GM Lost Another $6 Billion in Three Months: Are You Ready To Buy a U.S. Made Car Now?

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….

Related:
Ford May Suffer as Chrysler Shutdowns Reach Suppliers

Obama’s flawed auto logic

Obama Must Think U.S. Voters Are Morons: Offers Cuts in Teaspoons As We Go Over Niagra Falls In Spending, Debt

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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.”

Read the rest:
http://www.washingtonpost.com/wp-dyn/
content/article/2009/05/07/AR20090
50701095.html?hpid=topnews

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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.

Read the rest:
http://money.cnn.com/2009/04/28/
autos/polk_study/?postversion=2009
042814

And don’t forget: the masters of the auto industry bailout effort have never run any companies before…
http://hotair.com/archives/2009/
05/07/aip-column-the-whim-of-a-madman/

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One Response to “GM Lost Another $6 Billion in Three Months: Are You Ready To Buy a U.S. Made Car Now?”

  1. Tom Blumer Says:

    Not only that, Ford had higher revenues than GM worldwide in the first quarter:

    http://www.bizzyblog.com/2009/05/07/ford-beats-gm-in-1q09-worldwide-revenues/

    Polk didn’t ask the question everyone really wants answered: Will you buy your American car from bailed-out GM, bankrupt Chrysler, or still-independent Ford?

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