GM Posts Biggest Annual US Auto Loss

[RangerBob]

General Motors Corp. reported a $38.7 billion loss for 2007 on Tuesday, the largest annual loss ever for an automotive company

Link

I wonder if GM management will cut back production of future models?

[Joe 1320]

Bob,

I think it's part of the cycle. For years, they continued to churn out high volume SUVs and lease vehicles. The market is so saturated with good quality used vehicles combined with a slowdown of the consumer's spending, it makes sense aspecially considering the considerable costs of R&D with new models combined with the slowdown of new sales. I think it will take two years to get into the clear again.

[Rhode Island Red]

combine it with GM to offer buyout of 74,000 hourly employees in the USA - That's virtually their entire US workforce

[Wild Willy]

Let me start by saying that I am a GM fan, for over 4 decades, as was my father and uncle before me- GM has built some wonderful, world-class cars over the years- They used to make the auto transmissions that went into Rolls Royces. Cadillacs, the Oldsmobile V-8, Buick GS's and Grand National, the list goes on and on-

The upper management needs to get their collective head out of there posterior. They no longer are the 800 lb gorilla, able to call all the shots in the market place. They need to build affordable economical cars, by the millions, that everybody won't be embarassed to be seen in. For every bloated Escalade or Denali with satellite radio, GPS, heated leather seats and dubs, they should be selling 100 or 200 Malibus or Impalas, or some other family grocery getter, with a great warranty, good gas mileage, and enough money left over for the payments for the owner to dream about a performance exhaust or a set of wheels. They need to build a car that is better than an Accord or a Camary, at a price that is equal to or less than the coveted Japanese brand, or you will never get the younger generation out of the cars they have grown up believing were the standard-bearers.

If they don't figure this out, they are going to go the way of American Motors, or Studebaker, or so many other American companies that lost relevance and market until they folded up their tents. Sounds harsh, and I am rooting for them, but I don't see any significant changes. The 5th gen Camaro is like bringing a knife to a gun fight- years too late, after gas has hit $3 a gal- The Silverado is a real nice truck- try and buy a stripped down model, say, with vinyl floor mats and seats, and manual windows that you might actually use to work in, for a reasonable price- good luck with that.

There has always been a market for nice, well-built starter cars, you know, beneath what the General would consider. Anybody remember the first Honda 600's, or the Accord hatchback? Early Subaru's? (Look at them now!) Hyundai has shown them the business model one more time, but GM would rather die than adapt, apparently- too bad-

[Blazer]

Like I have been saying an hate to see it but GM is going down the tubes. A day late an a dollar short.The new Mustang has a big jump you see them everywhere. Well maybe the new 4 door Camaro with a big V6 [ if it ever comes out ] will save them.
Blazer

[Gary94Formula]

Unfortunately I think there is some truth in what Blazer is saying... GM has to make cars better and more affordable. (No pun intended)...

I saw a brand new pretty loaded Mustang GT in the paper last weekend for $23K after discounts. I'm sure the new Camaro Z28 will be in the $32-$35K range...

I saw a statement that said that the Camaro will be a better car, but it won't compete sales wise with the Mustang as people want bang for the buck...

[Steel2686]

I was a GM fan my entire life (as most here are). The Acura TL is the first non-GM I've ever owned. I have to tell you... It opened my eyes to things I was blind to. Build quality for one. Everything from spacing in body panels to interior materials.

That's not to say GM is garbage. Far from it. Just a bit behind on smaller things. One example is LED tailights. Euro and Japanese automakers have welcomed the technology with open arms. The bulbs don't burn out (at least not for a very long time), and they tend to be brighter. GM puts them on only the most expensive cars, and very few of them. Within the next three to four years, standard automotive bulbs are being phased out. Why not jump in now?

The good news for GM is they are building cars like the new Malibu. That car was praised by several reviewers as being a strong competitor with the new Accord, and better than the Camry. If GM keeps going along those lines, they'll be fine... And I'll definitely be back (Can't wait to see the new G8 in person).

[Rhode Island Red]

DETROIT, Feb. 12 (UPI) -- Detroit has topped Forbes' inaugural list of America's Most Miserable Cities, which cited the Motor City's high rates of violent crime and unemployment.

The list analyzed the 150 largest U.S. cities in terms of unemployment, personal tax rates, commute times, weather, crime and toxic waste dumping, Forbes.com reported Tuesday...Forbes said Detroit was chosen as the list topper in part because of its high rate of violent crime -- 1,251 crimes per 100,000 residents annually -- and its 8.5% unemployment rate during the past three years.

Hope GM does better in the near future as it would seem as if they don't turn things around there will be a higher than 8.5% unemployment

[Jeff_in_Atl]

I'm surprised that no one has commented on how the union has played a big part in the demise of the American auto industry. The union drove Eastern airlines out of business. It was well on the way to do the same at GM. I guess it figured it was better to get something than nothing like the people of Eastern got.

The 2 big reasons jobs are being exported over seas are the union and the oppressive tax system we have. Get rid of unions and adopt the Fair Tax.

[TraceZ]

I'm surprised that no one has commented on how the union has played a big part in the demise of the American auto industry. The union drove Eastern airlines out of business. It was well on the way to do the same at GM. I guess it figured it was better to get something than nothing like the people of Eastern got.

The 2 big reasons jobs are being exported over seas are the union and the oppressive tax system we have. Get rid of unions and adopt the Fair Tax.

I agree.

The time for unions has passed. The conditions that existed 50 years ago in the labor market are no longer. We dont have sweatshops or reclesssly dangerous work environments. The government has stepped in and made laws governing safety in the work place and fair wages.

I'd love to see what an employer paid out in wages be figured into the rate they are taxed at. Give them incentive to employ more people at higher wages.

I'd also love to see all the illegals deported. More jobs for legal citizens.

[markd79ta]

GM will need to collapse the divisions into one central company and focus on one or two vehicles in each market segment with a huge commitment to fuel efficiency and their entry/mid level. Their bloated empire is at an end along with their dinosaur business model...they focus more on dessert cars like Cadillacs, luxury SUVs, and such then they do on meat and potatoes cars that most 1st time new buyers can afford. Anyhow, they can still badge their cars with the old model/make if they wish on some cars. Most of their car's names should be dropped in favor of new ones unless there is some historic significance like the Chevrolet Corvette, Camaro or Pontiac Trans Am, etc. GM, Ford, and Chrysler all need a new image. They simply don't appeal to the new generation of consumers after loosing so much of their edge in the 80s and 90s. Their entry level products need to be solid in order to build a new consumer base. They're not going to win over a consumer by building a fancy Escalade on a pedestal while the car the consumer buys is built like crap. Nobody wants to spend 18-22k on a car that should be in the Budget rental car parking lot.

Furthermore, the era of AFVs is here and will be our reality by 2020; they need to make the Chevy Volt happen and push the diesel and/or electric in their SUVs & light trucks. Maybe they can actually be ahead of the game instead of horribly behind. Even I want an electric vehicle now that my family pays $700 a month in gas...it is absolutely ridiculous that I can't buy a vehicle that goes in the snow with five people and our stuff for anything more then 16mpg. My next vehicle I buy new will be an AFV. I bought the Yukon used because it was cheap and met an immediate need...there is no way I would even consider buying one new. When I bought new in '06, the best I could find was my Liberty CRD...pre-family so it can't accommodate the family all together; I bought the CRD because the diesel 4x4 averages 25mpg. GM lost that sale from me, and will lose the next one if I can get what I need from them. If I didn't live in the mountains with all the snow, I would drive an imported four-banger because of the fuel costs.

With regard to the union. If they don't grasp that the company needs to be viable to employ them, then they will end up with nothing. It happens time and again...seems as though they would learn their lesson with all the jobs being imported overseas and the factories closing their doors over the past 40 years. GM will be 1/3 the size it is now if they survive; the union better just deal with it.

[Steel2686]

I'm surprised that no one has commented on how the union has played a big part in the demise of the American auto industry. The union drove Eastern airlines out of business. It was well on the way to do the same at GM. I guess it figured it was better to get something than nothing like the people of Eastern got.

The 2 big reasons jobs are being exported over seas are the union and the oppressive tax system we have. Get rid of unions and adopt the Fair Tax.

Absolutely, Jeff. A great point that was overlooked.

The UAW has all but killed the industry, which is ironic considering they are there to protect American jobs. That is the very reason my wife's last GM (Chevy HHR) was built in Mexico, and my last two GM's were built in Canada.