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GM post $3.25 billion overall loss for Q1 2008; Slight operating profit

04/30/2008, 9:35 AM

By Nick Aziz

General Motors has been praised recently for an improving product line, but so far the company is still struggling to get out of the red. The automaker today reported a net loss of $3.25 billion for the first quarter of 2008.

GM absorbed a $731 million non-cash charge to support Delphi’s bankruptcy restructuring. An even larger portion of GM’s loss relates to its unstable GMAC financial division. The company took a $1.45 billion impairment charge (akin to a write-off) for its 49 percent share of GMAC.

In terms of ongoing operations — money made or lost on the GM’s actual car sales business — the company reported a loss for North America of $812 million on revenue of $24.5 billion. This figure compares to a $208 million loss of revenue of $28.1 billion one year earlier (Q1 2007). Luckily, GM posted a profit of $1 billion for the European and Asian markets — resulting in an overall operating profit of $188 million.

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04/30, 10:05 AM

posted by:

tripleonefive

Oh poor GM. The Malibu is selling in droves The Lambda’s are selling like hotcakes and not the chocolate chip ones the regular ones
Why the loss GM???? lol
GM sucks

04/30, 10:15 AM

posted by:

mayer_ray_nagin

Simple. Fewer (high profit) trucks = less revenue and a hit to profit.

04/30, 10:21 AM

posted by:

HoosierHero

This makes Ford look golden lol.

04/30, 10:22 AM

posted by:

HemiRoadRunner

It doesn’t matter, when GM comes out with the new Camaro and Volt, they will have a diverse enough line-up to satisfy everyone from Musclcar enthusiasts to environmental hippies. See if toyota can do that.

04/30, 10:24 AM

posted by:

Z06ified

GM stock is up 10% on the news. It pays to study the numbers and learn what they all mean.

04/30, 10:26 AM

posted by:

Commodore

lol 1115, the article explains it to you. Because of the Delphi bankrupcy and GMAC losses.

04/30, 10:38 AM

posted by:

Bubs Solo

The last sentence sums it up “overall operating profit of $188 million” very simular to what Ford posted…I think.

04/30, 10:40 AM

posted by:

Bubs Solo

1115 it pays to read the whole bloodly acticle… stop spinning everything.

04/30, 10:51 AM

posted by:

xyunya

HemiRetardRunner, recovered from capacitor shock, I see. How the muscle cars that planned to be produced in tens of thousands will help when Malibus which sella in hundreds of thousands cant? The price per car isn’t that different. Furthermore, muscle cars most likely will DOA due the gas prices. By the time Camaro hits the street the price at the pump will be 5 bucks. Volt might give nut cancer – we even don’t know how far the hype with EMF will go, that may ruin the whole hybrid segment.

04/30, 11:02 AM

posted by:

400horseSS

The 9th quarter in a row without profit but raise execs pay and try to cut ours in half…………makes sense to me.

04/30, 11:17 AM

posted by:

xyunya

Execs got raises because they did have overall profit. Since UAW works for US part of the company that looses money, they get cuts.

04/30, 11:33 AM

posted by:

johnnycanuck

As Z06 noted, GM stock is up on the results. That’s good enough for me.

04/30, 11:37 AM

posted by:

jimmy8

I honestly hope GM can get their stuff together like Ford has, but lets be real people, the VOLT will not sell. Sure at the start there will be some celebs lined up to get one, but there just isn’t market for $40,000 compact car regardless of mileage. I’ll take a $16,000 Focus w/ SYNC that gets 35 mpg and spend the remaining $24,000 on gas. $24,000 will buy me a lot of gas at 35 mpg!

04/30, 11:45 AM

posted by:

FordTaurusForever

HemiRoadRunner the new Camaro was killed by the Mustang before and it still gets killed by the Mustang again is sales and revenue when its introduced, because why Ford invented the segment of Pony cars and its and its of much higher quality.

Ford beat out even Toyota “The Gold Standard” in Quality. And Chevrolet is still trying to play catch up in that “Quality” department.So, Plus if you factor in that their are new kids on the block in the sports car arena and have been though for awhile such as the Subaru WRX and the Mitso Evo. And were not counting the Germans, and Koreans- Hyundai, and the rest of the auto manufacturers.

As far as the Volt is concerned. I would much rather go with a Honda’s new Hybrid or electric that will replace the Insight which to me alone is superior to anything the Chevy rusty-bolt could be or even look like. oh yeah I will be taking a look at BMW’s and Toyota’s and will see if Ford is smart enough to have an All Electric Verve or Focus when its World car debuts in 2011- it should if Mulally can get it a version in that direction. That should be good if Ford can pull that off.

Also, I agree 100% with xyunya on the non purchasing of Musclcars if Gas rises to $5 which by all accounts it will not only get there its going to do nothing except go much higher! Get use to it HemiRoadrunner. As for attracting environmental hippies to GM I doubt it. If one see that an automaker talks out of both sides of its mouth aka tries in general to conquer every market segment and look green. I tell you this it can’t be done without losing face!

True environmentalist are intelligent people that read and know that GM has earth mover sized SUV’s, Hummers, and Trucks that its choking on right as we speak- why they are the New GAS GUZZLERS. And no toyota does not want to do that.
Meaning have a philosophy of Gas Guzzling Vehicles it makes on one end and environmentally friendly vehicles on the other.

They have stated they will spreadEnvironmentally Green vehicle technology throughout its line up that includes its Lexus Luxury car division. Is GM doing that. No GM Makes Oil and Gas Refinery Plant eating Caddies on one end at 550 HP and tries to make up for its poor MPG by offering the middle class a cheap car that gets higher mileage. So what GM is basically saying is that the Rich can not only be wasteful because they have money, but the poor can get a car that sips gas. Now what does that say about GM. Hmmmm They’re Stupid. And if you believe the BS well you get what you pay. But most people will see right through the smoke and mirrors crap GM puts on and go to Toyota or Ford with better fuel economy for all vehicles not just a couple and then everyone else can waste as much gas as possible. What HYPOCRITES! That’s GM for YA. Thank you I rest my case.

04/30, 12:22 PM

posted by:

inline6

Wow Jimmy8, perhaps you’ve never heard of cars like the BMW 3-Series, Audi A4, and Mercedes-Benz C-Class. Those are all compacts that run $40k, plus.

I’m sure that when the Volt hits the streets, its advertized 133mpg will be enough for people to buy one, especially if gas it at $5 a gallon.

People, for years, spent $40k on gussied-up pickups-without-beds (SUVs) that had zero refinement, lousy quality, and drove like ox-carts.

They’ll spend $40k on the Volt, too.

04/30, 12:27 PM

posted by:

F451

This is great news..now, the executives can further up their pay and perks!

04/30, 12:34 PM

posted by:

HemiRoadRunner

So many people on here like ford taurus over analyze EVERYTHING. I don’t care what you would rather buy. Not everyone can have a boring @$$ line-up like toyota and honda. At least GM and Chrysler are diversifying their line-ups to give the buyer all sorts of options. I want a Challenger or Camaro because it’s fast and looks cool, not because it gets good MPG. I don’t drive an eternity to get everywhere I go, so 20 mpg is fine by me. If I want an electric car, I’ll get one in addition to the new Challenger R/T, or even a high mpg commuter car.

04/30, 12:36 PM

posted by:

inline6

Oh, and FordTaurusForever,

GM’s SUVs and trucks get better mileage than Toyota’s, and that’s not to mention the fact that two-mode hybird versions are available. In fact, all of Toyota’s latest-generation SUVs, pikcups, and crossovers (which they’re putting out in droves) get POORER mileage than their predecessors.

The Tahoe hybrid gets the same city fuel economy as the Toyota Camry. The 3.9 V6 Impala gets only 2mpg less than the 4cyl Camry. The changes GM’s made to the Cobalt recently make it more fuel efficient than the Corolla.

The company sells 3 of the least expensive hybrids you can buy, all of which get very close to the mileage of full hybrid cars like the Camry hybrid and Escape hybrid.

They’ve taken leadership on E85, spent billions on helping companies make it from something other than corn, have taken the lead, along with Honda on hydrogen fuel cell research, have move vehicles like the Volt and Flextreme to priority #1, and their newest manufacturing plants are racking up the eco-friendly awards.

And it’s not like Ford doesn’t build massive SUVs (Expedition EL?, Range Rover Supercharged). Of course, they’re also still marketing the 3 oldest vehicles in the industry: Econoline (1975), Crown Vic/Grand Marquis/Town Car (1979), and Ranger (1983).

04/30, 12:39 PM

posted by:

400horseSS

Up $2.86 WTF.

04/30, 1:30 PM

posted by:

planet_drive

such a big loss is no surprise. Domestic auto makers don’t know how to build quality competitive products, they don’t know how to run their factories effeciently like the Asians and Europeans do. More and more people are buying imported vehicles while domestic auto makers are still heavily dependant on the foolish patriotism of small town losers to continue buying their cars. And small town losers don’t know what quality means, as long as its american, they will buy it lol

04/30, 1:36 PM

posted by:

400horseSS

^But they’re on the way to effeciency, especially GM and the quality has always been there.

04/30, 1:43 PM

posted by:

xyunya

Because quality was not here for 30 years, GM is catching up with Asian companies. The most reliable GM car is Vibe which is a copy of Toyota Corolla/Matrix. That is why UAW get cuts instead of raises, because they can’t work efficiently and produce quality. They are very good at whining however, especially on this site.

04/30, 2:15 PM

posted by:

planet_drive

The key factor here is that Domestic automakers are trying to catch up and match import cars. Not the other way around. The Japanese are relatively new to the car making game when compared to European and North American auto makers. And today Japanese cars are the quality standard for the world. Even European makers are trying hard to match the quality, but European cars got something American cars unfortunately will never have, prestige. So you can hate jap cars all you want, the fact is all over the world if you ask someone who builds better cars, US or Japan, everyone will say Japan. Its a fact, live with it, and do your best to match Japanese quality, if your able to.

04/30, 4:12 PM

posted by:

AMGoff

^^Ohh… it looks like 1115 has a new little retard friend on here. I’m sure you also like to deny any report or study which contradicts your claims.

Anyway… as far as anyone else, tripleonedouche especially… if you find it too hard to actually read an entire article, keep your ****ing mouth shut before commenting. It’s pretty bad when they actually write an explanation in the article and they still get all giddy…

04/30, 10:47 PM

posted by:

shitalker

wait, what?? gm is doing bad? wow, what a surprise!!! you think companies like ford and gm have dumb accounts?? they’re just playing with numbers cuz they don’t want to show how they’re actually doing (so the media would get all over their ass and make their stock fall like even lower than they’re at) so.. let’s see…. they’re hiding the real numbers by showing a 3.25 billion lost in one quarter, and of course they have to blame it on like gmac and delphi and of course auw lazy uneducated fat ****s (easy target right? why not) so just imagine how bad gm really is… wow, HAHAHAHAHAHAHAAHHAHA… gm you suck!!!!

05/01, 11:56 AM

posted by:

WEKS

“GM stock is up 10% on the news. It pays to study the numbers and learn what they all mean.”
They mean that GM is losing money, the stocks jumped because the loss was less than expected.

 
 
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