue continued to slide because of the ongoing economic crisis and auto sales slump. But the losses were somewhat offset by “strong structural cost reduction due to aggressive restructuring efforts,” the company said, and by a big infusion of help from the federal government.
GM has until the end of the month to further cut costs and win stakeholder concessions. If the automaker, which has received $15.4 billion in federal loans, does not meet this government-imposed deadline, it will be forced to reorganize in bankruptcy court.
As soon as next week, the company is expected to notify 2,600 of its 6,000 or so dealers that they will be eliminated from the GM network. The company announced those closings last month as part of the restructuring plan.
“This is a defining moment in the history of General Motors, and we are committed to our plan, which we believe will lead to a stable and sustainable operating structure with a strong balance sheet,” GM chief executive Fritz Henderson said in a statement.
“Our goal is to fix this business once and for all to position ourselves to win in the long-term. That will be achieved by putting the customer first in all we do, focusing on fewer, stronger brands and developing great products that lead in design, technology, quality and fuel efficiency.”
From April 28, 2009;
NEW YORK (CNNMoney.com) — Nearly three-quarters, or 72%, of consumers say they would buy an American-made car or truck despite GM’s and Chrysler’s woes, according to a new survey.
R.L. Polk & Co. said that 55% of the 1,361 consumers it polled said they plan to buy their next vehicle within the next two years, which could bode well for the struggling automakers.
“With all the doom and gloom in the U.S. auto industry, it’s encouraging that consumers are indicating that they plan to buy a vehicle in the relative near term,” said Lonnie Miller, Polk’s director of industry analysis.
However, the outlook for the auto industry remains grim, especially given historically low levels of consumer confidence, said Miller.
“When it comes to the car buying decision, that’s a big moment of truth,” he said. And consumers are often hesitant to take the plunge for fear “it will come back and bite them.”
To that end, the study showed that consumers are holding onto their cars longer, with 64% saying they were “extremely or very likely” to keep their vehicle longer than they would otherwise.
And don’t forget: the masters of the auto industry bailout effort have never run any companies before…