Vikings Message Board.Com

http://biz.yahoo.com/ap/080801/earns_gm.html


There stock is worth less than toilet paper already or close to it.

In that respect, the negative cash flow in the second quarter is overstated," he said.

Young said GM ended the quarter with $21 billion in cash and $5 billion available through credit lines for total liquidity of $26 billion, which he called a strong position.

A fifteen Billion Dollars loss in one quarter is a strong position ? Man what are they smoking at GM headquaters

Boy the auto industry has had some tough times....glad I dont live in Detroit.

VikingMachine wrote:Boy the auto industry has had some tough times....glad I dont live in Detroit.

It's not just Detroit, though. There are plants all over the country... even one in St Paul. I know the St Paul plant managed to survive the latest round of closures, and they're going to start building cars instead of trucks, but how long will that last? Closing of that plant will be yet another blow to the economy of the state of Minnesota.



Dawn

Yeah, auto's soft right now. And yeah, it affects the whole nation. I work in the foundry industry, which manufactures OEM parts for the auto industry, and the foundries specializing in auto are hurting bad. And they are everywhere from Alabama to Wisconsin to Virginia; often in small towns that really depend on the plants to survive. A foundry goes down, a small town somewhere dies...

I don't want to get political... Geoff will toss me for a week!

There was a day, not long ago, that it was said one in five jobs in this country were involved with the auto industry. Everything from parts to the packages they were put in... so this is a big deal and hits home like you say.

Fired? No. Walk away with a MASSIVE severence package? Sounds about right.

Colinito wrote:Yeah, auto's soft right now.

It's worst than soft. 18 months from now I expect either Ford or GM will have declared bankruptcy. Wouldn't rule the possibly of both happening. They both have very shaky balance sheets, can't raise capital and have been absorbing huge losses for some time now. That can't go on for too much longer. The burn rate at Ford is actually worse than it is at GM.

GM missed the boat on spinning off GMAC. That segment of their business could have fetched a nice price about six months ago. But with the rise in gas prices their lease paper isn't looking all that good right now. They have tons of paper on those big SUVs and when they come off lease their book values are going to be nowhere close to their market value.

Both Ford and GM were making huge profit margins on their SUVs. They have to sell three mid-sized cars to generate the same profits as one SUV. It was just too tempting for them to go for the low hanging fruit. Now the race is on to convert their production lines to more fuel efficient models. That takes time and money and both of those commodities are in short supply with both Ford and GM.

We'll be looking at testing the 'too big to fail' mentality pretty soon. Are the taxpayers going to bail them out?

its not the auto makers....its the oil industry .....they are driving cost up on evry thing.