I agree Hillar. When I was young back in the '70's and first buying cars I could never imagine the situation we are in now. Japanese cars were econoboxes that rusted away in 4 years, Jaguar was the only foreign car I would even remotely consider. BMW? they were a niche car that Volvo owners lusted after. I've said it before on this forum, The Big 3 had their heads up their butts as far back as then.

Too bad good ol' J.D. didn't say his favourite was a Beaumont Sport Deluxe...other guy would have looked so confused!

GM loses 9.6 Billion this quarter

http://money.cnn.com/2009/02/26/news/companies/gm_results/index.htm?postversion=2009022607

Quote:

NEW YORK (CNNMoney.com) -- General Motors posted a $9.6 billion net loss in the fourth quarter, a period in which its sales plunged and it needed a federal bailout to avoid filing for bankruptcy. The company also disclosed that its auto operations burned through $5.2 billion in cash during the last three months of the year. The company ended the quarter with cash of $14 billion. If not for the $4 billion federal loan it received in the quarter's closing days, GM's cash level would have fallen below the $11 billion to $14 billion in cash the company has said it needs to continue operations. Since receiving the first installment of that loan, GM (GM, Fortune 500) has gotten another $9.4 billion in federal assistance. The company asked for an additional $16.6 billion in the turnaround plan it submitted to the Treasury Department last week. GM disclosed Thursday it will need this money in 2009 to weather the current downturn. The company also said it anticipates its outside auditors will issue a statement on whether the company is a "going concern." The statement could be important not only to investors but to federal officials who are determining whether the company is viable in the long-term.

If the government determines GM is not viable, it would demand immediate repayment of the company's loans.

The auditor's statement will be included in GM's year-end results filing with the Securities and Exchange Commission. GM disclosed Thursday it had filed for a two-week extension to submit that report.

As bad as the net loss was, it could have been worse. The company posted a $533 million gain because of the fact that GMAC, the finance unit in which it held a 49% stake during the quarter, got its bond holders to agree to swap debt for equity. GMAC become a bank holding company as a result of the debt swap, which significantly reduced GM's stake in the unit.

Excluding special items, GM lost $5.9 billion, or $9.65 a share, in the quarter. Analysts surveyed by Thomson Reuters had forecast a loss of $7.39 a share, compared to a profit of 8 cents a share on that basis a year ago.

The operating losses were particularly pronounced in GM's core North American market. It lost $3.5 billion before taxes in the quarter, up from a $1.3 billion loss in North America a year earlier.

Revenue in the North American unit plunged about 32% to $19.3 billion. GM's market share also slid 1.7 percentage points to 21%.

But GM, which now sells more than half its vehicles outside of North America, is facing challenges around the globe.

Losses more than quadrupled in Europe, and the company lost money in its Asia-Pacific and Latin America-Africa-Middle East units. GM posted profits in those two regions a year ago.

Overall revenue at GM plunged 34% to $30.8 billion, significantly worse than the Thomson-Reuters forecast of $35.1 billion.

For the full year, GM reported a net loss of $30.9 billion. The automaker has posted net losses of $82 billion over the past four years as its U.S. sales and market share plunged and it closed plants and slashed staff in an unsuccessful effort to stem losses.


Here's another story: http://www.reuters.com/article/topNews/idUSN2653343220090226?feedType=RSS&feedName=topNews

Just as alarming is this tidbit:

Quote:

The automaker also warned its pension plans for hourly and salaried workers were underfunded by about $12.4 billion as of the end of 2008, raising the risk of an even greater funding gap in the years ahead.

and this:

Quote:

That marks the second-largest loss for the 100-year-old automaker behind only the $38.7 billion loss for 2007. GM has lost $82 billion over the past four years and cut 92,000 jobs over that period.

On another forum I am on, there people unequivocally defending GM's "rights" to receive bail-out monies.  Here is one of my responses:

Why keep throwing good money after bad? We are ALL going to end up paying for these hand-outs that work out to like $500,000 per job.  It's like somebody coming along and putting an extra $100,000 mortgage on all of our houses - this has just got to stop!

I don't think any of us are happy about seeing GM going down, if you check my posts, I have been railing against GM management and the unions for years, this isn't just some johnny come lately thing for me. The reason I have been doing it is because I DO care, and it pisses me off to no end to see the car company that I grew to love when I was a child in the 60's piss it all away when it was completely unnecessary. There was a time when GM built exciting cars for enthusiasts AND built daily drivers for the masses that everyone wanted.

I am staggered by the amount of the losses. As I have said before, it is beyond me why Wagoner and the rest of top GM management is still there. They presided over the creation of this mess, and they have been left in control? Who, on any logical or reasonable basis, would think they have the wearwithal to do what is necessary to turn the company around?

 I still can't get over that loss number:

$82 BILLION over the last four years
The company I work for used to be called Falconbridge, I'm sure some of you have heard of it, we were one of the largest copper and nickel producers in the world.  Xstrata purchased us in 2006 for approximately $20 billion.  GM has lost enough money over the last 4 years to have bought four Falconbridges.  It is absolutely mind-boggling...

73SC wrote:

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Hillar, I believe it is actually criminal, the Enron guys look like kindergarten compared to this. 

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It all boils down to the incestuousness of the corporate structure of major corporations like General Motors. Yes, shareholders elect the Board of Directors. Yes the Directors appoint senior management. But.........and it's a very big BUT......little ol' you and me, the average Joe shareholder cannot exercise enough voting power to oust the Board.

The Board and Management have so many shares that they can stay in control, seemingly, forever. And, you can bet that Wagoner and the rest of the senior managers sit on the Boards of the companies run by many of GM's Directors. See what I mean????? Incestuous.



Until these number crunchers and salesmen are dragged out of head office kicking and screaming, to be replaced by people with a freakin' PASSION for the automobile, nothing will get better.

Any management team that allowed the Aztec (Aztek?) to be foisted on the public deserves to be drawn and quartered.

 

Isn't the problem really the coolant and the ill advised 160,000 km life they claimed for it. A two year coolant cycle regiment has avoided these problems BUT it's still a problem they created!!!!

Just for the record, GM is not the only manufacturer with head gasket woes.

Earl = classic Caddy fan

Ray = contemporary Caddy fan

Now you Caddy guys play nice!

73SC wrote:

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Astro Jet wrote:

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Earl = classic Caddy fan

Ray = contemporary Caddy fan

Now you Caddy guys play nice!

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LOL ! I like them all Hillar. I like Earl too!  

I'm touching wood , but until mine coughs up some coolant and the limp home mode kicks in at 248 degrees I'm saying the Northstar is one of the best engines ever made, Ward's Automotive agrees.  190,000 km and still ticking.

 

 

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Gee Thanks Ray.  For the record I have owned 7 NorthStar Cadi's. Only had that problem with one. BUT when I worked at the car lot I went ot the Toronto and Kitchener auto auctions weekly. At that time (99-2003) ther was at least one or two a week there with bad head gaskets. A friend of mine bought a 01 DTS last year and had to repalce them on it. There is a shop in Tillsonburg that ONLY does headgaskets on NorthStars and he has a yard full of them waiting to be done. I'm very careful when I look at one now. Always smell the exhaust, if it smells sweet like glycol, move on to the next one. Coincidentally Ray, geezer Cadi's from the city seem to be the worst. Reason? I was told it's due to carbon build up and short distance driving, hot/cold cycles.

 

eeluddy wrote:

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Coincidentally Ray, geezer Cadi's from the city seem to be the worst. Reason? I was told it's due to carbon build up and short distance driving, hot/cold cycles.

 

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That is not surprising, that's why I practice the WOT tune up on a regular basis.

 

73SC wrote:

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eeluddy wrote:

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Coincidentally Ray, geezer Cadi's from the city seem to be the worst. Reason? I was told it's due to carbon build up and short distance driving, hot/cold cycles.

 

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That is not surprising, that's why I practice the WOT tune up on a regular basis.

 

 

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As you mentioned earlier, coolant changes help also, but you have to use DexCool and add the GM coolant supplement tablets. They do sound great at WOT don't they?