GM posts $6B 1Q loss, spends $10.2B in cash

Yahoo! Finance:

DETROIT (AP) -- General Motors Corp. lost $6 billion in the first quarter and its revenue was cut nearly in half as car buyers feared the wounded auto giant would enter bankruptcy and no longer honor its warranties.

Read the whole story: Yahoo! Finance

Comments

[budderbean]

11:58 AM on 05/08/2009

My assessment of the American auto industry comes from having troubles with rental car's.
First I had a Lincoln Towncar. Terrible car. NOTHING has changed. It was like driving my Grandmothers 1973 Chevy Caprice. Humm It was an ex police car. Now the Lincoln stripped version is used for police cars. The next car that I got stuck with wan an Audi a-4. Now with this car I could see that European styling which on the interior showed that in ergonomics the European designers have made great advances over the American auto industry seems to have ignored. The Audi has room to improve but they are willing to take ACTION. Then I got stuck with a Buick Lacross. What the #$^k are they thinking at GM. The design staff needs to be fired and deported to la la land, (Their land of origin).

I Had a 1976 Old's Delta 88. If I still had it, and had the opportunity to restore it, and put it up against ANY of the new GM car's. It would drive and respond (Minus the cali eco standards) Better than anything that GM build today.. But what bothers me is that NOTHING has changed since 1972. What up?

Next (and now) I have a 2010 Toyota hybrid Carolla, Car hOlla. Excellent car.. Some interior problems, Switch positioning and such. But Toyota has taken steps to address the needs of the future rather than redesigning the Grand am Over and over.

[DoesItReallyMatter]

11:36 AM on 05/08/2009

To the moderator; proof positive! I have seen much, much worse in your posts.....you hypocrites!

[DoesItReallyMatter]

11:32 AM on 05/08/2009

Well, I see how fair and impartial the Huffington Post is. GM loses 6 billion poised on the threshold of bankruptcy and its NEWS. Toyota Corp. loses 7.7 billion in the first quarter and not only is it not posted! NO business can survive these losses for long, which would work out to 31 billion at an annual rate....but its not news. Where is all the moral outrage about incompetent management and sub-standard products! Yea...just as I thought, it doesn't sync with the current world view, and we wouldn't want to upset that.

[sposton]

10:57 AM on 05/08/2009

And what happens when Fiat fails? What we are doing borders with insanity.

[MuchMadness]

12:34 AM on 05/08/2009

It's not the quality of the product that has turned people away from GM. It's Sean Hannity's endorsements.

[drymartini1]

09:41 PM on 05/07/2009

GM burned through 10 billion in cash this quarter !! the endgame is very near :)

GM better stick to managing its own company well first. then look at fiat (another loser of a company).

[Andy Gross]

03:21 PM on 05/07/2009

The Administration"s decision to direct GM to dilute shareholder value by issuing 60 BILLION shares to pay off the stakeholders in this debacle calls into question tis State-supported securities "seizure" (via dilution) in the name of "the greater good." It's not something we"re used to confronting here since "unlawful search and seizure" was outlawed by the Bill of Rights in the 4th Amendment to the Constitution. My theory is this action is akin to illegal "seizure."

What would the Founders make of all this? Thomas Jefferson said, "The natural progress of things is for liberty to yield and government to gain ground."

It is time for Americans to reverse this trend and return our nation to its roots. It is time for this country to once again become a government "by and for the people," and not a handful of Wall Street bankers, incompetent government agencies and regulators, nor power-grabbing leaders whose actions demonstrate disdain and disregard for The Rule of Law when it assists them achieving their goals.

It also appears time for GM shareholders to file a Federal lawsuit to stop this action and hold GM and the Admisitration accountable.

See more at:

http://carczarconsulting.com/05/07/gm-shareholders-to-be-wiped-out-by-admisitration-appproving-gm-to-dillute-stock-by-issing-60-billion-new-shares/

Regards to all,

Andrew Gross
CEO
Automotive Consulting Services, LLC
[e-mail]
http://CarCzarConsulting.com
503-701-6003

[noaxe397]

06:56 PM on 05/07/2009

Never mind all the extremist rhetoric and populist BS. Fourth amendement my butt. It's as simple as this:

If you ask me to invest my money in your struggling business, then I am your partner and I have a say in how your business is run. It is called capitalism, something you faux capitalist have forgotten. The government did not offer GM anything; GM asked for the help. Rick Wagoner could continue doing the fine job he has done for the past decade creating the world;s leading automotive company simply by telling the government "Thanks, but no thanks."

Why didn't Rick Wagoner refuse to partner with the government and use his vast managerial experience to save GM?

[Andy Gross]

12:07 AM on 05/08/2009

Respectfully, I disagree. People have rights and no one gives up their rights simplyt because theu bought stock in a company. Please advise where my legal theory is incorrect. Thanks.

DETAILS

Further my theory, It will result in a Federal question, namely a constitutional matter, suitable for Supreme Court review. That is, if someone - with standing - such as a GM Shareholder who suffered financial damages or collateral losses would bring suit against the administration, GM and all other interested parties involved in this apparent sell-out of the victim's (shareholders) interests.

is valid. It will result in a Federal question, namely a constitutional matter, suitable for Supreme Court review. If someone - with standing - such as a GM Shareholder who suffered financial damages or collateral losses would bring suit against the
administration, GM and all other interested parties involved in the sell
out of the victim's interest.

I would even suggest a "class action" suit since there are many of the
same defendants, they suffered the same type of loss, and were all
victimized under similar circumstances. I do like the idea of strength in numbers to bring serious pressure against this government for unlawful "taking' and violation of "due process" to the shareholders. The due process issue requires a Constitutional right to
reasonable notice and a hearing before it is determined a Constitutional
"taking".

A search and seizure issue is also at stake under the Fourth Amendment, but due process issues also arise under the Fifth Amendment..

[KillTheMessenger]

11:14 AM on 05/07/2009

Time to buy a car made by GM. Now that they come with no manufacturer warranty, for the first time they are selling an "honest" product.

But hey, we all know how much a warranty by the US government is worth.

Go shopping!

:-)

[notAMoron]

11:24 AM on 05/07/2009

In Obama's America car buys you.

[Matthew Battani]

12:37 PM on 05/07/2009

And the garbage comments continue... go back to your Toyota fanboy forum. Not that the 36,000 mile Toyota warranty would've helped when the engine sludged to failure at 50,000. So what is it today... engineer or physicist, German or American who lived in Germany, small business owner or employee of a small business?

[drymartini1]

11:16 PM on 05/07/2009

GM burned through 10 billion this past quarter.

Man, if GM didnt exist, who would we short ? haha

[notAMoron]

10:59 AM on 05/08/2009

GM lost more in a quarter than Toyota lost in a year.

[John Jeffery]

11:09 AM on 05/07/2009

If GM comes out with 30% of Fiat ,this will not only give them an interest in Fiat but Chrysler ,with GMAC looking after Chrysler sales. The GM south America will be going up because Fiat will be with GM there too. GM can not lose( only in America with the blame on the UAW and CAW for doing what the American public has done) The fact that Toyota and Honda are now behind VW what now?

[DaveMathws]

01:01 PM on 05/07/2009

John,

Please explain to me how an average American has done exactly what the UAW has done? When I was laid off I was not paid 75% of my former salary. I was not guaranteed life long health insurance and a pension. Please explain this statement a little more truthfully and accurately!