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Joined: Aug 2001
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Originally posted by baco99:
what's changed? the markets have changed, the technology has changed, the competition has changed... hell, everything has changed! just because GM was losing money 20 years ago is a good reason to keep losing money today? wow, that's a very interesting perspective.
the difference is that GM's market share has declined from 25%+ in the 80's to 14.5% today, you can't sustain mounting financial loses when you're also losing more and more of the pie! it's simple economics. the well will run dry unless SIGNIFICANT changes are made.
this ain't time for patching up holes in the system, it's time for a whole new system!
I see what you are saying and I agree it isn't good. And I was never saying it is a good reason to keep losing money or market share.
My point is that there is something else going on there.
Think of this example. Lets say GM sold 1 million cars a year in 1980 and that was considered 25% of the market share then. Now we'll say that GM sells 2 million cars a year in 2005 but that 2mil only represents 15% of the market share.
So every year they show losses in market share, but they are still selling more cars. That isn't necessarily bad, its just that there are more good cars to choose from globally.
I was only pointing out that GM is always posting these kinds of stats because I think they are trying to always get tax write-offs for "loosing business" and thereby helping themselves.
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the tax issue may help them suvert *some* losses year over year, but you can't write off $1.6 billion in losses as a tax benefit. if you consider taxes, then ther losses are even more severe. assume 25% in deferred taxes, then you're looking at $2.1 billion in gross losses. that's extraordinary and not sustainable. at this rate, GM will go bankrupt, and soon.
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Joined: Feb 2003
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Quote:
at this rate, GM will go bankrupt, and soon.
GM has $20B in cash and can raise another $12B by selling GMAC. Even if it continues to hemmorage money, and even if the government does nothing to help, it can go for almost 10 years before running out of money.
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Joined: Jul 2005
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Trust me, if the government bailed out Chrysler, they sure as shootin will bail out GM. There's no way the Gov't would let GM roll over and die.
J.T.
2002 Chevrolet Silverado 294ci V8. Custom CAI, headers on the way...
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Originally posted by MadMerc97:
Trust me, if the government bailed out Chrysler, they sure as shootin will bail out GM. There's no way the Gov't would let GM roll over and die.
just because they get "bailed out" doesn't mean their business practices are sustainable. your comment supports my point. soemthing drastic has to happen. Chrysler's saving grace came in the form of a buy-out by Daimler-Benz.
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Originally posted by MadMerc97:
Trust me, if the government bailed out Chrysler, they sure as shootin will bail out GM. There's no way the Gov't would let GM roll over and die.
I'm not so sure that will happen this time. You do realize that Chrysler was given a loan that they had to repay. They were able to repay it because Lee did a fantastic job doing whatever it took to get the American public to flock to the then throughly modern K-cars and their derivitives.
GM clearly isn't capable of pulling off what Lee did for Chrysler at this point in time or they wouldn't be reporting such hideous losses. The Government won't just give GM money, they will loan it to them. When GM can't pay it back, the Government won't just forgive the loan. At that point the Gov't will be able to sell off GM's assets to repay the loan. The problem with this is, who is going to buy GM's assets?
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J.T.
2002 Chevrolet Silverado 294ci V8. Custom CAI, headers on the way...
1997 Mercury Mystique Zetec ATX
Deceased February 2006
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Joined: Jun 2000
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From the news today Quote:
U.S. automakers' U.S. market share fell to an unprecedented low of 56.9 percent, from 61.7 percent just three years ago, according to Autodata Corp. Asian brands' U.S. market share rose to 36.5 percent, up from 34.6 percent. The total number of vehicles sold in the United States was nearly 17 million, about the same as the year before.
For Sale:
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