GM Volt Forum banner

1 - 9 of 9 Posts

·
Registered
Joined
·
35 Posts
Discussion Starter #1
Do the record GM losses recently announced worry anyone other than myself. 38.7Bn in a year is quite a lot, it may hurt their ability to research or subsidize part of the cost of the Volt.
 

·
Registered
Joined
·
4,085 Posts
Do the record GM losses recently announced worry anyone other than myself. 38.7Bn in a year is quite a lot, it may hurt their ability to research or subsidize part of the cost of the Volt.
Over the past couple years, I've seen mainstream analysts predict the end of the American automakers within 5 to 10 years. With the UAW's recent acceptance of 71 cents on the dollar against future liabilities, GM's push to develop the flextreme platform and Congress's action to pass higher CAFE standards to protect this strategy, I am very hopeful for a turn-around.

Yes, the big 3 will have more bad news to report in the coming quarters, but 2010 and beyond should really show how much these efforts have paid off. Also, notice in the latest news that the hit came from GMAC, where GM had given up more than half of those revenues for a large cash infusion. Things seem to be leveling off, and not plummeting. Moreover, the stock didn't move on the news, so analysts don't seem to think it is indicative of future problems.
 

·
Registered
Joined
·
423 Posts
There is still alot of writedowns happening. Looks to be more in the future. GM has upped the offer of buyouts today...and extended it to all of its 74,000 UAW workers.

I guess if you are jobless in Michigan you can apply for one of newly created $14/hour jobs that paid used to pay $28+

Anybodies guess if it is too little too late....but it has to be done regardless.
 

·
Registered
Joined
·
105 Posts
GM Hit

GM is committed and going gun-ho to get the Volt project on the road. Quite literally this is their future, make no bones about it. They know it and the sharks circling (Honda, Toyota) know it. That's why if Toyota and companies come out with an E-REV first, it puts GM that much further behind the curve. As it stands right now, I firmly believe that GM is ahead of the curve on E-REV's right now. Toyota was caught off guard with the Volt announcement in 2007. They were thrilled with the success of the Prius and were not intent on producing an E-REV or fully electric car any time soon.

With the Volt now firmly in the production que, Toyota and the others are now seeing the writing on the wall. They know the Volt as well as other GM electric vehicles will change the entire driving/oil based paradigm.

They (GM) have to succeed and they know it.
 

·
Registered
Joined
·
42 Posts
Do the record GM losses recently announced worry anyone other than myself. 38.7Bn in a year is quite a lot, it may hurt their ability to research or subsidize part of the cost of the Volt.
GM is sitting on $37 Billion cash reserves. Their loss you quoted was mostly due to the writeoff of future health care benefits transferred to the union. The actual 2007 loss was more like $40 Million. :confused:
 

·
Registered
Joined
·
69 Posts
The actual 2007 loss was more like $40 Million. :confused:
I agree $40 million is nothing to a company that sold 9 million cars this year.
E-Flex is a game changer, if GM gets the demand/supply curve for peak oil right, they will just be raking it in. I predict that within 10 years only E-flex or BEV systems will be sold. GM is leading the pack at this stage.
 

·
Registered
Joined
·
4,085 Posts
I agree $40 million is nothing to a company that sold 9 million cars this year.
E-Flex is a game changer, if GM gets the demand/supply curve for peak oil right, they will just be raking it in. I predict that within 10 years only E-flex or BEV systems will be sold. GM is leading the pack at this stage.
I agree with your assessment, but I don't believe 100% BEV's will be significant until the batteries become rapid recharge, and the prices for the vehicles become reasonable.
 

·
Registered
Joined
·
1 Posts
GM is looking toward the future. It will cost now and pay off later.
I bought a Toyota Prius in 2001 for 23k, it cost Toyota over 40k
to make the car. Toyota took the loss knowing it would pay off in the future.
I hope GM will do the same.
 
1 - 9 of 9 Posts
Top