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GM posts $891m profit in Q2

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General Motors earns $891 million in second quarter; says U.S. sales still soft
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Sharon Terlep | Link to Original Article @ The Detroit News


General Motors Corp. turned a profit for the third straight quarter, the company announced Tuesday, signaling some steady progress in its turnaround plan.

The automaker posted an $891 million profit for the second three months of the year, a marked improvement from a year ago when GM lost $3.4 billion in the same period.

Savings from last year's plant closings and job cuts along with a better-than-expected performance from its former financial arm helped GM turn a profit even with a reduction in overall revenue.

Tuesday's financial results were affected by certain special charges such as $375 million spent on the bailout of former subsidiary Delphi Corp. and $888 million in restructuring costs. But for those charges, GM said, its earnings would have been more than $1.4 billion.

Despite the gains, the automaker is still losing money on its critical North American operations, though not as much as a year ago. GM North America lost $39 million in the second quarter, compared to a $3.95 billion loss a year ago.

"In North America we continue to make progress with our focus on great new products, a disciplined sales and marketing strategy, and structural cost reduction, although profitability remains close to breakeven," GM Chief Executive Officer Rick Wagoner said in a statement. "But our current earnings clearly demonstrate we've got more to do."

GM's overall revenue was $46.8 billion, down from $53.9 billion a year ago. Global sales volume was more than 2.4 million units in the quarter, the automaker said.

Through the first half of the year, GM has made $953 million. Last year, the automaker had lost $2.8 billion through June.

Outside North America, GM's market share increased to 9.4 percent, from 9.2 percent in the second quarter of 2006.

Slower-than-expected sales GM's new full-size pickup have hurt GM, which still relies heavily on sales of highly profitable trucks and SUV. A slowdown in the housing market and rising fuel prices are keeping keep buyers away, and competitors foreign and domestic have piled on incentives to move their trucks.

The setback with trucks has been offset in part by GM's strategies to pare back incentive spending and low-profit sales to fleet companies. By commanding more for each car and truck it sells, GM is able to pair losses amid falling sales.

Even with the progress, GM and Wall Street continued to emphasize the importance of reaching a favorable deal with the United Autoworkers Union this summer. GM, like Ford Motor Co. and the Chrysler Group, is looking to get a four-year contract with the union that will significantly reduce health care and labor costs at its North American plants.

"Everything looks very good -- North America was probably a little bit shy of where we had hoped, but the rest of the world did fantastic," said analyst Brad Rubin of BNP Paribus. "It's still going to be difficult and they're going to need a lot of concessions to consistently be profitable."

GM continues to lose market share to foreign rivals. For the first time, GM ceded the No. 1 spot in global auto sales to Japan's Toyota Motor Corp. in the first quarter of the year.

And while GM remains the top automaker in the United States, its sales are down 6.8 percent through June compared to a year ago, and it has lost more than a percentage point of its U.S. market share, which slipped to 22.8 percent

GM, at least, didn't have to deal with a loss at its former finance arm. GMAC reported a surprising second-quarter profit of $239 million, less than last year's $787 second-quarter second million profit, but an improvement from last quarter's $305 million loss. GM last year sold 51 percent of its stake in GMAC.

GM has managed to pare losses in the last year. The automaker improved significantly in 2006, posting a $2 billion loss compared to $10.5 billion in 2005.

GM performed well in regions outside North America.
  • GM Europe made $217 million, up from a $39 million loss last year. The results are the strongest for the region since 1996.
  • GM Asia Pacific made $227 million, down from $376 million a year ago. Last year's profit included $212 million from the sale of GM's interest in Isuzu.
  • GM Latin America, Africa and Middle East posted its best quarterly net income in a decade. The region made $213 million, compared to $139 million a year ago.
Edited by Flybrian
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Good news...and a 20 mpg hybrid full sized SUV and lots of new product in the pipeline should get the boat turned around once and for all. Way to go GM.

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Good news...and a 20 mpg hybrid full sized SUV and lots of new product in the pipeline should get the boat turned around once and for all. Way to go GM.

Why a 20mpg hybrid when we already have a 22mpg AFM? Unless you meant 30mpg hybrid, which just about works out if you figure a 40% mileage gain with the hybrid system...

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General Motors earns $891 million in second quarter; says U.S. sales still soft

Posted Image

Sharon Terlep | Link to Original Article @ The Detroit News

General Motors Corp. turned a profit for the third straight quarter, the company announced Tuesday, signaling some steady progress in its turnaround plan.

The automaker posted an $891 million profit for the second three months of the year, a marked improvement from a year ago when GM lost $3.4 billion in the same period.

Savings from last year's plant closings and job cuts along with a better-than-expected performance from its former financial arm helped GM turn a profit even with a reduction in overall revenue.

Tuesday's financial results were affected by certain special charges such as $375 million spent on the bailout of former subsidiary Delphi Corp. and $888 million in restructuring costs. But for those charges, GM said, its earnings would have been more than $1.4 billion.

Despite the gains, the automaker is still losing money on its critical North American operations, though not as much as a year ago. GM North America lost $39 million in the second quarter, compared to a $3.95 billion loss a year ago.

"In North America we continue to make progress with our focus on great new products, a disciplined sales and marketing strategy, and structural cost reduction, although profitability remains close to breakeven," GM Chief Executive Officer Rick Wagoner said in a statement. "But our current earnings clearly demonstrate we've got more to do."

GM's overall revenue was $46.8 billion, down from $53.9 billion a year ago. Global sales volume was more than 2.4 million units in the quarter, the automaker said.

Through the first half of the year, GM has made $953 million. Last year, the automaker had lost $2.8 billion through June.

Outside North America, GM's market share increased to 9.4 percent, from 9.2 percent in the second quarter of 2006.

Slower-than-expected sales GM's new full-size pickup have hurt GM, which still relies heavily on sales of highly profitable trucks and SUV. A slowdown in the housing market and rising fuel prices are keeping keep buyers away, and competitors foreign and domestic have piled on incentives to move their trucks.

The setback with trucks has been offset in part by GM's strategies to pare back incentive spending and low-profit sales to fleet companies. By commanding more for each car and truck it sells, GM is able to pair losses amid falling sales.

Even with the progress, GM and Wall Street continued to emphasize the importance of reaching a favorable deal with the United Autoworkers Union this summer. GM, like Ford Motor Co. and the Chrysler Group, is looking to get a four-year contract with the union that will significantly reduce health care and labor costs at its North American plants.

"Everything looks very good -- North America was probably a little bit shy of where we had hoped, but the rest of the world did fantastic," said analyst Brad Rubin of BNP Paribus. "It's still going to be difficult and they're going to need a lot of concessions to consistently be profitable."

GM continues to lose market share to foreign rivals. For the first time, GM ceded the No. 1 spot in global auto sales to Japan's Toyota Motor Corp. in the first quarter of the year.

And while GM remains the top automaker in the United States, its sales are down 6.8 percent through June compared to a year ago, and it has lost more than a percentage point of its U.S. market share, which slipped to 22.8 percent

GM, at least, didn't have to deal with a loss at its former finance arm. GMAC reported a surprising second-quarter profit of $239 million, less than last year's $787 second-quarter second million profit, but an improvement from last quarter's $305 million loss. GM last year sold 51 percent of its stake in GMAC.

GM has managed to pare losses in the last year. The automaker improved significantly in 2006, posting a $2 billion loss compared to $10.5 billion in 2005.

GM performed well in regions outside North America.

  • GM Europe made $217 million, up from a $39 million loss last year. The results are the strongest for the region since 1996.
  • GM Asia Pacific made $227 million, down from $376 million a year ago. Last year's profit included $212 million from the sale of GM's interest in Isuzu.
  • GM Latin America, Africa and Middle East posted its best quarterly net income in a decade. The region made $213 million, compared to $139 million a year ago.

Oh thank God, it looks like I'll get another pay check! :P

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only lost 39 million on North American operations? that's peanuts!

What i'd like to see is the figures for cash flow from operations. that's more critical than earnings.
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What i'd like to see is the figures for cash flow from operations. that's more critical than earnings.

Adjusted operating cash flow was $1.1bil.
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Adjusted operating cash flow was $1.1bil.

I'll have to check what they're adjusted for. Being around auditors/accountants every day, my curiosity tends to fire up when I read the word 'adjusted' :AH-HA_wink:

EDIT - There's a reconciliation to US GAAP table at the end of the presentation available at GM's website. I'll check it later on: I'm tired.

Edited by ZL-1
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I'll have to check what they're adjusted for. Being around auditors/accountants every day, my curiosity tends to fire up when I read the word 'adjusted' :AH-HA-wink:

True. Adjustment is too vague, Need to look at the tangential assets and cash flows.

Although if my memory is correct, revenues went up from $44.2 B in Q1 to $46.9B in Q2. That is about 6% not bad heh?

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"In North America we continue to make progress with our focus on

great new products (CHECK),

a disciplined sales and marketing strategy (YOUR TV ADS suck)

and structural cost reduction, (SURE OK)

although profitability remains close to breakeven," GM Chief Executive Officer Rick Wagoner said in a statement. "But our current earnings clearly demonstrate we've got more to do."

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That kills me to see "slower than expected" sales for the GMT-900s. You know those sales are going to Toyota with such aggressive advertising and even more aggressive incentives.

They HAVE to improve their advertising of the new trucks. Toyota's commercials hit them hard and they just sit back and take it, meanwhile putting out lame commercials that offer no real reason to get a GM truck over a Tundra.

Oh, and did I mention it's absolutely absurd that the trucks aren't getting the 6 speed for 2 model years after launch. Pathetic.

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True. Adjustment is too vague, Need to look at the tangential assets and cash flows.

I'm not familiar with how things are reported in the US, but I think the word 'adjustments' refers to adjustments that make what is presented different from GAAP definitions.

The 'operating' picture looks a better, but it would be interesting to rearrange the operating cash flow items differently: core-business stuff versus VEBA and 'other operating items', for example...

I don't get why debt is rising by so much when the debt markets picture isn't very nice (to say the least) and with no aditional US term debt maturities in '07... Unless GM has big payments on the horizon and wants to go to the bank instead of tapping into cash & cash equivalents...

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http://freep.com/apps/pbcs.dll/article?AID.../708010346/1014

GM profit may mask struggles to come

Its North American division loses $39 million despite cuts

August 1, 2007

BY KATIE MERX

FREE PRESS BUSINESS WRITER

General Motors Corp., like Ford Motor Co. last week, surprised investors Tuesday with better-than-expected second-quarter profits.

GM reported an $891-million margin, more than double what Wall Street had expected, but analysts caution that the turnaround at the nation's largest automaker is far from complete.

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In fact, the road could get rough again soon, because GM's North American division practically broke even -- it lost $39 million in the quarter -- despite cutting $9 billion in annual costs and hitting peak production of the full-size pickups and SUVs that have provided the company with its greatest profits.

Despite apparent progress in cutting costs, both automakers are losing customers and not making enough money in the crucial North American market, analysts say.

"GM's merely breakeven performance in North America at the peak of its product cadence likely sends the message additional further restructuring remains imperative," Goldman Sachs analyst Robert Barry said in a note to clients.

GM Vice Chairman and Chief Financial Officer Fritz Henderson said the company is reaping benefits of hard work on fundamentals to turn around its North American operations, but he said the second half of 2007 looks to be a tough one for the U.S. auto industry and in particular for GM.

"The U.S. market is certainly selling below trend," Henderson said.

GM's $891-million profit, while a major improvement over its $3.4-billion loss in the same quarter last year, reflects a slim 1.9% profit margin.

Economists and analysts say demand for new vehicles will slow in the second half of the year due to higher fuel prices, reduced consumer confidence and a slowing housing market.

"They have taken pretty aggressive action to reduce their cost structure," industry analyst Erich Merkle of IRN Inc. said. "And GM is starting to turn a bit of a corner with its new product offerings. But the second half of this year is going to be incredibly tough for the automaker. ... At some point this year -- it depends on when they decide to cut back on production -- they will probably be back in the red."

While GM reported positive cash flow in the second quarter, Henderson said, the automaker expects to return to spending money faster than it makes it before the year is up.

Ford, too, is burning through cash and looks at selling its European luxury brands to raise money it might need to pay for up-front costs in the UAW contract. Negotiations between the automakers and the UAW began last week and are expected to continue through mid-September.

Analysts expect reducing the union portion of GM's $64-billion health-care liability to be a top priority for the automaker in those talks. While Henderson wouldn't comment on UAW talks, he reiterated Tuesday that GM remains focused on stanching its rising health care costs.

Retiree benefits already cost GM $1 billion this year.

David Cole, chairman of the Center for Automotive Research in Ann Arbor, acknowledged that "a great deal depends on the labor negotiations this summer."

Nevertheless, he said, the surprise profits at GM and Ford are evidence that analysts "are not taking a very accurate look inside the companies" and that the Detroit automakers' financial turnarounds are taking hold.

"In GM's case, they are pretty well along in their turnaround," Cole said.

GM's $39-million North American loss includes $520 million in one-time charges associated with the bankruptcy reorganization of former parts arm Delphi Corp. and other items.

Excluding Allison Transmission, which it is in the process of selling, North American operations reported a slight profit of $78 million for the quarter, compared with an adjusted loss of $94 million from continuing operations a year earlier.

At the same time, the company benefited from 80 cents of earnings improvement from tax-related gains.

"GM still has a long road ahead, in terms of the turnaround," analyst David Kudla of Mainstay Capital Management wrote Tuesday. "But this earnings report is further evidence that the plan is working."

And, there's another story that's very important, Cole said: While the second half of the year promises to be a tough one in the United States, "the rest of the world is beginning to kick in pretty strongly."

GM Chief Executive Rick Wagoner said in a statement: "Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings."

GM's European unit had its largest profit since 1996 with a $217-million profit after posting a $39-million loss a year earlier. First-half sales in the region were a record 1.13 million cars and trucks. Profits in the GM division that covers Latin America, Africa and the Middle East grew 53% to $213 million.

While revenue from GM Asia-Pacific vehicle sales rose 44% over the year-ago quarter, net profit fell compared with the same quarter last year when GM recognized the $212-million gain from the sale of its stake in Isuzu Motors Ltd.

GM also recognized a $139-million gain from its 49% stake in lender and insurer GMAC, which reported a $293-million profit in the second quarter, despite losses in the division that lends to borrowers with sub-prime credit.

Still, the automaker and analysts say, GM must be profitable in North America, the world's largest region for auto sales and historically the most profitable.

The company Saturday began offering 0% financing for up to 60 months on certain versions of its full-size pickups to boost sales of the redesigned trucks.

"North America is still their most important single market," Cole said. "They've got work to do here ... But there is hope."

Hometown Paper isn't too enthusiastic....

Edited by enzl
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http://freep.com/apps/pbcs.dll/article?AID.../708010346/1014

GM profit may mask struggles to come

Its North American division loses $39 million despite cuts

August 1, 2007

BY KATIE MERX

FREE PRESS BUSINESS WRITER

General Motors Corp., like Ford Motor Co. last week, surprised investors Tuesday with better-than-expected second-quarter profits.

GM reported an $891-million margin, more than double what Wall Street had expected, but analysts caution that the turnaround at the nation's largest automaker is far from complete.

Advertisement

In fact, the road could get rough again soon, because GM's North American division practically broke even -- it lost $39 million in the quarter -- despite cutting $9 billion in annual costs and hitting peak production of the full-size pickups and SUVs that have provided the company with its greatest profits.

Despite apparent progress in cutting costs, both automakers are losing customers and not making enough money in the crucial North American market, analysts say.

"GM's merely breakeven performance in North America at the peak of its product cadence likely sends the message additional further restructuring remains imperative," Goldman Sachs analyst Robert Barry said in a note to clients.

GM Vice Chairman and Chief Financial Officer Fritz Henderson said the company is reaping benefits of hard work on fundamentals to turn around its North American operations, but he said the second half of 2007 looks to be a tough one for the U.S. auto industry and in particular for GM.

"The U.S. market is certainly selling below trend," Henderson said.

GM's $891-million profit, while a major improvement over its $3.4-billion loss in the same quarter last year, reflects a slim 1.9% profit margin.

Economists and analysts say demand for new vehicles will slow in the second half of the year due to higher fuel prices, reduced consumer confidence and a slowing housing market.

"They have taken pretty aggressive action to reduce their cost structure," industry analyst Erich Merkle of IRN Inc. said. "And GM is starting to turn a bit of a corner with its new product offerings. But the second half of this year is going to be incredibly tough for the automaker. ... At some point this year -- it depends on when they decide to cut back on production -- they will probably be back in the red."

While GM reported positive cash flow in the second quarter, Henderson said, the automaker expects to return to spending money faster than it makes it before the year is up.

Ford, too, is burning through cash and looks at selling its European luxury brands to raise money it might need to pay for up-front costs in the UAW contract. Negotiations between the automakers and the UAW began last week and are expected to continue through mid-September.

Analysts expect reducing the union portion of GM's $64-billion health-care liability to be a top priority for the automaker in those talks. While Henderson wouldn't comment on UAW talks, he reiterated Tuesday that GM remains focused on stanching its rising health care costs.

Retiree benefits already cost GM $1 billion this year.

David Cole, chairman of the Center for Automotive Research in Ann Arbor, acknowledged that "a great deal depends on the labor negotiations this summer."

Nevertheless, he said, the surprise profits at GM and Ford are evidence that analysts "are not taking a very accurate look inside the companies" and that the Detroit automakers' financial turnarounds are taking hold.

"In GM's case, they are pretty well along in their turnaround," Cole said.

GM's $39-million North American loss includes $520 million in one-time charges associated with the bankruptcy reorganization of former parts arm Delphi Corp. and other items.

Excluding Allison Transmission, which it is in the process of selling, North American operations reported a slight profit of $78 million for the quarter, compared with an adjusted loss of $94 million from continuing operations a year earlier.

At the same time, the company benefited from 80 cents of earnings improvement from tax-related gains.

"GM still has a long road ahead, in terms of the turnaround," analyst David Kudla of Mainstay Capital Management wrote Tuesday. "But this earnings report is further evidence that the plan is working."

And, there's another story that's very important, Cole said: While the second half of the year promises to be a tough one in the United States, "the rest of the world is beginning to kick in pretty strongly."

GM Chief Executive Rick Wagoner said in a statement: "Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings."

GM's European unit had its largest profit since 1996 with a $217-million profit after posting a $39-million loss a year earlier. First-half sales in the region were a record 1.13 million cars and trucks. Profits in the GM division that covers Latin America, Africa and the Middle East grew 53% to $213 million.

While revenue from GM Asia-Pacific vehicle sales rose 44% over the year-ago quarter, net profit fell compared with the same quarter last year when GM recognized the $212-million gain from the sale of its stake in Isuzu Motors Ltd.

GM also recognized a $139-million gain from its 49% stake in lender and insurer GMAC, which reported a $293-million profit in the second quarter, despite losses in the division that lends to borrowers with sub-prime credit.

Still, the automaker and analysts say, GM must be profitable in North America, the world's largest region for auto sales and historically the most profitable.

The company Saturday began offering 0% financing for up to 60 months on certain versions of its full-size pickups to boost sales of the redesigned trucks.

"North America is still their most important single market," Cole said. "They've got work to do here ... But there is hope."

Hometown Paper isn't too enthusiastic....

I wouldn't be either.

With 4 buck a gallon around the corner...and a possible looming recession coming...this could put a serious dent into all the automakers.....

When the analysts said that one of the big three might not be around in the next five years, my guess is that they might have saw this coming....

I know of five major US companies who are planning some serious cutbacks soon......

I don't want to sound all doom and gloom, but I don't see things getting better...

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our gas prices have actually fallen under $3

And ours just jumped 20 cents back up over 3 today...

It won't last long....still waiting for a the labor day gas hike... :rolleyes:

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Times ahead might not be pretty indeed: I am very curious as to how this subprime mortgage stuff will play out, and if it will spread... If the housing market gets a real beating and a significant number of people get trapped in a negative equity situation, things will get ugly not just for GM but for the whole economy.
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Good news. Getting a good contract with the union is key. Without it, the competition is still going to have a large advantage. Advertising and marketing needs to improve, too. Stop with the traditional stuff and expand into the more unique ways of marketing.

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GM's merely breakeven performance in North America at the peak of its product cadence

Say what?

We still have coming over the next two years:

CTS

Malibu

G8

Camaro

Enclave <just got in the middle of last quarter>

Astra

Vue

Hybrid GMT-900s

Impala

Lucerne/Park Ave

Alpha Pontiac

Alpha Cadillac

and I'm sure I'm forgetting others....

there's still some steam left in that engine......

Malibu alone could be breakthrough product for GM..... Taurus looks like it's proving a good product with a classic American nameplate can still sell.

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Say what?

We still have coming over the next two years:

CTS

Malibu

G8

Camaro

Enclave <just got in the middle of last quarter>

Astra

Vue

Hybrid GMT-900s

Impala

Lucerne/Park Ave

Alpha Pontiac

Alpha Cadillac

and I'm sure I'm forgetting others....

there's still some steam left in that engine......

Malibu alone could be breakthrough product for GM..... Taurus looks like it's proving a good product with a classic American nameplate can still sell.

The GMT-900's were the killer app, according to finance types. Having to give away these products ONE year into the life cycle is a big problem (which may get worse.) Think about it...$5-10k profit/per unit, and they'll sell 200K or more less than planned (and I'm being conservative). That's leaving Billions in shortfall.

The rationale for delaying Zeta (and god knows how many programs) was a pull-ahead of the 900's....Plus, The last half of your list are '09's....and none other than the Impala are true 'volume' nameplates.

The proper product cadence would have GM development on a 5 year cycle. With 50+ vehicles, that's 10+/year. That's a cadence issue.

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Times ahead might not be pretty indeed: I am very curious as to how this subprime mortgage stuff will play out, and if it will spread... If the housing market gets a real beating and a significant number of people get trapped in a negative equity situation, things will get ugly not just for GM but for the whole economy.

Not to change subjects, but I've wondered about this for awhile now. I'm in the midwest (NE, Indiana) so were in the "cheapest" part of the US and can't believe what going on for house prices elsewhere. A guy I know in AZ recently bought a house for $450k and is now appraised at $625k, well, he's is just doing a intrest only loan on it to afford it. At what time is the housing bubble going to pop? Realtors are a good portion of the blame, they work hard and mighty to keep numbers up. Mine is appraised at $225k but if it was in Pheonix it'd be worth $500-$600k alone, and that doesn't account for my 3.5 acres or the 24x40 detached garage. It's the lake property here that, to me, is crazy at $3000-$4000 per foot of lakefront plus whatever the dwelling is on it, and it's a buyers market here.

If it all does pop, luckily I'm in a good position with 40% of my mortgage paid off and a 4.875% rate.

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Despite apparent progress in cutting costs, both automakers are losing customers and not making enough money in the crucial North American market, analysts say.

Naturally... They're still feeling the fallout from the media panning them for 4 years now... And guess what, it won't end anytime soon because the media still wishes death for our automakers.
"GM's merely breakeven performance in North America at the peak of its product cadence likely sends the message additional further restructuring remains imperative," Goldman Sachs analyst Robert Barry said in a note to clients.

As far as I know, 2007 isn't the peak of it's product cadence and 2... I'm sure the next breath was "Cut 2 or 3 divisions"

GM Vice Chairman and Chief Financial Officer Fritz Henderson said the company is reaping benefits of hard work on fundamentals to turn around its North American operations, but he said the second half of 2007 looks to be a tough one for the U.S. auto industry and in particular for GM.
As GM just sits back and takes it.
Economists and analysts say demand for new vehicles will slow in the second half of the year due to higher fuel prices, reduced consumer confidence and a slowing housing market.

Ya know, I just read a damn article about how the oil industry was doing very well and how prices should be fine for the near future.... Yet now that this was exposed, it seems that prices are already starting to go up and the industry is already starting to eff around again. So which is it?

"They have taken pretty aggressive action to reduce their cost structure," industry analyst Erich Merkle of IRN Inc. said. "And GM is starting to turn a bit of a corner with its new product offerings. But the second half of this year is going to be incredibly tough for the automaker. ... At some point this year -- it depends on when they decide to cut back on production -- they will probably be back in the red."
1) "Turned a bit of a corner"?!?!?!?!?!?!? GM has the BEST product in the industry coming out and "They've turned a bit of a corner." 2) I love how the analysts are already downplaying the results and begging for production cuts.

Nevertheless, he said, the surprise profits at GM and Ford are evidence that analysts "are not taking a very accurate look inside the companies"

No real surprise there.... Like the media, the analysts have a "standard answer" for the Detroit automakers. It involves "FAILURE" and "DO NOT CONSIDER"

and that the Detroit automakers' financial turnarounds are taking hold.

Not for long, if articles like this continue.

It's the same &#036;h&#33;/different day, especially for the anti-Detroit free press.... GM can never be "good enough" and these people will never give credit where it's due.

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The GMT-900's were the killer app, according to finance types. Having to give away these products ONE year into the life cycle is a big problem (which may get worse.) Think about it...$5-10k profit/per unit, and they'll sell 200K or more less than planned (and I'm being conservative). That's leaving Billions in shortfall.

I don't think GM is to the point of "giving away" 900s yet. Eventhough some of those products might not be volume, they still pull in healthy profit margins.

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