Discussion
[b]From the BBC news website, business section-
http://news.bbc.co.uk/1/hi/business/4700469.stm[/b]
US losses drive GM into the red
GM's discount spree may have put its profits at risk
Losses of more than $1bn at General Motors'(GM) North American unit have left the carmaker in the red once more.
GM unveiled global net losses of $286m (£164.4m) for the three months to June - down from profits of $1.38bn during the same time in 2004.
North American losses of $1.19bn wiped out profits in other countries as GM's global market share grew.
It was more bad news for GM which saw its bonds downgraded to junk after its profits fell 40% in the first quarter.
A junk status rating suggests that a company is more likely to default on its debt. Credit rating agencies took the step after GM posted a $1.1bn loss during the first three months of the year - its worst since 1992.
Ford and GM have been struggling for a long time now...
And they own a lot of other brands as well. GM- SAAB, Subaru, etc, Ford- Jaguar, Aston, Land Rover, Mazda.
Is meltdown imminent!
http://news.bbc.co.uk/1/hi/business/4700469.stm[/b]
US losses drive GM into the red
GM's discount spree may have put its profits at risk
Losses of more than $1bn at General Motors'(GM) North American unit have left the carmaker in the red once more.
GM unveiled global net losses of $286m (£164.4m) for the three months to June - down from profits of $1.38bn during the same time in 2004.
North American losses of $1.19bn wiped out profits in other countries as GM's global market share grew.
It was more bad news for GM which saw its bonds downgraded to junk after its profits fell 40% in the first quarter.
A junk status rating suggests that a company is more likely to default on its debt. Credit rating agencies took the step after GM posted a $1.1bn loss during the first three months of the year - its worst since 1992.
Ford and GM have been struggling for a long time now...
And they own a lot of other brands as well. GM- SAAB, Subaru, etc, Ford- Jaguar, Aston, Land Rover, Mazda.
Is meltdown imminent!
racefan_uk said:
I didn't think GM owned Subaru. I thought that was the IM group.
It may have changed though. I certainly think that GM is on its way down the pan though.
IM Group are the UK importers.
GM have a stake in Subaru, and also involvement with other Japanese manufacturers Suzuki and Isuzu, and they all have relationships with each other. It's all very complicated!
It's more straightforward with Saab - GM own them outright.
I was in the US recently and the employee discount program was said to be boosting sales, even though some of the discounts were less than before the scheme! Ford was running it too. Interesting for me, as I used to work for Ford, and letting someone else (other than close family) use your discount was a real no no!
Yesterday I saw an iconic picture of the current GM mess - an early '50's Chevy or GMC pickup pulling a '90's GMC or Chevy with a tow rope. Like Granddad bringing a passed-out drunk, ner' do well grandson home from the pub.
Sad, really, back before say 1965 GM built damn few turkeys, but now outside of the 'vette and some of the trucks builds little else!
Practically all '60's GM products are collectible classics (to some extent). Practically no '70's and later are. (really the good period went to 71 or 72, but you get my point) The '74 linup was 100% pure crap.
They are in trouble because they build crap cars.
Sad, really, back before say 1965 GM built damn few turkeys, but now outside of the 'vette and some of the trucks builds little else!
Practically all '60's GM products are collectible classics (to some extent). Practically no '70's and later are. (really the good period went to 71 or 72, but you get my point) The '74 linup was 100% pure crap.
They are in trouble because they build crap cars.
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