GM reports $15.5 billion loss
August 4, 2008 by Alborz Fallah
The big American three appear to be having more and more issues as consumer demands change from big cars to smaller more fuel efficient vehicles. So much so that General Motors, once the world’s largest manufacturer, has reported a $15.5 billion loss.
However that’s not the worst bit, the old general also suffered abysmal second-quarter earnings. General Motors’ North American quarterly revenue totalled only $19.8 billion, nearly $10 billion less than the same period 12 months ago.
If you’re wondering why that is significant, analysts generally view revenue as a strong indicator of an automaker’s health as it does not contain any one-time items.
“Revenue is a measure of the business going forward, they’re in a battle for their life.” said Dave Cole, chairman of the Centre for Automotive Research in Ann Arbor, Mich.
The company is contributing about 20 per cent of the revenue downturn to production lost during the strike at American Axle & Manufacturing Holdings Inc. Additional factors include the slowing U.S. economy.
However the biggest factor is the disappearing sales of high-profit trucks, a problem faced by all major three U.S. manufactures.
Not that there is much GM can do, having already announced plans to reduce annual truck production capacity by 500,000 units. CEO Rick Wagoner declared recently that the consumer shift away from big trucks is not a temporary trend and is here to stay. He says GM’s product plans reflect that.
So how will GM turn its fortunes around? Over the next 1.5 years, the company plans to introduce 19 new vehicles, 18 of which are either cars or crossovers.
There are even plans for a Chevrolet minicar early next decade, meanwhile the company is considering small cars for its Saab, Cadillac and Saturn brands as well.
One car which has so far given GM some hope, is the Chevrolet Volt, a plug-in hybrid that will debut in 2010. Even so, insiders say the car is expected to cost around $40,000 USD, making it a small-volume niche vehicle.
Meanwhile arch rival Toyota has taken the title as the world’s largest manufacturer, marginally outselling GM last year and posting record profits.
Will the company’s financial problems push it to the point of no return, or is this the begning of a new era for the company?
Print it: 
Yes Robbo the Sunbird was that good that Toyota used the GMH Starfire four in two successive Corona models.LOL.
At least the Sunbird handled and rode A LOT better and was a substantially stronger car. Those Coronas verged on the dangerous as reported in the motoring press of the day.
How soon some of us forget how incompetent Toyotas were even compared to the later and much maligned Korean offerings.
Realcars, don’t sweat the small stuff, its not worth the effort. Of course people will forget about about dull cars or cars that either failed to sell or failed to last. All the manufacturers have been guilty at some stage. Sure, alot of the Toyota range in the 60’s 70’s and early 80’s was ordinary, but then again Ford gave us the Cortina. Holden gave us the Camira, Mitsubishi the Sigma. Not to mention some of the rubbish that they tried to pass off during the late 80’s and early 90’s.
U might remember wheels transplanted a 2.6 astron into a then new VH Commodore with 5 speed and got the best of both worlds as they put it at the time.
Sigma wasn’t a bad car in its day. The Turbo Peter Wherret special got excellent reviews at the rime.
The Cortina was also a good car in relative terms until they stuffed an iron big six in it. By the time they got to TF it wasn’t a bad thing as much even with the big six donk.
Early Camiras were rubbish but the final series was a beauty with the global mpi 2 litre that seen service in many different makes and models after the demise of the Camira.
I had a 5 speed wagon as a company vehicle at the time and 150,000 on it,was always fully loaded with gear and never missed a beat. Only had oil,pads and tyres and went and drove like a sports car.
realcars & wheelnut you two are the optium of the aussie bogan you cant see past the fact that holden & ford in australia are dying it only bogans like you two that somehow see something good in these hopeless companys! realcars do your history the corona with the starfire engine was a australian govt plan (the button plan) toyota had no say in the matter and at the time toyota were discusted that our cars had a shitbox holden motor in them! in case you two dont know toyota are now selling more cars than holden & ford combined and thank god the australian public are way smarter than you two bogans! HOLDEN & FORD RIP! TOYOTA RULES!
and i bet i can tell what you guys drive someone with a name like realcars would have to drive a daewoo barina and wheelnut that would be a ford ka! am i right, both magnificent examples of holden and ford manufacturing!
and also realcars are you for real (joke) “the peter wherret sigma wasn’t a bad car in its day” that is the funnist thing i have heard in years! and the final series camiras where good cars, why do you make up this crap! do you realy believe the dripple that comes out of your mouth!
It must be hard changing your name all the time, dingo!
Guys just ignore the the ‘troll’ If we feed him he keeps on spitting blah, blah.
hey adam who are you calling a troll buddy! this is not dingo (who ever that is) check with caradvice if you dont believe me! i am a person with an opinion who gets sick of the dribble from the likes of realcars and his bogan mates. OK ADAM!