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GM ‘Making Progress’ With $1.2B Loss

From a true believing Associated Press:

General Motors Corp. President and CEO Fritz Henderson listens to a question while talking with reporters after a news conference at company headquarters in Detroit, Monday, Nov. 16, 2009.

GM reports $1.2B loss, says it shows progress

By Tom Krisher And Dee-ann Durbin, AP Auto Writers

DETROIT – General Motors Co. says it lost $1.2 billion from the time it left bankruptcy protection through Sept. 30, far better than it has reported in previous quarters and a sign that the auto giant is starting to turn around its business.

The company also says it will begin repaying $6.7 billion in U.S. government loans with a $1.2 billion payment in December. It could pay off the full amount by 2010, five years ahead of schedule, but the money will come from funds loaned by the government.

GM said its improved performance was fueled by new products including the Chevrolet Camaro muscle car, and the Chevrolet Equinox and GMC Terrain midsize crossover vehicles. The company’s top sellers through October were the Chevrolet Silverado pickup truck and Impala full-size car.

The better showing also reflected lower debt payments. The automaker paid $250 million in interest for the latest period, far lower than in previous quarters when the company was weighed down by a huge debt of almost $95 billion that has since been cut by more than 80 percent

The company cautioned that the earnings numbers mean little because they don’t comply with U.S. accounting standards and cover only the part of the quarter after GM left Chapter 11 bankruptcy protection on July 10

Its third-quarter revenue totaled $26.4 billion, also an improvement over the first quarter when it saw revenue drop nearly 50 percent from the same period in 2008 to $22.4 billion. Revenue was aided by sales boosts in July and August from the U.S. government’s Cash for Clunkers rebates

GM lost $78 billion from 2006 through the first quarter of this year. The gargantuan losses and debt eventually choked the company to the point where it could no longer operate without government help.

GM entered bankruptcy protection with roughly $94.7 billion in debt. It emerged with $17 billion, including the $6.7 billion owed to the U.S. government. The government has given GM a total of $52 billion, including $45.3 billion in exchange for a 61 percent equity stake in the company.

Young said the government placed $16.4 billion of GM’s loan money into a contingency fund in case sales worsened or other problems cropped up. Now, GM doesn’t need the contingency money and can repay it to the government, he said

So even with tax dollar squandering ‘cash for clunkers’ in effect, General Motors still lost $1.28 billion dollars in 83 days? And this is supposed to be good news?

Meanwhile:

The company also says it will begin repaying $6.7 billion in U.S. government loans with a $1.2 billion payment in December. It could pay off the full amount by 2010, five years ahead of schedule, but the money will come from funds loaned by the government.

What? They are paying back government loans with more government loans?

Also note that we are told GM’s financial improvement is due to “new products” like Chevrolet Camaro muscle car and ‘Terrain midsize crossover vehicles.’ And that their top sellers are Chevrolet Silverado pickup truck and Impala full-size car.

Where is the new GM? The ‘green’ GM?

Didn’t Obama bailout GM so he could force them into making environmentally friendly cars no one would buy?

This article was posted by Steve on Monday, November 16th, 2009. Comments are currently closed.

7 Responses to “GM ‘Making Progress’ With $1.2B Loss”

  1. MinnesotaRush says:

    “DETROIT – General Motors Co. says it lost $1.2 billion from the time it left bankruptcy protection through Sept. 30, far better than it has reported in previous quarters and a sign that the auto giant is starting to turn around its business.

    The company also says it will begin repaying $6.7 billion in U.S. government loans with a $1.2 billion payment in December. It could pay off the full amount by 2010, five years ahead of schedule, but the money will come from funds loaned by the government.”

    The lunacy represented in just these first two paragraphs speaks volumes!!!

    Mark Twain is credited with saying, “Common sense isn’t all that common” and these “journalists” (???) epitomize that; as well as anybody that buys into this crap.

    If this is main stream thought .. logic .. we could be in much bigger trouble than we thought. Good grief!

  2. proreason says:

    Ain’t gubamint accounting amazing?

    Other reports indicated tha GM “omitted” 3.5 months of operations. heh heh. What’s a little fudge like that among friends.

    Oh, and also, the accounting doesn’t follow the FASB accounting rules that public companies are forced to adhere to.

    Kinda like “social security” accounting, donchaknow. Lockboxes and all that.

  3. Right of the People says:

    I keep telling you it’s the “new” math. If they lost 1.2 Billion and they owe 6.7 Billion, isn’t that 7.8 Billion? I wish I could use the same math with my bank.

  4. Chuckk says:

    No need to worry about making a profit at GM. The important thing now is to keep the union workers happy.

  5. Confucius says:

    This is similar to Obama paying down the debt with debt.

    So I have to ask. Isn’t this a Ponzi scheme?

  6. platypus says:

    Government Motors needs to be melted down and scrapped. Its officials need to be tried for treason and executed.

    The basis for treason? Helping China by causing more need to sell T-bonds.


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