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GM's high sales but loss in profits
Monday, July 11, 2005 10:17 AM
General Motors's "Employee Discount for Everyone" program sent the automaker's sales soaring last month to the highest monthly total in two decades, but GM, the world's largest automaker, just posted a first-quarter loss of $1.1 billion compared with a profit of $1.2 billion in the year-ago quarter.






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Re: GM's high sales but loss in profits
Monday, July 11, 2005 11:00 AM
GM needs a plan and they better come it with it quick.

For example how about like they got rid of Oldsmobile, they dump Hummer to. I hardly ever see any Hummers driving around town, yet the Hummer dealer has truck loads of them sitting at the lot collecting lots of dust.
It is obvious that few people can afford the vehicle it self, but secondly with gas prices at $2.70 for premium which it what it takes no one is going to want to buy one.
GM has a few things going for it, new Cobalt, GTO is back, G6. GM needs to get a Hybrid vehicle going to, Toyota and Honda control the market the Honda and Toyotas are the best fuel efficent passanger cars ever created, they are in high demand.

Imagine if GM had the G6 as a Hybrid, a new car with a new look that is really hot right now, but also a Hybrid, they couldnt even keep them in the lots I bet.

Secondly GMs health care plan need to be cut. That cost them $5.2 billion last year and for each vehicle it cost about $1400 more than had there been no health care. I'm not saying cut it totally, but it needs to be cut.








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Re: GM's high sales but loss in profits
Monday, July 11, 2005 11:03 AM
I disagree with dropping Hummer :\ I see at least 15-20 different Hummers on the road daily.. sometimes even more.. and that's just in the 30 minutes to work and 30 minutes from.. but yeah.. they do need to get on the ball real soon :\


Re: GM's high sales but loss in profits
Monday, July 11, 2005 11:30 AM
Actually, from it sounds like pontiac is going to be the next one to go. And hummers are everywhere man. At least here in minnesota. And the increase in sales is still a good thing, taking a loss in money is nothing when you increase your customer base. The profit comes years later when they are ready for a new one.



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Re: GM's high sales but loss in profits
Monday, July 11, 2005 12:48 PM
last i heard buick was really close to the cutting block.




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Re: GM's high sales but loss in profits
Tuesday, July 12, 2005 2:54 AM
Hummers actually make money for GM. Pontiac isn't going anywhere with all the new cars they have coming out.

Buick will be the company to go. Most of their die hard customer base are filling up cemetary's faster than you can blink.

GM needs to cut ties with the UAW after 2007 and then they can start being profitable again. They also need to realize that people like no negotiation car deals and like set prices.
Re: GM's high sales but loss in profits
Wednesday, July 13, 2005 10:59 AM
mrgto wrote:

Hummers actually make money for GM. Pontiac isn't going anywhere with all the new cars they have coming out.

Buick will be the company to go. Most of their die hard customer base are filling up cemetary's faster than you can blink.

GM needs to cut ties with the UAW after 2007 and then they can start being profitable again. They also need to realize that people like no negotiation car deals and like set prices.


I know Hummers make money, if they sell, they dont make money by collecting dust on a dealership parking lot.

GM cutting ties with the UAW, can you say strike, I bet you at least 75% of the employes would go on strike if not more.




- 2004 Cavalier - 124k, owned since new



Re: GM's high sales but loss in profits
Wednesday, July 13, 2005 11:57 AM
Ok yes they posted great numbers, but Quarter 1 of the year is January, February, March. So wait til they post quarter 2 and 3 to evaluate the employee pricing plan.


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