$39 Billion Loss for Gm
The world's largest automaker made the second largest quarterly loss in the auto industry history of the United States. General Motors lost a total of $39 billion on a charge that involves unused tax credits.
According to industry analysts, GM is heavily bleeding in North America. GM is deeply hurt by peaking gas prices, problems in the housing market and fickle-minded consumers. With this current situation, GM's restructuring efforts is hampered. Last Wednesday, GM reported their devastating cash lost.
"We continue to expect the fundamentals to worsen before they improve," Bear Stearns analyst Peter Nesvold said in a note to analysts.
According to Howard Silverblatt, senior index analyst for Standard and Poor's, GM's loss of $39 billion for the third quarter was the second-worst quarterly net loss in the U.S. corporate history under generally accepted accounting principles. The greatest loss was made by AOL Time Warner in 2002 amounting to $44.9 billion or $10.04 per share loss.
The damage to GM had been more aggravated as its strongest rival; Toyota Motor Corp. announced last Wednesday that its profit for the fiscal year rose by 11 percent making a $4 billion company record. GM and Toyota are head to head to the world's largest automaker by sales title for 2007.
GM Chairman and Chief Executive Rick Wagoner told WWJ-AM in Detroit that the accounting shift won't have a substantial impact on the business.
"I would stress no impact whatsoever on our cash position, no impact on our ability to use the tax offsets in the future, and from my perspective, really no change whatsoever in our outlook or optimism about the future of getting the business turned around," he said.
Fritz Henderson, GM's chief financial officer said that his company is optimistic with its cash and products significantly the money it will save from the new four year contract the automaker reached last month. The union controlled trust to support the health care benefits of retired GM workers would not affect their balance sheets by year 2010. Henderson also said that GM sees some benefits from the contract and they will probably start gaining it by next year.
"We feel good about our long-term prospects," he said.
It seems like it's not that bad for GM (Saab subsidiary makes Saab spark plugs). Vehicle sales were strong in other regions. In Latin America, GM poses a 22 percent volume increase and 16 percent in the Asian region.
"International and emerging markets expansion has been very positive for the company, as it establishes a dominant position in large growing markets such as China and India," said David Kudla, CEO of Mainstay Capital Management, in a note to investors.
Related Tags: auto parts, saab parts, saab auto parts, spark plugs, saab spark plugs
Evander Klum is a Business Administration graduate who hails from Alabama. He enjoys extreme sports and he is also a car racing fanatic. At present, he works as a marketing manager at an advertising agency in Cleveland.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Improve the Value of Your Truck With a Truck Bed Cover
If you are a truck owner and are looking for a way to increase the value and also protect your inves - An Overview of Emergency Road Services
Anyone that owns a vehicle definitely understands that there are truly countless facets of driving a - Buying From Car and Truck Auctions in Canada
Buying a vehicle from an auction can be a good way to pick up a bargain as long as you know what you - 2011 Green Car Of The Year- Who's In It To Win It!
The Green Car of the Year award is a program designed by Green Car Jouranl to recognize and honor ve - Honda's 2010 Odyssey is Efficient, Practical and Convenient
If you are looking for a minivan that has a seating capacity of up to eight persons and handles almo - Greener Trucks For Delivery Work
Green' is a word you'll hear a lot when it comes to transportation, from bicycles to buses - but you - The Courier and Haute Couture
Some jobs just ooze opportunity to flaunt yourself and show off your latest togs but sadly that's ra - All-New 2011 Toyota Camry
The Toyota Camry has been a continuous leader for years in the family midsize sedan class by being a - The Various Benefits Of Summer Tires
As you probably know , different tires are optimized for different conditions. Not only that, someth - A Couple of Tips on Buying a Used Cars in Toronto
If your old car has finally kicked the bucket and you need to get yourself a new mode of transport t
Most viewed articles in this category:
- How to Remove Window Tint
Applying tinting film to car or household windows may be fun, but removing it can be tricky if yo - Transporting Your Car
If you are relocating to another state or another country for employment or family reasons, you may - Choosing The Right Sticker For The Motorcycle Helmet
When people decide to buy a motorcycle, the dealer will usually throw in a helmet. This is because s - Suzuki's 2007 Xl7, “wave” Grand Vitara Debuts at the 2007 Scias
In the news: American Suzuki Motor Corporation has presented its array of cars and SUVs at the 2007 - Nissan Skyline GTR: A Racer That Is Affordable
If you've ever eyed a Porsche 911 or a Ferrari Testarossa, but thought the price was too steep, the - How To Buy Cheap Cars
There are a number of seized car auctions held in various places every month or at least quarterly. - Federal Agencies Expands Hybrid Fleet
Three federal agencies in Kansas recently added hybrid vehicles to their fleet. The hybrid vehicles - New Cars, New Gadgets Presented at the 2007 Naias
The 2007 North American International Auto Show has become an event of glamour, fashion and technolo - Aura Green Line Added to 3 Federal Fleets in Kansas
Three Kansas City area federal agencies added Monday the new 2007 Saturn Aura Green Line hybrid vehi - Top Vehicles by Autoweek Editors Honored at 2007 Naias
Everybody has favorites. Bill may like Ford cars. Susan may be attracted much by the power of pi