AFSCME 3357-HOF'S BLOG

GM reduces Quarterly Loss to $1.2 Billion
Starts Year-end "Blowout" sale

GM announced that its 3rd quarter loss was down to $1.2 billion, due in part to Cash for Clunker sales. Fritz Henderson outlined past results and future plans. Judging from the picture of Fritz Henderson here from Canada's Globeandmail.com, GM's loss this year compares to a loss of $4.2 billion in last year's 3rd quarter. If you remember the heady days of November 2008, that was when GM officially announced to the world that it was running out of cash and begged the government for a bailout.

According to GM, next quarter will result in much worse cash flow. GM will have to pay billions in connection with Delphi's exit from bankruptcy, billions to the German government for the cancelled Opel sale, and will actually spend a billion on real restructuring.

GM also announced that it was beginning to pay off its debt to the United States' and Canadian governments. This would be a big deal except The company is just shifting money from the government-funded cash reserve trust fund to the governments to pay off some of the debt obligation. In other words, we're being paid back with our own money. I think Bernie Madoff gave them the idea.

As to the immediate future sales forecast. Henderson said that markets are turning upwards elsewhere in the worlds, but are running flat in the U.S. He estimates total light vehicle sales in the USA at around 11 million to 12 million next year. That compares to 13.2 million in 2008 and 16 million in 2007. Judging from the picture from The Globe and Mail, new Henderson marketing plan will involve marrying Prince Herbert off to Princess Lucky to get HUGE TRACKS OF LAND.

For more info on GM's financial position, check out this article at autonews.com.