GM lost $15.5 billion last quarter alone

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08-02-2008, 06:19 AM

#16

Eric Bryant

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Join Date: Aug 2001

Location: Michigan's left coast

Posts: 2,405

Quote:

Originally Posted by graham

So they lost 3.3bil buying out employees to get on the cost level of the transplants?

Yes - but then as sales continue to drop, the cost structure again gets lop-sided, and then more buy-outs will be required. It's a death spiral.

08-02-2008, 06:35 AM

#17

anasazi

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Join Date: Jul 2001

Location: Milton, FL

Posts: 3,604

is chapter 11 starting to seem like the end result of this spiral? would GM continue to honor warranties after such a filing?

serious question as i do intend to purchase a new car within the next month or two

08-02-2008, 09:59 AM

#18

GTOJack

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Join Date: Oct 2006

Location: SE MI

Posts: 976

The good old days are gone when GMNA would lose $1 billion and GMAC would make $2 billion to cover it. Now GMAC loses $2.48 billion in a quarter. GM owns 49% of GMAC.