General Motors announced its first financial numbers since emerging from bankruptcy. And what do you, it lost money. No surprised there, it's not going to be a quick turnaround no matter how much cash the government forks over.
Still, there was some good news in today's numbers. CEO Fritz Henderson says the company should be in a position to start paying back its government loans starting next month. He expects that GM will be able to repay the entire loan much earlier than the 2015 deadline. GM also noted strong sales of its latest models and much lower operating costs than before.
AutoObsever: GM Will Make First Government Payments in December
rallyandbosox says:
06:02 PM, 11/16/09
So they'll pay their loans off early but continue making losses...so by the time their existing loan has been completely paid off, they'll have to take another loan from the Federal Government.
inlinesix says:
06:18 PM, 11/16/09
I hope they can reach even more buyers and do well from here on out. They often have a price advantage so this is the time to push cars.
Their lame marketing gimmicks could end though.
inlinesix says:
06:29 PM, 11/16/09
rally:
I assume they will (with cost-cutting and increased product sales) produce net gains. Parts of the company have been sold off and they have some good selling models. Streamlining and focusing the business should work for them if they can produce cars people want to buy. Also, China is a big buyer for GM and China is growing socioeconomically. They have opportunities to operate profitably.
rallyandbosox says:
07:10 PM, 11/16/09
inline:
I know, and I hope they do operate at an efficient level, but I'll wait to see the numbers before my skepticism goes.
kgrgunman says:
12:46 AM, 11/17/09
so the US government gives GM a total of $52B but GM only acknowledge $6.7B in government debt.
so with a loss to the tax payers of only $45.3B they can pat them selfs on the back and say the tax payers are paid back in full, great.
this is a car company i want to buy from, think i can buy a $52,000 caddy and pay them $6,700 and then tell them i'm paid in full?
inlinesix says:
11:00 AM, 11/17/09
I'll take 1 new Corvette for $7,000.