Another “dog bites man” headline.
And this despite the GM’s economically unsustainable UAW retirement benefit contract costs having been made part of the U. S. Government/Taxpayers multi trillion dollar debt, via the Stimulus spending gimmick.
GMC = General Mess of Cr@p (i censored it).
Chevy Volt
Chevy Malibu
Chevy Spark
See a pattern electric, hybrid do not sell do not work.
Looks like my next car will be either a Ford, Honda, Toyota or Volkswagen. The way it is going there will be only 1 US Car Manufacturer Ford
Bump for later
I rarely wish anyone ill, but GM and those who deal with it are exceptions. The “Old GM” bankruptcy was shockingly corrupt, even by the standards of Obama’s conduct. I hope GM dies either a quick death or a slow death, but I want that company to disappear and leave nothing behind. I have no sympathy for “New GM” stockholders who lose money, for “New GM” customers who find out they bought a lousy product, or for “New GM” employees who get shafted by what they already know to be a corrupt company. I am boycotting GM forever because of their corruption, and I have no sympathy for anyone who is hoping for a good deal at the expense of those “New GM” ripped off.
In my little city, when the price of gasoline went down, the young men were out buying new pickups. The price of gas is going back up.
This isn't the whole story (and I'm not covering the "questionable methods" stuff yet again). Yes their cash and marketable securities are down. But if a company breaks even on free cash flow (cash flow from operations less CapEx) and then uses cash to pay down $5 billion in debt is that a sign of the company going in the wrong direction? Absolutely not. For FY12 GM generated $10.6 billion in cash flow from operations ans spent $8.1 billion in Cap Ex which results in Free Cash Flow of $2.5 billion. Being FCF positive is a very good thing. In fact, the $2.5 billion is higher than FY11 FCF of $1.9 billion and equal to the FY10 level of $2.5 billion. Where they used their cash was in the repayment of debt $7.4 billion and the repurchase of stock $5.1 billion. I have not taken the time to see if this stock repurchase was common shares or government shares. If it's common repurchase then that is a very common practice of returning cash to shareholders (see David Einhorn and AAPL). If it's the repurchase of government shares then that's also a good thing. Just because cash declines doesn't mean it's a bad thing. Take a look at the components of the statement of cash flows to see what is going on. If they are bleeding FCF then the conversation about "going the wrong way" is relevant.