GM Losses
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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.
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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.
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.
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.
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.
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.
I agree $40 million is nothing to a company that sold 9 million cars this year.The actual 2007 loss was more like $40 Million.
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.
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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.
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You're probably right that the extra complexity of a hybrid will always be more expensive. That's why I'm keeping my eye on EESTOR.
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