GM Reports Q2 Earnings: $1.3 Billion PROFIT

[jrc1122]

Originally Posted by LittleMT

some of us are thrilled that GM atleast posted back to back quarters in the plus... a step in the right direction...

Bolded part, is exactly what I said.

[jrc1122]

Originally Posted by FenwickHockey65

Look at what people drive.

Interesting correlation.

I've owned several GMs

86 Celebrity
98 Malibu
02 Sunfire GT
02 Trans Am WS6
09 Pontiac G8 GT
09 Hummer H3T

I have recently bought two fords

2010 Edge (wife's)
2008 Mustang GT


This isn't some fanboy/ bias, opinion. This is a personal opinion, based off my core beliefs.

I hope GM does extremely well, employees thousands upon thousand of new employees, and makes great cars. I want nothing more than for them to do well. But for right now, I am dissapointed with them, and will not be buying another GM product for awhile, nor will I invest my money in them (if I end up losing out on a great money making opportunity, so be it)

[DGthe3]

Originally Posted by jrc1122

My wife changed her name when she married me, but she is still the same person.

You can change you name, but you can't wash away the past.

no, but thats not even close to what happened. It would be if we were discussing Motors Liquidation Company ... but we're not. We're talking about the company created little more than 1 year ago.

Originally Posted by jrc1122

Not to mention that people in earlier models GMs, still take their car in for service to the "new GM" for warranty work. Why because its virtually the same company.

Few take their car to the company, unless the dealership happens to be owned by the company. Many take them to an independently owned and operated dealership. Others take them to generalized shops who are also certified for warranty work.

Originally Posted by jrc1122

Another example: If you personally go bankrupt, and then decide to change your name legally.. And you go out and apply for credit.. You are still going to get denied.. Just because you changed your name, and went bankrupt, doesn't mean that stuff just goes away.

You are confusing M.L.Co with G.M.Co.

A more accurate comparison would be going bankrupt as a couple, as a result of your spouse. Then you divorce and you more or less keep your name, and your spouse changes theirs. Its not a perfect analogy, but its a lot better.

[Lava]

Actually is much more complicated than any of you understand. Profits were only shown because of GM and Union agreements to OFF SET payments to a later date. Troubling because it will still have to make those payments when the company ever goes public again. Like it or not the Union will put the company in a dangerous predicament again. GM just wants to clear up the companies image first so it can be someone else's problem later. Read on.

General Motors reported a Q1 2010 profit of $865 million, its first profit in three years, today. GM paid back $8.2 billion in from the US and Canadian governments last month. The automaker is still 61% owned by the US Treasury, but expects to buy it out later this year when it goes public again. The New York Times has more:

G.M. has been able to improve its performance even as industry sales remain weak largely because it shed a significant amount of its debt during the six weeks it spent in bankruptcy starting in June 2009.
From July to December, G.M. lost $4.3 billion, mostly because of the cost of settling with the United Automobile Workers union over retiree health benefits, but it had positive cash flow of $1 billion. Prior to bankruptcy, G.M. was rapidly depleting its cash reserves and could have run out of money within months had the government not stepped in.
G.M. said revenue was up 40 percent, to $31.5 billion, and it had positive cash flow of $1 billion.
The results show that G.M. is on track to become a public company again as soon as the fourth quarter, allowing the government to recover more of the billions of dollars it spent preventing G.M.’s collapse.
Business Week has a good overview of GM’s loan repayment
…the majority of the government’s $50 billion investment is tied up in the Treasury’s 61% ownership in the company…GM won’t be able to pay the remaining $40 billion of the government’s investment until the company launches its planned initial public stock offering, which could happen in the fourth quarter. The $8.4 billion was just the debt portion.
The other critical point is that the $50 billion investment in GM was, in retrospect, more than the company needed. The Treasury Department gave GM a big slug of cash in case there was a double dip in the recession or if wary consumers really fled the company’s brands. As the car market got a boost and some of GM’s new models sold well, it was clear that GM didn’t need all of that cash. So GM just paid back the $8.4 billion in debt with government money.
GM, it seems, is once again gaining traction in the public mind. If that happens, GM has a better chance of gaining even more sales–once it goes public again later this year.

[jrc1122]

I'm not confusing anything.. GM, and New GM or what not.. All I know there is no REAL "new" company.. It is the same company, different leadership, less brands, but still the same company.. a 2008 Corvette and a 2010 Corvette didn't change all that much , when the "new" company took over. The Volt has been planned out for years.. The Camaro has been planned out for years. Nothing changed except some legal jargon, and fancy money tricks to keep operating.

Anyone who bought a Buick, Saturn, Pontiac, Saab, GMC, Chevy, Cadillac, Hummer. Were all buying a General Motors car. When they go in for warranty work.. The bill still gets paid by GM, new/ old doesn't matter, it is all the same.

And when you take your car in for WARRANTY, work,, the dealership gets paid from GM.

So a year ago when GM went bankrupt, and the "new GM" came out of it, all the previous actions are still important and relevant to me.

You may think that GM deserves all the praise in the world for turning a small profit. I want to see more before I invest, or buy another GM.


When the government is 100% fully paid off, with interest, and the government body doesn't hold a large portion of the stocks either. Basically when the CEO can turn to the US government and say thanks for the advise, but we've got it from here, and not fear a backlash, because the government has no money or stock involved . That will be the time I think about buying another GM.

[jrc1122]

/....and since when is going bankrupt an honorable or respectable thing to do anyway..

Stock owners, got screwed, Many dealerships got screwed, people lost jobs, bills didn't get paid, and the tax payer was left on the hook. Both for the bail out.. and also the Unemployment benifits of all those folks who lost their jobs.

(Yes I understand Unemployment is yet another tax paid by the employer, but that isn't where 100% of the funds come from, the government also subsidizes that program as well)

[FenwickHockey65]

I don't understand the logic of signing up on a website focused around a company's products when you don't even support that company.

It's kinda pathetic, really.

[SuperFly03]

Originally Posted by jrc1122

/....and since when is going bankrupt an honorable or respectable thing to do anyway..

Stock owners, got screwed, Many dealerships got screwed, people lost jobs, bills didn't get paid, and the tax payer was left on the hook. Both for the bail out.. and also the Unemployment benifits of all those folks who lost their jobs.

(Yes I understand Unemployment is yet another tax paid by the employer, but that isn't where 100% of the funds come from, the government also subsidizes that program as well)

Shit happens.

It was better than the alternative.

[jrc1122]

Originally Posted by FenwickHockey65

I don't understand the logic of signing up on a website focused around a company's products when you don't even support that company.

It's kinda pathetic, really.

The more homework I did the more I became disgruntled with the political and financial problems of the company.. I don't have a problem with the Cars.

Not to mention that when i signed up I had a 2009 Pontiac G8 GT. Another Zeta platform RWD V8 car from GM.. And I did, and still do, like the New Camaro.

That is why I am here, and also because I enjoy the atmosphere on this site for the most part. Although now that I own a Ford Mustang GT (for only 2 weeks now) suddenly I have had a a few people pointing out that my car has to do with my disagreement with some of GMs decisions.

[jrc1122]

Originally Posted by SuperFly03

Shit happens.

It was better than the alternative.

Shit does happen, and when it does,, you don't invest in it.
Unless it's a fertilizer company

[Mr. Wyndham]

hmm....

[FenwickHockey65]

The hilarious part of it all is that the majority of the whiners here weren't even affected by the bankruptcy, so I don't even know why you're complaining. My family lost money when the stock tanked. We lost our dental and vision benefits. We've had other things cut.

[Mr. Wyndham]

Originally Posted by FenwickHockey65

The hilarious part of it all is that the majority of the whiners here weren't even affected by the bankruptcy, so I don't even know why you're complaining.

The keyboard in front of a person gives them a voice they don't normally have...usually. I wouldn't get too upset over it. People have opinions forged from all sorts of experiences in life, and right or wrong -- there's no changing that...in fact I would encourage the respect of it.

All that REALLY matters -- is that YOU know you're not thinking blindly. That you aren't sticking to some "principal" just to be comfortable in your beliefs. Know yourself, honestly, and you'll find the truth.

(And get a Regal...that always helps.)

[jrc1122]

Originally Posted by Dragoneye

The keyboard in front of a person gives them a voice they don't normally have...usually. I wouldn't get too upset over it. People have opinions forged from all sorts of experiences in life, and right or wrong -- there's no changing that...in fact I would encourage the respect of it.

All that REALLY matters -- is that YOU know you're not thinking blindly. That you aren't sticking to some "principal" just to be comfortable in your beliefs. Know yourself, honestly, and you'll find the truth.

(And get a Regal...that always helps.)

And just who is thinking blindly?

The person who gets excited over 1.8 Billion dollar profit, or the person who puts in perspective of losing 80 Billion over the 5 years. As I said from one of my first posts on this topic.. I think it is a step in the right direction, I continued to say, I hope they do extremely well in the future. I also said that I won't be buying stock in them. (which was the original topic), not until they are fully self sustaining and paid back ME the tax payer.

You are right, I didn't lose a job because of them. But the national debt and the continuous spending deficit is my business. Because it effects me, my kids, and grandkids.

And when the Gov't spends money they don't have to bail out GM/ and Chrysler, its on the backs of the tax payer (unless they do in fact pay it all back)

I am a tax payer, I am directly effected. and UNTIL all that money is returned with interest, and not in the forms of stocks. Then I have every right to not shop with them.


A keyboard is just one of many ways to show my dismay over their poor business practices. I don't plan on buying another NEW GM product for quite sometime. So my wallet is another way I show my dismay. I also discuss it with friends, coworkers, and family members (whenever the topic of new car buying comes up.. Or horrible government spending and taxing)


I can put aside my differences with board members, CEOs, and business strategist, and still admire the beauty of the New Camaro, the performance of the new Camaro. The coolness of the car. I don't have to be a fanboy of GM, to be a fan of the Camaro.

I don't really care for BMW cars, but I think the M series are quite nice.
I don't like Chrysler's role in the bail outs either, but I think the SRT8 line up is nice.


So again I ask who's blind? It sure isn't me.