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Hyundai's Midsize Becomes More Mature
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GM's Second-Quarter Sees Earnings Drop By 40%, Profit Up

General Motors Second Quarter Earnings Profit

William Maley
Staff Writer - CheersandGears.com
August 2, 2012

General Motors released their second quarter earnings report and the results are a bit disappointing. The company posted a net income of $1.5 billion and a revenue of $37.6 billion. Those numbers are significantly down from the same figures in the second quarter of 2011, when GM posted a net income of $2.5 billion and a revenue of $39.4 billion. That's a drop of 40% in income and a 4.6% drop in revenue.

This announcement comes a day after GM released their sales results for July, which saw sales drop by 6% compared to 2011 sales. Part of the decline was due to declining fleet and rental sales. The other part was due to competitors like Toyota and Honda clawing back sales they had lost due the earthquake and tsunami last march.

“Our results in North America, our International Operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM CEO Dan Akerson.

Europe was what hurt GM the most, posting a $400 million loss in the second quarter. That's a 400% increase when compared to a $100 million loss in the second quarter of last year. South America operations broke even in this quarter, but had posted $100 million profit in the second-quarter of 2011. GM International Operations, which includes the Chinese and Indian markets, posted a profit of $600 million, which matches second quarter results from last year.

North America was one bright spot for GM, posting a $2 billion profit for the quarter, down from $2.2 billion in the second quarter of 2011.

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

Press Release is on Page 2





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10 Comments

With the Euro Depression these numbers are about what I expected. I think there is more GM can do to increase efficiencies but anyone who was aware of the world issues should have expected a drop since the Asian companies came back online after the problems in that country.
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http://www.bbc.co.uk...siness-18862393

Even with Japan inc. back online, Europe is still an albatross. VW owns Europe in a way that GM used to own the USA (1930-1968). Unlike the USA, Europe stubbornly refuses to allow real restructuring in any industry, least of all cars. It is past time to euthanize the union-run auto industry in Europe for good.
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I still maintain that GM's woes in Europe are not directly capacity related but distribution related. Their dealer network there, across all of the brands they sell in Europe, is woefully inadequate compared to the natives. If anyone has a source of dealership numbers to confirm, I'd love to see it, but my feel is that Opel dealers are outnumbered by VW 4 to 1 in Germany and twice that outside of Germany. In France, Citroen, Peugot, and Renault dominate (of course) but I don't recall seeing a single Opel dealership in the week I was traveling around Paris while I saw multiple installations of the French brands.... and this was one of two Chevrolet dealers I spotted.

Olds in paris.png

While I love the vintage Olds, shouldn't there be a new Cruze in the window?
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Are you sure that is a new car dealer? Or is it a separated GM dealer that now sells only used vehicles?
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Are you sure that is a new car dealer? Or is it a separated GM dealer that now sells only used vehicles?


Looking at their website, it looks like they are a new car dealer..Chevy and Cadillac.
http://www.jeancharlesautomobiles.fr/
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Good Lord, I hope that's the back door.
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That is the front. In the other window is a vintage Camaro, but no new cars to be seen. This is in the very heart of Paris. Drive that Olds through the plate glass and the Eiffel Tower is almost directly in front of you.
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That is the front. In the other window is a vintage Camaro, but no new cars to be seen. This is in the very heart of Paris. Drive that Olds through the plate glass and the Eiffel Tower is almost directly in front of you.


Cool...
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LOOLOL! Nothing says 'Buy General Motors' like an Olds B-body in the front window!
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Maybe the new cars are locked out of sight... maybe it's a seedy part of town.
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