when a co. states it looses money.. isn't that compared to the previous years earnings? Aren't they still making a huuuuge profit , but the #'s are off when it comes to growth, etc ??
when a co. states it looses money.. isn't that compared to the previous years earnings? Aren't they still making a huuuuge profit , but the #'s are off when it comes to growth, etc ??
G
GM has cash reserves but is making zero profit from operations. Their loss is stated as their cash position compared to where they started their fiscal year.
So if they started with 30 billion in the bank and now have 26 billion they have a 4 billion loss.
GM has cash reserves but is making zero profit from operations. Their loss is stated as their cash position compared to where they started their fiscal year.
So if they started with 30 billion in the bank and now have 26 billion they have a 4 billion loss.
You don't lay of 30,000 employees unless you are worried about even bigger losses.
Didn't I read somewhere the other day that Toyota is poised this month to overtake GM as the largest auto manufacturer in the world?
They sell about 1/2 the amount of cars GM does but they more than double their profit.
GM is losing marketshare while Toyota is eating it up. Within 5-10 years toyota will be #1 and wouldn't be surprised if they own GM at then end of that.
GM sold their share of subaru awhile ago and toyota bought it up.
You don't lay of 30,000 employees unless you are worried about even bigger losses.
you lay off 30K employees because of the carrying costs and the fact that they are not needed in a restructuring. GM is just way too fucking fat. GM's factories are continually running at undercapacity, this costs huge money. Toyota's plants are typically all running 105% capacity.
GM's problems are simple.
UAW
Zero product differentation
Product overlap
Too many brands.
Fixing them requires getting rid of a shitload of people.
Ford is more or less on the right track in their approach. They are scaling down and trying to run as more of a small business. They realize they are losing market share that they once had simply because there weren't as many players in the industry. There is an article in TIME this month that interviews Bill Ford and he says that they massively underestimated Toyota as well as Hyundai.
The industry is currently being realigned and as a result, the big 3 who have been relying on brand loyalty and the whole "buy American" bullshit is no longer allowing them to exist the way they were. It is truly a global industry and they need to learn how to compete. Out of the domestic big 3 I think in 5-10 years, Ford will be in the best and positioned #2 behind toyota in global automakers.
GM is slowly moving in the right direction. Most people are too poorly informed to realize that some of their divisions produce higher quality cars that Toyota. Today there was a nice article in USA Today reviewing the Buick Lucerne in which they state it is "better in significant ways than the Toyota Avalon". Buick rates higher that Honda and Toyota in JD Powers inital quality surveys and much better than most all euro makers (except Jaquar and BMW). They also discuss Toyota's recall of the 2005 Avalon as Toyota forgot to weld the steering mechanism on many cars....
GM is slowly moving in the right direction. Most people are too poorly informed to realize that some of their divisions produce higher quality cars that Toyota. Today there was a nice article in USA Today reviewing the Buick Lucerne in which they state it is "better in significant ways than the Toyota Avalon". Buick rates higher that Honda and Toyota in JD Powers inital quality surveys and much better than most all euro makers (except Jaquar and BMW). They also discuss Toyota's recall of the 2005 Avalon as Toyota forgot to weld the steering mechanism on many cars....
I'd rather take a toyota in for one odd recall than suffer through GM's horrible dealership experience and sweet fuck all resale on a buick.
Look at the past 10 years and tell me who has made better cars and who has the better reputation. Good on GM for finally topping the list, but until they make that a common thing, the perception of GM is going nowehere.
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