GM posts 5th straight quarterly loss, says it may run out of cash by mid-2009

Canadian Poncho · A Poncho Legend!

GM Chrysler Merger

4SPEED427 · A Poncho Legend!

I'd like to think it won't happen. For once I hope you're wrong Todd!

Maybe I stepped down from my manager job just in time. Otherwise I'd have to wear a "Direct Connection" T-shirt to work!

Canadian Poncho · A Poncho Legend!

I was also told Chrysler will build the cars, GM will market them.
We'll see..

65deluxe · Addicted!

Read on another board that GM is expected to make an annoncement Nov 7th. Rumor has it that it will be the Chryco merger.

67BBSD · Canadian Poncho Superstar!

should be interesting

RDubya · Poncho Master!

I was just looking on the news wire at work for any info. Last story i can find about any merger news was Oct. 28th. Nothing more recent that i can see. I did find this story about Toyota.

JAPAN-TOYOTA-EARNINGS

INDEX: BUSINESS, AUTOMOTIVE

TOKYO -- IT'S THE LATEST STUNNING SIGN THAT THE GLOBAL SLOWDOWN IS TAKING A TOLL ON JAPAN'S MIGHTY AUTOMAKERS TOO.
TOYOTA HAS SLASHED ITS ANNUAL EARNINGS FORECAST TO LESS THAN A THIRD OF WHAT IT WAS THE PREVIOUS FISCAL YEAR.
TOYOTA HAS BEEN RIDING HIGH ON THE SUCCESS OF ITS PRIUS (PREE'-US) HYBRID AND CAMRY SEDAN.
THE COMPANY REPORTED TODAY THAT ITS JULY-TO-SEPTEMBER QUARTER NET PROFIT PLUNGED 69 PER CENT TO 1.4-(B) BILLION DOLLARS U-S.
A CONTRACTION IN THE VITAL U-S AUTO MARKET, THE GLOBAL CREDIT CRUNCH, AND THE RECENT JUMP IN THE YEN FROM ABOUT 118-YEN-TO-A-DOLLAR A YEAR AGO TO 100-YEN LEVELS -- WHICH ERODES OVERSEAS INCOME -- HAVE DEALT A SERIOUS BLOW TO JAPAN'S BIGGEST AUTOMAKER.
TOYOTA CUT ITS NET PROFIT FORECAST FOR THE YEAR ENDING MARCH 2009 TO 5.5-(B) BILLION DOLLARS U-S.
(THE ASSOCIATED PRESS)

67BBSD · Canadian Poncho Superstar!

blacktransam wrote:

I was just looking on the news wire at work for any info. Last story i can find about any merger news was Oct. 28th. Nothing more recent that i can see. I did find this story about Toyota.

JAPAN-TOYOTA-EARNINGS

INDEX: BUSINESS, AUTOMOTIVE

TOKYO -- IT'S THE LATEST STUNNING SIGN THAT THE GLOBAL SLOWDOWN IS TAKING A TOLL ON JAPAN'S MIGHTY AUTOMAKERS TOO.
TOYOTA HAS SLASHED ITS ANNUAL EARNINGS FORECAST TO LESS THAN A THIRD OF WHAT IT WAS THE PREVIOUS FISCAL YEAR.
TOYOTA HAS BEEN RIDING HIGH ON THE SUCCESS OF ITS PRIUS (PREE'-US) HYBRID AND CAMRY SEDAN.
THE COMPANY REPORTED TODAY THAT ITS JULY-TO-SEPTEMBER QUARTER NET PROFIT PLUNGED 69 PER CENT TO 1.4-(B) BILLION DOLLARS U-S.
A CONTRACTION IN THE VITAL U-S AUTO MARKET, THE GLOBAL CREDIT CRUNCH, AND THE RECENT JUMP IN THE YEN FROM ABOUT 118-YEN-TO-A-DOLLAR A YEAR AGO TO 100-YEN LEVELS -- WHICH ERODES OVERSEAS INCOME -- HAVE DEALT A SERIOUS BLOW TO JAPAN'S BIGGEST AUTOMAKER.
TOYOTA CUT ITS NET PROFIT FORECAST FOR THE YEAR ENDING MARCH 2009 TO 5.5-(B) BILLION DOLLARS U-S.
(THE ASSOCIATED PRESS)

Wow ! we're in for a rough ride

-- Edited by 67BBSD at 13:58, 2008-11-06

eeluddy · Uber Guru

I think they will have to wait until Obama is sworn in to get any money from the guv'ment.

57poncho · Uber Guru

I'm a true GM fan and Dodge has always been my least favorite . My Dads been selling GM for 35 years and he hates Dodge with a passion he's 71 and works 6 days a week and still loves it but this might just make him retire. I wounder if maybe I get my dislike for Dodge from him? No can't be i'm not like him at all.

Canadian Poncho · A Poncho Legend!

No news yet. I guess my sources were wrong.

im2ner · Addicted!

your source isnt "ad-con" is it todd , cuz in jersey stuff is different

Canadian Poncho · A Poncho Legend!

Yep, it was the Ad-Con "guru". I heard on the news tonight there is going to be some announcement from GM tomorrow morning. No word on it being a merger, but more likely talk of further cuts. I also was reading today that GMAC is refusing to finance everyone except those with top credit scores in the U.S. Dealers are screaming if this keeps up they'll be out of business. There is speculation that Cerberus (who owns 51% of GMAC )is pulling this move to bully GM into a merger.

4SPEED427 · A Poncho Legend!

I'm sure I'm not the only one with "where will this finally end" in his head.

eeluddy · Uber Guru

A friend of mine said a large GM retail operator closed 30+ stores down last month. That can't be good for anyone.

67BBSD · Canadian Poncho Superstar!

terrible

65sssd · Poncho Master!

Why do think you can buy original GM parts for less than retail. I could buy a glow plug control module on the net for my duramax for 60.00 U.S. GM pricing was 102.00 U.S and locally I was quoted 389.00 Canadian. The dealers creditors auction off the dealers assets. The deal comes before the storm. Everything is cheap before the collapse. Thank god a tune up for a beaumont runs about 150.00 in parts and I can do it in my sleep. P.S Pretty sad that I can buy everything under the hood for not much more than one module. hmm

Astro Jet · Poncho Master!

Here's the only news release so far today and it is not good. If I had plunked down a deposit on a new Camaro, I'd be starting to feel a little uneasy now.

GM posts 5th straight quarterly loss, says it may run out of cash by mid-2009

Jamie LaReau
Automotive News
November 7, 2008 - 11:07 am ET

DETROIT -- General Motors today reported its fifth straight quarterly loss because of "unprecedented economic and credit market turmoil'' and warned that it may not have enough cash to operate by mid-2009.

GM ended the third quarter with $16.2 billion in cash on hand, down from $21 billion on June 30.

GM's reported net loss in the quarter was $2.5 billion, including several one-time gains and charges. Before those special items, the company reported an adjusted loss of $4.2 billion. Revenue fell $5.8 billion, to $37.9 billion.

GM said it has identified ways to boost liquidity by an additional $5 billion by the end of next year, on top of $15 billion announced in July.

"Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business," the company said in a statement.

"Looking into the first two quarters of 2009, even with its planned actions, the company's estimated liquidity will fall significantly short of that."

GM stock, as of 12:15 p.m. EST, had fallen 50 cents, or 10.4 percent, to $4.30 a share.

Growing automotive crisis

The results compound the troubles of the Detroit 3, which are petitioning Washington for low-interest loans to survive plunging sales, a worldwide credit crisis and a weakening U.S. economy.

Ford Motor Co. today posted a $3.0 billion aftertax operating loss for the third quarter and told of further plans to cut costs and preserve cash as it braces for the global automotive downturn to worsen in 2009.

GM, which hasn't posted a profit since 2004, is coping with the weakest market for U.S. sales since 1991. Demand industrywide fell to its lowest levels in 25 years in October as GM reported a 45.1percent decline in sales. The automaker's U.S. sales are down 20.4 percent through October compared with a year earlier.

GM executives also are slashing capital spending plans for 2009 and 2010, people familiar with the plan told Automotive News this month. The cuts mean delays for nearly all of GM's product launches, including key vehicles such as the new Chevrolet Cruze sedan and the re-engineered Chevrolet Malibu sedan.

The Cruze was set to launch in the summer of 2010 but may now be pushed back six months to a year. The restyled Malibu was due as a 2012 model; it now is tentatively pushed back a year.

The sources say GM has preserved the intended launch date of November 2010 for its Chevrolet Volt electric hybrid.

Astro Jet · Poncho Master!

Hot off the press:

GM says Chrysler acquisition talks are off

Bradford Wernle
Automotive News
November 7, 2008 - 12:19 pm ET

DETROIT -- General Motors is calling off talks with Cerberus Capital Management LP about a possible acquisition of Chrysler LLC.

GM CEO Rick Wagoner, without naming Chrysler specifically, confirmed the end of the negotiations during a conference call with journalists today.

"We have recently explored the possibility of such an acquisition based on the analysis that it would strengthen our industry position in the long term," Wagoner said.

"We've concluded at this particular time that we are better off to put 100 percent of our efforts on the liquidity side. We've set aside such (acquisition) actions as a near term priority."

Chrysler spokesperson Shawn Morgan confirmed Chrysler was aware of the GM statement but declined further comment on the talks.

Chrysler issued its own statement saying it would continue to work on returning Chrysler to profitability.

"As an independent company we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid our return to profitability."

NOTE FROM CHRYSLER CEO BOB NARDELLI TO EMPLOYEES:

Today GM released their third quarter results which included the following statement, I wanted to share with you:

"In addition, we have recently explored the possibility of a strategic acquisition that we believed would generate significant cost reduction synergies and substantially strengthen our financial position in the medium and long term, while being neutral or modestly positive to cash flow even in the near term. While the acquisition could potentially have provided significant benefits, we have concluded that it is more important at the present time to focus on our immediate liquidity challenges, and, accordingly, we have set aside consideration of such a transaction as a near-term priority. We frequently discuss matters of mutual interest with other auto manufacturers and, as a matter of policy, we generally do not comment on these private discussions, which in many cases, do not lead anywhere."

As we have previously stated, Chrysler LLC neither confirms nor discloses the nature of its private business meetings, as many times they do not come to fruition.

Returning Chrysler to profitability continues to be the key focus of the management team. We are significantly challenged by today's economic environment and by the automotive industry's unprecedented downturn. As an independent Company, we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid in our return to profitability.

As we've shared, we appreciated the opportunity to meet with Speaker Pelosi and her leadership team, as well as with Senate Majority Leader Reid to discuss the challenges facing the industry. We are encouraged by their understanding of the importance of the automotive industry to the economy and we look forward to working with them on these issues. We would also like to acknowledge that UAW President Ron Gettelfinger was present at these meetings and added his support.

Sincerely,

Bob

RDubya · Poncho Master!

and to go along with GM news for southern Ontario...

CAMI-TROUBLES
TOR OUT YYY
INDEX:AUTOMOTIVE, BUSINESS, LABOUR
CAMI AUTOMOTIVE INC. CONFIRMS IT WILL CUT ONE OF TWO SHIFTS, SLASH OUTPUT: REPORT

TORONTO - CAMI AUTOMOTIVE INC. WILL REPORTEDLY SLASH OUTPUT BY MORE THAN HALF AT ITS ASSEMBLY OPERATIONS IN INGERSOLL, ONT., FOR THE FIRST FOUR MONTHS OF 2009.
THE COMPANY WILL ALSO LAY OFF THE EQUIVALENT OF ABOUT 500 WORKERS BECAUSE OF FALLING DEMAND FOR ITS SPORTS UTILITY VEHICLES.
THE MOVES WERE EXPECTED AFTER CAMI TOLD ITS WORKERS EARLIER THIS WEEK IT WOULD SOON HALT OUTPUT OF ONE MODEL, THE SUZUKI XL7.
THE TORONTO STAR SAYS CAMI WILL IDLE THE PLANT ENTIRELY FOR THE FIRST TWO WEEKS OF JANUARY, THEN ELIMINATE ONE OF TWO SHIFTS FROM JAN. 18 TO APRIL.
CAMI CURRENTLY EMPLOYS SOME 1,500 WORKERS TO BUILD THREE MODELS AND DID NOT INDICATE WHEN PRODUCTION OF THE SUZUKI XL7 MIGHT RESUME.
THE JOINT VENTURE BETWEEN GM CANADA AND SUZUKI PLANS TO START BUILDING A REDESIGNED CHEVROLET EQUINOX IN MAY AND A REPLACEMENT FOR THE PONTIAC TORRENT IN AUGUST.
(THE CANADIAN PRESS)

also news from the blue oval cult

FORD
INDEX:AUTOMOTIVE, BUSINESS, INTERNATIONAL, MANUFACTURING, ECONOMY
FORD ANNOUNCES $129-MILLION Q3 LOSS, BURNS THROUGH $7.7B IN CASH

DEARBORN, MICH. - FORD MOTOR CO. SAYS IT LOST $129 MILLION IN THE THIRD QUARTER AS THE STRUGGLING AUTOMAKER BURNED UP $7.7 BILLION IN CASH.
THE AUTOMAKER ALSO SAID FRIDAY IT WILL CUT ANOTHER 10 PER CENT OF ITS NORTH AMERICAN SALARIED WORKFORCE COSTS AS IT TRIES TO WEATHER THE WORST ECONOMIC DOWNTURN IN DECADES.
FORD SAYS IT LOST SIX CENTS PER SHARE FOR THE QUARTER, COMPARED WITH A YEAR-AGO LOSS OF $380 MILLION, OR 19 CENTS PER SHARE.
THE COMPANY POSTED A PRETAX LOSS OF $2.7 BILLION FROM CONTINUING OPERATIONS. BUT IT WAS OFFSET PARTLY BY A $2-BILLION GAIN AS THE COMPANY SHIFTED RETIREE HEALTH CARE LIABILITIES TO A TRUST RUN BY THE UNITED AUTO WORKERS.
SALES FELL 22 PER CENT TO $32.1 BILLION FROM $41.1 BILLION DUE TO LOWER VOLUME AND THE SALE OF JAGUAR AND LAND ROVER.
EXCLUDING SPECIAL ITEMS, FORD LOST $1.31 PER SHARE, WORSE THAN WALL STREET EXPECTED. ANALYSTS SURVEYED BY THOMSON REUTERS PREDICTED A LOSS OF 94 CENTS PER SHARE ON SALES OF $28 BILLION.
(THE ASSOCIATED PRESS)

65sssd · Poncho Master!

I wonder how the classic car after market parts will do with American economy bombing. Is this stuff all manufactured in the states and china? Will these parts become harder to get and expensive? confused

Fat Dave · Member

65sssd wrote:

I wonder how the classic car after market parts will do with American economy bombing. Is this stuff all manufactured in the states and china? Will these parts become harder to get and expensive?

I was thinking the same... but newer vehicles are more disposable than ever before and they have a shelf-life of about 10 years on average, which means that a lot of vehicles will be done-for by the time they're completely paid-off.

So I'm not sure replacement parts will be as much of an issue as they have been in the past.

... and for a couple thousand bucks you can have something cool than runs, drives, and is no big deal to fix up & work on, and was built to last, and you're not making payments on.

... and you KNOW it was built to last because it's already been running for somewhere between 30 & 50 years.

I understand the appeal of new vehicles, but the logic is a bit of a stretch...

73SC · A Poncho Legend!

I was actually thinking today that I am part of the problem. True I own 5 GM cars now and I have never owned any other make but it was 9 years ago that I bought a new car, a GMC Suburban SLT which cost us $65,000 on the road. I swore I'd never buy another new car after that and I told my wife who had to have it that it was her's for the next 15 years.

In many respects GM has made a problem for themselves. Their products ar too good and reliable, I have a 35 year old Pontiac that is more reliable and mechanically sound than most of the people's 04 econo boxes in my office, next oldest is a 16 year old RWD Cadillac, my favourite, then a 15 year old Buick, a 10 year old Cadillac and a 9 Year old GMC. How many people have even 7 year old Japanese econboxes??? BUT they keep going back to get a new one.

67BBSD · Canadian Poncho Superstar!

73SC wrote: I re

I was actually thinking today that I am part of the problem. True I own 5 GM cars now and I have never owned any other make but it was 9 years ago that I bought a new car, a GMC Suburban SLT which cost us $65,000 on the road. I swore I'd never buy another new car after that and I told my wife who had to have it that it was her's for the next 15 years.

In many respects GM has made a problem for themselves. Their products ar too good and reliable, I have a 35 year old Pontiac that is more reliable and mechanically sound than most of the people's 04 econo boxes in my office, next oldest is a 16 year old RWD Cadillac, my favourite, then a 15 year old Buick, a 10 year old Cadillac and a 9 Year old GMC. How many people have even 7 year old Japanese econboxes??? BUT they keep going back to get a new one.

I really like this statement-thank you-thank you-check out the thread "truth about cars"

-- Edited by 67BBSD at 17:55, 2008-11-08