By on November 9, 2011

GM’s net income in the 3rd quarter was $1.7 billion, down a bit from $2 billion in the same quarter of last year. What was up though was total global production. According to data published by GM, global production in the first 9 months rose to 6.95 million, up 7.8 percent from the same period in 2010 when 6.45 million were made. If GM maintains that pace in the 4th quarter, and there is no reason not to, GM should end the year with a global production well over 9 million.

This would establish GM solidly as the world’s largest automaker, well ahead of second-ranked  Volkswagen. Those who predicted a totally different outcome will attend the annual crow-eating festivities.

 

 

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38 Comments on “GM Well On Its Way To World’s Largest Carmaker...”


  • avatar
    morbo

    PT Barnum…sucker…every minute.

  • avatar
    cmoibenlepro

    More cars, less income?
    Not very positive IMHO…

    By the way, whoa what a fish!

  • avatar
    wsn

    Just build more GM WuLings and shoot for 10M!

  • avatar
    alluster

    GM’s net income attributable to common stockholders was $2.0 billion, or $1.20 per fully-diluted share. Net revenue increased $2.6 billion to $36.7 billion, compared with the third quarter of 2010.

    For the Year, net income is 8.4 Billion vs 4.7 B in 2010.

    GME losses seem to be coming down. 292 million lost in Q3 2011 vs 559 million in Q3 2010. For the first nine months, GME lost 580 million vs 1,196 Million in 2010. If they get the EU unit to be profitable, GM can generate 10B in annual profits.

    Profit margins are still low and it looks like the CEO is adamant about changing that.

    http://www.autonews.com/apps/pbcs.dll/article?AID=/20111108/OEM/311089853/1144

  • avatar
    carbiz

    I’m of two minds about GM being #1 in world sales again. First off, there’s an adage in business that says you don’t want to be #1 because it makes you a target. A 30 year veteran of the auto biz told me that in my first week. Stay at #2, he advised. You’ll live longer and make almost as much money.
    Just look at what happened to Toyota as soon as they became ‘#1.’ Naturally, there are marketing advantages to being able to brag that you are #1. Ford with the F-150, or Toyota going on about being the #1 make, etc.
    I think the jury is still out about whether or not pursuing all these ‘partnerships’ in China is going to pay off in the long term. I cannot help but think VW, Ford, GM, etc. are only arming their future foes. Asia does not have a very good track record with respecting intellectual property or honoring Agreements.
    Plus, with GM having sold 2.35M units last year in China, they are on track to hit 3M units in 3 years. Unless the U.S. market makes a miraculous recovery between now and then, GM China will be the volume leader, not GMNA. How will that shake up things at the RenCen?
    Then again, Toyota only beat GM by 46k units last year, so this development should not be a surprise. Toyota is rapidly losing its safe market in the homeland which will have a greater impact on its profitability and volume than what is happening in the U.S.

    • 0 avatar

      Not sure you want to be thinking of China as your “foes”, xenophobe.

      • 0 avatar
        LALoser

        Xenophobe is a bit much Cole. I take it as GM training their future business competition, which has been done and proven before when Communist China does a knockoff up the road to undersell the original. Race has nothing to do with it.

      • 0 avatar
        daveainchina

        @Cole

        Not xenophobe, just some healthy skepticism.
        on the one hand companies cannot afford to ignore China on the other hand China has a track record of stealing technology and then claiming it’s their own innovations.

        Just look at the High Speed Rail industry around the world and ask Kawasaki (Japanese company in case you don’t know) what is happening to them with their technology.

        It’s now being challenged in court but already Kawasaki has lost a couple of contracts to Chinese companies using their technology.

        It’s a real issue and one we [email protected] well take notice of. there is a sense of hope, optimism and industriousness in this country that I’ve not seen in the USA since Ronald Reagan. And I bet some would say not since JFK and the space race.

        Sure there are problems here(in China in case you can’t read my name) but with over 1 Billion people they can find enough smart ones here to help figure it out.

        Unless you have been here, you just have no idea what the USA is up against, if you think WWII was tough for the USA, the economic challenge that this country represents is so far beyond that I cannot conceive of an accurate analogy.

    • 0 avatar
      eldard

      We all know Toyota was simply the whipping boy as Japan was being punished for even talking about kicking out the US bases just before the sudden acceleration fiasco. *wink* The world should avenge Japan by avoiding Detroit cars. Oh, wait. They already do. As said above, suckers every minute born. In this case they were all birthed in the Americas, and China. lolz

      P.S. I love my tinfoil hat. ;)

  • avatar

    How appropriate. A BIG bottom-feeder. FUGM.

  • avatar

    Nutshell: They’ve got costs under control in the US, and the product revamp is underway. They need to complete the product revamp, and get costs under control (meaning, lower the point at which they break even) in other regions, especially Europe.

    China’s sales volume lead won’t shake anything up. China brought in something like $400m this quarter, whereas North America brought in (going from memory here) $2.2B. The scale and presence added by China is extremely important, but in terms of the RenCen pecking order, money talks, and there’s more of it when you don’t have to split it with JV partners.

    • 0 avatar
      Ralph SS

      “Nutshell: They’ve got costs under control in the US”

      Now that’s funny, right there.

      • 0 avatar
        alluster

        @Ralph – WSJ is one of the most critical media outlets out there when it comes to GM. They do have costs under control in NA, otherwise they wouldn’t be making more than 2B in profit every quarter. Note that the profits in NA are well over 2B.

        http://online.wsj.com/article/SB10001424053111903454504576487822808431928.html

      • 0 avatar
        alluster

        @Ralph – They do have costs under control in NA, otherwise they wouldn’t be making more than 2B in profit every quarter. Note that the profits in NA are well over 2B.

        Nice read about GM’s restructuring efforts. WSJ is one of the most critical media outlets out there when it comes to GM.

        http://online.wsj.com/article/SB10001424053111903454504576487822808431928.html

      • 0 avatar
        eldard

        All the more reason to avoid them altogether. They’ve got costs under control, but still got the UAW leech on their backs by employing 2-3 times the workers of Toyota North America. I’ve said it before and I’ll say it again, care to guess what department might get the scrimpage? ;)

      • 0 avatar
        damikco

        @ eldard So what is the problem with giving people a job? Since they have cost under control and still can find a way to pay well your rant is pathetic.

      • 0 avatar
        eldard

        They’re back to where they came from? If you keep sucking on the host, it will die eventually. And you’ll starve to death. ;)

      • 0 avatar
        eldard

        So what department you think gets the cuts? Is it the vending machine section? lolz

      • 0 avatar
        wsn

        @damikco: “So what is the problem with giving people a job? Since they have cost under control and still can find a way to pay well your rant is pathetic.”

        Job can only be earned. Welfare is given.

    • 0 avatar
      daveainchina

      @John Rosevear

      You’re right there is a lot more $$$ on the table when you don’t split it with Joint Ventures in China. However GM here has SAIC, but Volkswagen has SAIC AND FAW.

      So Volkswagen is getting revenue from 2 joint ventures, which is partially why they are growing so fast here.

      Chines from Shanghai think that they build the best quality and that other areas of China build bad quality. And the people from Beijing (where FAW is from) think that Shanghai builds bad quality cars. This interesting scenario also gets you both the European and American specced cars on the market. Chinese are very parochial when it comes to judging quality, image and reputation is MUCH more important than substance. That’s one of the reasons so many buy fake purses, they just want the name and many don’t care about the quality.

      In addition SAIC is getting technology from both companies in addition to buying out Morris Garage for more western technology. Which certainly puts them in an interesting position for acquiring and developing new technology.

  • avatar
    Zackman

    I’m hoping for the best on this one. Either this is just an illusion because GM’s legacy costs and debt have been wiped clean or this is real. The profit margin is a concern, because their transaction prices don’t seem to instill as much confidence as a few other automakers have a much better ratio, so in order to sell their cars, they must do so at a lower price than a similar model from another OEM.

    …wait and see.

    • 0 avatar
      highdesertcat

      We’re all hoping for the best. But this is just an illusion. GM was the world’s largest carmaker for a very long time prior to 2008 and that did not stop it from dying an arduous, decades-long, slow death.

      Are we to believe that somehow in someway GM has been resurrected with tax payer money and that now, miraculously, it can weather its own? Not likely! We’re not even talking about repaying the bail out bucks, nor are we talking about interest.

      Breaking even is the goal. But as long as the tax payers own GM we can be deluded into thinking that somehow GM is making money? That doesn’t even fly in a sophomore Intro to Business 101 class.

      Face it, the tax payer money is lost. GM is headed to China, if China wants it. By 2015 GM’s presence in North America will be a mere shadow of its former self, with more product being made outside of America. And the tax payers will be the biggest losers, just like they were with the bail out of Chrysler.

      GM the world’s largest carmaker? Deja vu all over again……

      • 0 avatar
        getacargetacheck

        Taxpayers were big winners because of the bailout. The fact that GM and Chrysler and their employees and their suppliers’ employees are still around at all to pay taxes is evidence of success. You really think we would be better off not collecting taxes from the formerly employed while paying out even more in unemployment insurance to those same thousands of people? Oh, and 1/3 to 1/2 of the US auto industry would be gone forever. Never again to employ anyone this year, the year after or 10 years from now. What were all those people going to do? Start writing gaming software? Seriously, put down the Murray Rothbard please.

      • 0 avatar
        eldard

        If Gee M and Crapsler were allowed to die a natural death (and they should have) Ford and the imports would pick up the slack. They’ll build more factories to cope with rising demand. And maybe some annoyed patriot like Penske would start one from scratch. Or another annoyed one would give a generous funding to Tesla or Fisker (God, I hope not).

        Basic economics. One man’s loss is another man’s gain. Take a hint from Britain and don’t bother with an industry you’re not good at and instead concentrate on what you do best. In America’s case, it’s those computer animated penguin films. lolz

      • 0 avatar
        bd2

        If GM and Chrysler had gone down the tubes, then Ford would have eventually followed after them.

        They use many of the same suppliers and those suppliers would have collapsed along with GM and Chrysler (not to mention Ford was in a precarious situation with cash on hand for only about another year and a half if the auto market hadn’t turned around).

        This would have turned the Great Recession into another depression.

      • 0 avatar
        geeber

        Ford, Toyota and Honda would never have allowed the supply chain to simply collapse. Statements given at Congressional hearings need to be taken with a grain of salt, and it helps to learn the difference between conjecture and fact.

      • 0 avatar
        wsn

        Agree with geeber. Toyota/Honda had enough cash to buy those suppliers out. Ford, being the only domestic car maker left, will be thought to expand its market share and thus would be able to obtain enough loans to buy the suppliers as well.

      • 0 avatar

        So why did both Toyota and Ford support gov’t aid to GM & Chrysler? I think the supply chain would have been seriously disrupted.

      • 0 avatar
        Rob Finfrock

        So why did both Toyota and Ford support gov’t aid to GM & Chrysler? I think the supply chain would have been seriously disrupted.

        I think those companies supported the bailout because it would have been politically unwise to voice opposition to it. Dancing on your opponents’ graves — while fun — is viewed as uncouth by some. It also helps to keep a few Useful Idiots (i.e, Congress) handy if needed.

      • 0 avatar
        highdesertcat

        getacargetacheck, the American tax payers lost their shirt and everything else in this bail out gambit. It was wrong when Bush did it. It was far worse when Obama continued it on a grander scale.

        All this bail out money wasted and we still have millions and millions of unemployed because bail outs do not work. The 99rs got 99 weeks of unemployment and most of them are still unemployed and no longer collecting. After 99 weeks of money wasted on unemployment checks these same people still stand to lose their homes, their cars and everything else they worked for. Not an effective economic strategy. No doubt you’d want them on the dole forever, right?

        The US auto industry IS already gone forever. What we have now is a conglomeration of joint ventures and niche market manufacturers with more alignments and realignments to come before the shake out of the global auto industry is complete.

        The way things are going for Toyota it would not surprise me if Ford and Toyota may jump in bed together. I look for GM to break apart into different pieces and hook up with other global manufacturers, like Chrysler is now a subdivision of Fiat. Nothing wrong with that.

        The US tax payers lost more than money here. GM the largest carmaker? It’s a sham! An illusion. We’re deluding ourselves. The tax payer money is still lost. GM’s liabilities are far greater than their assets and will remain so far into the future. But you must think that’s OK because the tax payers of America are footing the bill to keep the UAW working, right?

        What the UAW pays in taxes doesn’t even come close to the billions of dollars we have wasted on the US auto industry. There are plenty of car makers in the US who would take up the slack if GM were to go down the tubes. It’s not like we’re in dire need of automakers in the US. We’ve got plenty of them right here on our soil and they employ a bunch of Americans.

        Your perspective is based on UAW ideology, not a sound economic basis. The UAW bargained their members out of their jobs and drove their employers into financial ruin and bankruptcy and will no doubt do it again in the future.

      • 0 avatar
        bd2

        “Ford, Toyota and Honda would never have allowed the supply chain to simply collapse. Statements given at Congressional hearings need to be taken with a grain of salt, and it helps to learn the difference between conjecture and fact.”

        – And it would be wise to take statements from Faux News or MSNBC w/ a grain of salt.

        Ford had enough trouble trying to keep itself afloat and Toyota and Honda also had their own issues in the global meltdown in auto sales.

        Plus, there are suppliers that supply GM and Ford or Chrysler and Ford and not Toyota or Honda.

        In addition, we are talking about losing all the jobs that come w/ supplying 30-35% of the US auto market.

        It would take Ford, Toyota, Honda, etc. a good amount of time to expand production in order to make up for the lost production; meanwhile this would mean hundreds of thousands of additional Americans out of work (higher paying jobs than the low pay service jobs) and a severe crimp on the supply of new autos (which would lead to higher prices).

    • 0 avatar
      carbiz

      I expect this doom and gloom (mixed in with general ignorance or deliberate naivete) on Canadian blog sites, but not on an American one.
      Let’s try a different take on this age-old argument: Is America today better off with or without a television industry? When Zenith finally went down in 1999 and LG gobbled them up, so went America’s last hope for any sort of presence in the TV market. So all future patents, developments and design is being done where? Illinois? California? Yeouido-dong, Yeongdeungpo-gu, Seoul?
      In 20 or 30 years as 3D storms the market, or holography blossoms, will the technology belong to an American company, or a Chinese or a Korean one?
      When Roosevelt referred to the ‘arsenal of democracy,’ was he referring to Qingdao, Shandong or Detroit?
      Just asking….

      • 0 avatar
        eldard

        I’ve said it before and I’ll say it again, it doesn’t matter if you give away current tech. What matters is who can innovate faster. And my money’s still on Germany, Japan and Korea. China won’t be a real threat until next decade aka the Roaring 20s ;)

        And it won’t matter who holds the patents. Japan will always be the first to improve it, anyway. If it weren’t for them, we’d still be using CRTs and floppies now.

  • avatar
    imag

    Bertel, that one has to feel good. If that doesn’t say you are one of the best in the biz, I don’t know what does.

  • avatar
    84Cressida

    Don’t care. GM is still run by the sleezy, ignorant morons as before (Lt. Dan Coke Can), so they’ll likely lose it again anyway. They and VW can get into their own little contest to see who sucks more at #1.

  • avatar

    when you count 50% interest as a 100% delivery it helps. when your competition suffers massive setbacks it helps. when you sell at distressed pricing levels it helps. and when you have a loyal base of hard working employees it helps, in spite of crummy management.

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