General Motors makes biggest drop on market

Such a big surprise!

A major motor company fails to innovate like other foreign companies have and ends up losing out. Start building some electric cars and maybe we’ll care. Clowns.

GM down on one knee...
:eek:
GM may cut thousands more jobs
July 14, 2008: In an announcement Tuesday, the ailing U.S. automaker is expected to cut production and jobs due to falling domestic sales.

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General Motors Corp. is expected to cut several thousand salaried jobs and further slash truck production in response to falling U.S. sales and Wall Street’s demands for more action to stem its losses, according to people briefed on the plan. GM Chairman and CEO Rick Wagoner is scheduled to discuss the changes at a news conference Tuesday morning. GM released no further details, but salaried job cuts and cuts to benefits and executive compensation are likely.

The people briefed on the plan say GM will further reduce its truck production to focus more on small cars, and also will likely detail plans to raise more cash to fund its restructuring. The people requested anonymity because the plan was not yet public.

GM has been hammered by high gas prices, the weak economy and a rapid shift in consumer tastes away from trucks and sport utility vehicles. The automaker’s sales were down 16% in the first six months of this year, while its stock price has hit 50-year lows in recent weeks. GM announced last month it would close four truck and SUV plants and boost production of several cars. But analysts have suggested the company needs to do more as sales continue to slide, including cutting more jobs and raising cash for a turnaround.

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I don’t think there is any thing wrong with motor companies.And all things depends upon budget of companies.

GM cuttin' production...
:eek:
GM slashes another 117,000 vehicles
July 28, 2008: Latest production cuts bring General Motors' total reductions to just below the 300,000 units officials had hoped for this year.

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General Motors Corp. said Monday it will cut production by another 117,000 vehicles, citing continued weakness in consumer demand for pickup trucks and sport utility vehicles. GM spokesman Tony Sapienza said the Detroit-based automaker will achieve the cuts by eliminating one shift each at its Moraine, Ohio, and Shreveport, La., plants. Most of the cuts will affect production of trucks and sport utility vehicles. The Moraine plant makes the Chevrolet TrailBlazer, GMC Envoy, Buick Ranier, Isuzu Ascender, Saab 9-7x midsize SUVs, while the Shreveport plant currently produces the GMC Canyon, Chevrolet Colorado and Hummer H3.

The cuts bring GM’s total production cuts to just under the 300,000 units company officials had hoped to cut this year, Sapienza said. GM also is looking at the possibility of idling production at other truck and SUV plants later this year to further align its offerings with consumer demand, he said. Record-high gas prices and a weak overall economy have led to a steep drop in U.S. sales of trucks and SUVs this year, as consumers have opted for small, more fuel-efficient passenger cars or put off buying new vehicles all together. GM’s U.S. sales were down about 16% for the first half of this year, largely as a result of a plunge in truck sales, and it’s not the only automaker facing lower demand.

Japanese rival Toyota Motor Corp., which outsold GM by 277,532 vehicles worldwide in the first six months of this year, cut its global sales forecast earlier Monday by 350,000 vehicles to 9.5 million, blaming sluggish North American sales. Toyota also is shifting production from SUVs and trucks to smaller models. It said earlier this month that it plans to shut down truck and SUV production at its U.S. plants for three months starting in August, and it will start building the Prius hybrid in the U.S. for the first time in 2010. GM shares fell 42 cents, or 3.5%, to $11.48 in midday trading.

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What’s bad for GM is bad for America...
:eek:
GM posts $15.5 billion loss
August 1, 2008: Even excluding charges, automaker loses far more than expected as vehicle sales tumble.

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General Motors reported a huge second-quarter net loss Friday of $15.5 billion after restructuring and other charges. The automaker lost $27.33 per share in the quarter, compared to a profit of $784 million, or $1.37 per share, a year ago. Even factoring out those charges, GM posted a stunning $6.3 billion loss on operations. That works out to $11.21 per share, far above the $2.62-a-share loss projected by Thomson Reuters.

Last year, the company earned $1.3 billion on that basis, or $2.29 per share, as it attempted to turn around years of losses. GM stock fell 7.5% in pre-market trading. The automaker posted revenue of $37.7 billion from auto operations, down from $45.8 billion a year ago. Analysts polled by Thomson Reuters were expecting revenue of $44.6 billion.

The lost revenue was likely due to a significant decline in vehicle sales. GM sold nearly 5% fewer vehicles this quarter than it did over the same time last year. U.S. sales took the biggest hit, falling 21%, although foreign sales rose 7%. In a press release, GM said its results were impacted by $9.1 billion of predominantly non-cash special items.

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Wall Street spooked by GM loss
August 1, 2008: Futures turn lower after automaker books $15.5 billion loss. Investors await July jobs report.

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U.S. stock futures plunged into the red Friday following a whopping loss by automaker General Motors, while investors braced for the government’s monthly reading on employment. Less than two hours before the open, Nasdaq and S&P futures were narrowly lower, pointing to a negative open..

Further reaction was expected after the Labor Department released its July jobs report at 8:30 a.m. ET. GM: Sending futures lower was a hefty second-quarter net loss of $15.5 billion, or $27.33 per share, for GM. However the automaker said the loss was affected by $9.1 billion of predominantly non-cash special items.

GM shares fell nearly 9% in premarket trading on the news. GM, Ford and other automakers were also on tap to report their U.S. sales for July. Auto sales tracker Edmunds.com predicted a 3.3% drop in auto sales compared to a year ago.

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