GM's liabilities exceed assets by $42 billion, losing money. Why isn't it bankrupt?

[Trendytrader]

Quote from piezoe:

Probably should be, but too big to fail, Taxpayer guaranteed loans are on the way.

GM has had a negative current ratio for quite some time. That's normally a sign that bankruptcy is headed your way. But GM, it can't happen. Why, because "What's good for GM is good for the Nation." And don't you forget that Pa(b)st. GM -- too big to fail and too incompetent to succeed. What a company!

P.S. How's Hillary doing? Heard a rumor she was going to wipe Obama cuz the polls were shifting fast, away from Obama.

No worries as FED term lending facility is being opened up to any US based company to swap their bonds for treasuries. Printing presses running overtime.

 

[Trendytrader]

Quote from Thermactor:

Actually I was thinking about Cadillac when I called GM's cars ugly. I never liked their nouveau angular styling. And I despise the new mini-SUVs that are being badge engineered to every single GM brand.

GM's blatant badge engineering and lack of creativity/individualism among the brands is hurting sales and image.


And their idea of a fuel efficient car is an Aveo or a Cobalt XFE that gets 36mpg on the highway with some engine control hacks and a steeper gear..?


They need a miracle product to save them. Like Chrysler and the minivan in the 1980s.

Problem is, they don't have it.


I hope they pull out of their slump, pull a rabbit out of their hat, something. What's bad for GM is bad for America. If GM goes under, it bodes poorly for our economy, and as an American I want our country to be strong.

I agree GM has to many "brands" of essentially the same vehicle. They need to boil down all the brands to a new general brand called "GMC" = "Toyota" and the up market brand "Cadillac = "Lexus"

 

[ProgrammerGuy]

Quote from Thermactor:

what makes you think that? de-unionizing will restore them to profitability?

it won't stop them from making ugly and crappy cars

that is a good point. The problem is, is that the cars are so damn ugly

 

[Tums]

Quote from turkeyneck:

How can you put GM and brand equity in the same sentence?

just to name a couple...

Corvette

Pickup truck
(BTW, GMC and Chev pickup combined sales exceeded Ford's. But because these identical trucks are branded separately, Ford gets to carry the title of "Best Selling Pickup truck".)


there are more brand equities than these 2 example... but that does not mean that I would ever own a GM again.

 

[bighog]

bighog


Registered: Aug 2005
Posts: 1238


06-20-08 07:36 PM

It was the future "projections" of the automakers cash flow that is the concern. A perfect example is the gaudy, overcooked pimped out new pickup that FORD just put on hold. It is called Platinum model i think. Who the hell needs a pickup truck with leather seats? Ok, ok, some redneck that won the LOTTO i guess.

Bottom line, with gas prices as they are and the rejection of gas guzzling SUV's and pick-em-up trucks for a CAR that gets better mileage is what the consumer wants. Problem is the auto companies have lost the "CAR" mkt to the foreign CARmakers. The profits from USA automakers will take a HUGE hit simply selling CARS that are not pimped out to the max with low profit margins.
They made their own bed and now they are in deep dung.

http://www.youtube.com/watch?v=-W5-ZN0l9io

 

[The Kin]

Quote from The Kin:

I just looked up GM's income and balance sheets. How the fuck is this company not bankrupt yet. They're losing billions every quarter and liabilities exceed assets by a little over $42 billion!

Who the hell would give them money? Aren't they technically bankrupt?

Looks like I'll just have to wait a few more weeks till Bankrupcy. Oil just hit a new all-time high and the fundamentals is in the shitz. Easily the worse Balance Sheet of any company in the world!