GM expects to return to profitability by 2011

[azulejost]

Link

[J-150]

LMAO!!!!

 

 

I'm sure that model is based on SELLING CARS which most of us agree GM will see huge volume dropoff attached to their corporate welfare cheque.

[97svtgoin05gt]

REAL HEADLINE: "GM EXPECTS NEXT EMERGENCY FEDERAL GOVERNMENT FUNDING REQUIRED IN 2011 BASED ON LIMITED NEW PRODUCT R&D AND BUSINESS AS USUAL MANAGEMENT TEAM STILL IN PLACE"

[Extreme4x4]

Oh yea............. all the faithful on GMI, have bought this hook, line, and sinker.

 

The funny part, to me, is that just a few days ago, GM was supposed to start making a profit within 60-90 days outside of BK.

 

Another funny part (ridiculous part), is GM's sales projections.

[jpd80]

[ANTAUS]

"GM expects to return to profitability by 2011"

 

Yeah right...

[LSFan00]

Why would they even care about profitability?

[jpd80]

Why would they even care about profitability?

The government wants its money back and to do that it has to sell it's stock in GM,

a profit should make the GM stock attractive to other investors.

 

There is a problem with the plan:

 

1) Buy GM

2) ?

3) Profit

Edited June 6, 2009 by jpd80

[LSFan00]

I don't know why you would think "the government" cares about "it's investment." They'll just confiscate more property if they need to...

[Ron W.]

"GM expects to return to profitability by 2011"

 

Yeah right...

 

 

I would think and hope that by 2011 the markets and economy will have stabilized and economic growth would allow even those companies now losing money to return to profitability, even GM.

[azulejost]

Another funny part (ridiculous part), is GM's sales projections.

 

Link

 

I apologize if you have to register to see that article, it's free though.

 

"The economic boom drove auto sales to a peak of 17 million vehicles in 2005, but the market crash has pushed sales to a projected 10 million in 2009 -- nearly 42 percent below the peak. Through last year, the average annual total this decade was 16.4 million. [...]

 

The credit bubble distorted the market and sales were much higher than they should have been," said independent auto analyst Erich Merkle. "Sales simply couldn't be sustained at those levels."

 

But Merkle believes that, while the U.S. car market is going to be smaller, the long-term sales trend will be for around 15 million vehicles annually -- around 12 percent below the peak.

 

"It may take a while, but the U.S. market will come back," he said. "There is a lot of pent-up demand out there."

 

Mirko Mikelic, an analyst at Fifth Third Bank, said that while he also sees pent-up demand for cars, he expects 13 million to 14 million units annually will be the "new normal."

 

"The market was juiced up on easy credit," he said. "With the deleveraging of the U.S. consumer, the market will be flat to depressed for years.""

 

So GM thinks they can be profitable with 16 mil US annual sells in 2012, yet the analysts suggest nothing more than 13-15 million annually. Hmm, sounds like some funny math to me and the reason GM has been losing money for years already--overly optimistic projections of the market and their seeming ignoring of their dwindling market share.

 

The article also states the future volume leaders will be mid-size cars. I thought they have been the leaders for many years other than the F-150? Yes, SUVs sold well in the past, but Accords, Camrys, and Tauruses before them also outpaced in total volume.