Discuss Detroit Archives - Beginning January 2007 Good news at GM Previous Next
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Milwaukee
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Username: Milwaukee

Post Number: 997
Registered: 08-2006
Posted on Wednesday, March 14, 2007 - 10:35 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

http://www.freep.com/apps/pbcs .dll/article?AID=/20070314/BUS INESS01/70314010

950 million dollar profit. Hopefully, this is just the beginning of the turn around.
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Bobj
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Username: Bobj

Post Number: 1783
Registered: 11-2003
Posted on Wednesday, March 14, 2007 - 11:14 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Nice start, hope it continues
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Thejesus
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Username: Thejesus

Post Number: 733
Registered: 06-2006
Posted on Wednesday, March 14, 2007 - 11:23 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

good stuff...good to see our #1 company is still capable of generating a billion-dollar profit in a period of 3 months...

Might Rick Wagoner become the new Lee Iacocca?
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Dnvn522
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Username: Dnvn522

Post Number: 201
Registered: 11-2004
Posted on Wednesday, March 14, 2007 - 11:26 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

The company reported record annual revenue of $207 billion

Wow. I wonder how much of this is related to the sale of GMAC?
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_sj_
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Username: _sj_

Post Number: 1754
Registered: 12-2003
Posted on Wednesday, March 14, 2007 - 11:26 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Sold less vehicles and still turned a profit for the quarter

EDIT: Meant to say less revenue and still turned a profit.

(Message edited by _sj_ on March 14, 2007)
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Sharmaal
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Username: Sharmaal

Post Number: 1021
Registered: 09-2004
Posted on Wednesday, March 14, 2007 - 11:27 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Uh...alot of that is a one time gain from the sale of GMAC.

Very good progress nonetheless, but not as amazing as it sounds.


$180 million is the amount excluding GMAC.
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Lilpup
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Username: Lilpup

Post Number: 1849
Registered: 06-2004
Posted on Wednesday, March 14, 2007 - 11:27 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

It's good buzz overall

(downer - still losing in North America)
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Jt1
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Username: Jt1

Post Number: 8525
Registered: 10-2003
Posted on Wednesday, March 14, 2007 - 11:27 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Still a lot of structural costs to deal with. The problem of the timing with this is now the UAW will be even less cooperative with their negotiations this year.

For the long term health of the company I think it would have been better to have a bad 4Q06 and 1Q07.

The UAW will be too shortsighted to see that there are still many real issues that GM faces and demnad everything now that they appear to be the strongest of the Big 3. The UAW will certainly hurt the structural cost reductions that GM has been working on for years by demanding more than what is reasonable.

I give Wagoneer and his leadership team credit for making great strides in cost and vehicle design over the past few years.
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Thejesus
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Username: Thejesus

Post Number: 734
Registered: 06-2006
Posted on Wednesday, March 14, 2007 - 11:28 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Looks like there's still a lot of pessimism out there...

http://info.detnews.com/autost alk/lettersindex.cfm?topic=GM_ turnaround&forum=autostalk

I know the article said the company would have negative cash flow for 2007, but at this point, a turning a profit in Q4 of last year is about the best news there could be
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Jt1
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Username: Jt1

Post Number: 8526
Registered: 10-2003
Posted on Wednesday, March 14, 2007 - 11:30 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

I don't have a lot of faith in the opinions of the people on the Freep/News boards. Those have got to be the most negative people around.
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Livernoisyard
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Username: Livernoisyard

Post Number: 2766
Registered: 10-2004
Posted on Wednesday, March 14, 2007 - 11:31 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

A Forbes report today centered on still another UAW organizing effort targeted at the foreign companies.
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_sj_
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Username: _sj_

Post Number: 1756
Registered: 12-2003
Posted on Wednesday, March 14, 2007 - 11:37 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

Uh...alot of that is a one time gain from the sale of GMAC.



Yes, but they did it with less revenue, which is what I meant to say the first time.
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Dabirch
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Username: Dabirch

Post Number: 2135
Registered: 06-2004
Posted on Wednesday, March 14, 2007 - 11:41 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

Those have got to be the most negative people around.



I guess you haven't been over to "that other" site lately...and you are missed.
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Milwaukee
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Username: Milwaukee

Post Number: 998
Registered: 08-2006
Posted on Wednesday, March 14, 2007 - 12:48 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I'm glad to hear this news. I really want GM to turn things around and quickly. Just imagine what Detroit would be like if Ford and GM were both profitable. I can't help but things would be going much better for the city and the state.
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Lilpup
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Username: Lilpup

Post Number: 1850
Registered: 06-2004
Posted on Wednesday, March 14, 2007 - 1:05 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

not until North American sales pick up so that North American employment can, too
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Dnvn522
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Username: Dnvn522

Post Number: 202
Registered: 11-2004
Posted on Wednesday, March 14, 2007 - 3:18 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

General Motors Considering Investment At Saginaw Plant

http://www.wnem.com/Global/sto ry.asp?S=6222071

"If General Motors goes through with the venture, the company will invest roughly 225 million dollars into the Orion Township assembly plant and the metal casting facility in Saginaw."
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Rhymeswithrawk
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Username: Rhymeswithrawk

Post Number: 399
Registered: 11-2005
Posted on Wednesday, March 14, 2007 - 3:21 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

"Good news at GM"

Somebody pinch me.
Haven't seen those two words coupled with the name GM in quite some time.
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Livernoisyard
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Username: Livernoisyard

Post Number: 2781
Registered: 10-2004
Posted on Wednesday, March 14, 2007 - 7:29 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Tom Walsh of the Free Press was interviewed on WJR this evening about GM, and he only had "guarded optimism" over GM's prospects. He said that GM still has and will have a negative cash flow problem, and GM cannot continue doing that and survive. He further stated that GM must continue squeezing the UAW and its suppliers for the foreseeable future and that its drop in market share has to stabilize.

(Message edited by LivernoisYard on March 14, 2007)
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Perfectgentleman
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Username: Perfectgentleman

Post Number: 255
Registered: 03-2006
Posted on Wednesday, March 14, 2007 - 7:34 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I welcome this news but GM's earnings reports have been notoriously inaccurate for several years. They announce results and several months later they restate the earnings for that period, sometimes with bigger losses or less profits.
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Milwaukee
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Username: Milwaukee

Post Number: 1002
Registered: 08-2006
Posted on Wednesday, March 14, 2007 - 7:39 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I heard the same thing on NPR tonight. I do hope things are actually going better for GM. I would be disappointed if it turns out they had the numbers wrong. I've got my fingers crossed.
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Livernoisyard
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Username: Livernoisyard

Post Number: 2782
Registered: 10-2004
Posted on Wednesday, March 14, 2007 - 7:42 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

GM might also be adversely affected with some of its bad mortgages through its 49% of GMAC, and possibly its sale proceeds from selling 51% of GMAC may have to be reduced as a result of mortgage losses. If so, perhaps all of the positive net earnings from the past quarter may vanish after readjustment.

As Gilda Radner would say, "There's always somethin'."
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Detroitplanner
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Username: Detroitplanner

Post Number: 1079
Registered: 04-2006
Posted on Wednesday, March 14, 2007 - 8:37 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

No kiddin LY, I never thought that being forced to sell off more of GMAC would have been a good thing a year ago, but these days it may have been a blessing. I could have been a lot worse for them if they were still whole owners of the finance company.

A year ago I thought they were shooting themselves in the foot by getting rid of it, but like you and Gilda said, "Its always something"

Defintiely a double-edged sword.
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Sknutson
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Username: Sknutson

Post Number: 825
Registered: 03-2004
Posted on Friday, March 16, 2007 - 1:54 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Now if they would only build the Chevy Volt, I might by a GM.
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Scottr
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Username: Scottr

Post Number: 411
Registered: 07-2006
Posted on Friday, March 16, 2007 - 2:09 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Although I already buy GM (with half my family employed by GM, i have little choice), I agree, Sknutson, and I believe many others feel the same about the Volt. I hope they've put as much resources as possible into that project to get it out as soon as possible - Lutz said at Geneva they want it on sale by 2010. I'm sure the final product won't look like the concept (unfortunately), but even the idea itself is fantastic and could seriously change a lot opinions of the company. Hopefully it performs as well in real life as in theory and they don't do something stupid like a cheap plastic interior.
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Scottr
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Username: Scottr

Post Number: 412
Registered: 07-2006
Posted on Friday, March 16, 2007 - 2:22 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

LY - you are right, actually I read somewhere that they took a something like a 284 million loss last quarter because of the subprime mortgages. it's also why they have to put $1 billion into GMAC this quarter, because it lost value because of those mortgages, and part of the deal was that it had to be worth a certain amount when the deal closed. Other than that, it appears they may have gotten out at the right time.

PG - that's been common among large companies, not just GM, because of accounting changes since Enron. It is hardly a GM-specific problem, although admittedly they seem to have been more prone to errors, but i would expect such from any company of their size.

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