GM Loses $6 Billion in First Financial Quarter, Burns $10.2 Billion Cash
GM is auguring-in for its date with a bankruptcy judge, burning [your] cash, shedding share and losing money as it goes. The latest ding: the company reports that it’s lost $6 billion in the first financial quarter. That’s almost double last year’s Q1 results ($3.3 billion). Revenues sank 47 percent ($22.4 billion from $42.4 billion). As always, there’s a lot of waffle in the official press release: “GM’s automotive results in the first quarter of 2009 were driven by a revenue decline in all regions, due in part [in part?] to a depressed global industry. In addition, GM’s results were impacted by unfavorable foreign currency exchange and mark-to-market commodity hedging versus the year-ago quarter. However, these losses were partially offset by a significant structural cost improvement of $3.1 billion when compared to the first quarter of 2008.” But the bottom line is clear: the federally-funded automaker’s house is on fire and so far from profitable it’s not even in the same solar system. GM CEO Fritz “Wagoner Clone” Henderson reckons he knows how to plot a course for the Milky Way.
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Phil Ressler: No amount of money will do what you suggest. I have long argued that GM could MAYBE be saved with an infusion of new management, someone who is a leader, preferably with some turnaround experience. But THERE IS NOBODY NEW at this company. These guys have worked all their lives at the world's largest industrial corporation. Most of these guys came to work there when the company had a market share of 45-50 percent. This company has had 35 years of chances to build better cars. If Chrysler or Ford had been run by these people, this culture and this management structure, they would have been gone by 1982. I am still unable to come up with an example of a major industrial turnaround that worked without massive new blood at the top of the organization. Won't work here either.
Phil..Please forward your resume to President Obama for the CEO position.Buickman has marketing sewn up.Find a place for PCH 101,we need his smarts.Pay RF an obscene amount of money to write car reviews.Hey I'll sign up for labour relations rep.You don't even have to pay me,well....maybe a new Corvette once a year...and don't forget my pension check.