Read the news this morning that GM has reported a 39 Billion, yes, that's a B, loss last quarter! Ouch. The weird thing is that in the same report that say that GM has also managed to regain the #1 vehicle retailer spot back from Toyota.

So, here's my thought. Does this mean that every one of them is so screwed up that they can post a loss like that and still stay in business? I don't get it.

Also, would it be safe to assume that diesel power will save all them from financial oblivion?

 

they probably lost all the money replacing all the injectors on the lb7 duramaxes

 

I'd guess a lot of fleet/rental sales probably helped them out. They need to start building cars people want. When is the last time that you heard someone saying how much they wanted to drive, let alone own, a Malibu, LaCrosse, Grand Prix, etc? I don't know anyone who enjoys driving that wants or needs their cars. Aside from the Mustang Ford isn't any better either. I've seen some stuff GM is coming out with in the near future and it will be stuff that people want and even possibly feel they need to own but they're still a minimum of 1 year away.

They can build all the diesel power plants they want but it won't help them sell a single car if they don't get off their asses and start educating the public about why diesel is the better choice. They've advertised the hell out of E85 and no one cares because the majority of the country still can't find a gas station that has it. (But the uselessness of E85 is a whole other topic.) Let's try diesel now. For instance, Cadillac is going to introduce a new TDI power plant for the european market with absolutely no plans as of right now to sell it in North America. Why not? Why put all the R&D into something and not at least offer it here? Why not advertise the benefits of diesels? They're going to have to work really hard right now to do it though too. To pay a 6 or 7 thousand dollar charge for a diesel power plant and then pay anywhere from the same to $.40 or more per gallon is a lot to ask. The fact that GM's MDI V8 gas motors are getting mid to upper 20's MPG makes the sell even tougher.

 

Dark days may be ahead. What was Fords last loss?

 

The loss is based upon the projections and past sales history not the current state of the company. BTW- GM is the largest company in the world with all the subsidiaries combined. It would amaze you at what they own.

GM is going to be pushing diesel advertising very soon. A press release about a year ago by the CEO stated that GM plans to incorporate diesel engines in 80% of it's vehicles by the year 2012.

Dont fret over diesel prices just yet. Two more refineries are in the process of being built in Baytown by the United Arab Emirats. Once completed they will help knock the price of diesel back down to well below gas. Once GM starts spiting out more diesel engines than gas that will put the nail in the coffin.

 

GM is or was the largest car company in the world but sell off Allision, ISUZU, SAAB, their shares in VW, GMAC, AC Delco and others and it still looks to be in trouble. I don't care who's math you use. It looks bleak.

But it looks bleak for them all as well.

The US (North American) car buyer is about as stupid as a pile of rocks buying the same thing they've always had, getting the same crappy designs, the same crappy technology, service issues, warranty problems and the like. We just take it where it hurts. Until "we" collectively understand the benefits of burning oil (diesel or BIO) as a continent not much is going to change.

MDI in the 20's is ok but why bother when Benz and Audio have small displacement gasser and diesel turbo's and twin turbo's that kick the crap out of small block twin cams and still get 45+ MPG. Get a diesel like my TDI and it sees 50+ MPG on a bad day. My Durango sucked the fuel down with 8 big straws and I loved driving it but hated paying for it.

Just my 2 cents.

 

GM owns a LOT more than automotive subsidies. They're not going anywhere no matter how much they loose.
They are in the process of convincing America to go diesel. Its not going to happen overnight and especially not with our EPA standing at the front line.

 

MB and Audi's mid-size sedans don't have much better EPA numbers than say a GM midsize sedan. They're all with in a couple MPG's of each other and all are in the upper 20's for highway and upper teens for city. Last time I checked you could only get a diesel MB car in the S-series. Price one lately? I don't know what you make every year but I can't afford one. And I don't believe Audi has a diesel model in NA. Audi's aren't a steal either and I can't imagine what they would get for a diesel power plant. Audi may make a decent vehicle but MB has had a ton of quality issues the last few model years. Maybe they're under control now but I know this century started out really rough for them. Either way, with incentives, you can get a loaded Impala for under 30K. Justify paying the difference, I don't see it. Don't get me wrong, GM and Ford cars have their issues, but it's easier to live with a $28K lemon than with a $60K one.

VW seems to be the only company really "doing it right" in making diesels mainstream, IMO. Last time I bothered to check you could get a diesel in a Jetta for only a couple grand more. That is pricing "effectively", IMO, and they don't have any trouble selling diesels because of it.

Why Chrysler isn't beating down everyone's door and telling them the Grand Cherokee now has a diesel is beyond me. AND it's priced very effectively when compared to their gas engines. It was the same way with the Liberty CRD. Very few people even know that the Liberty ever came with a diesel engine.

It's funny that you always hear about how terrible American car companies are but where was all the coverage about Toyota slipping in initial quality and about all of it's recalls? No one ever mentions that but the media loves to bag on the American companies every chance it gets.

GM and Ford will, eventually be fine. They'll all, eventually, be fine but they're all in trouble. Consumer demands are driving part of the industry while keeping pace with emissions laws seem to be driving the rest of it. All of the car companies are stuck in the middle trying to meet all of these at the same time. But don't get me wrong, I don't feel sorry for any of them. They all saw this stuff coming and procrastinated. They're all the same no matter what country they base themselves out of. They'll give and do only as little as they absolutely have to. Blood out of a rock, ya know. Just my $ .02.

 

Well, I guess I see it different. All vehicles this side of the 49th are $$. No matter how you slice it. If I'm paying $50,000 for a new Durango I'd rather have a Land Rover. If I'm paying $40,000 + for a new car I'd rather have a Benz, BMW, Audi, Volvo etc. for 5 to 10% more.

We have tax on everything up here and a luxury tax once it gets beyond a certain dollar figure to boot so it really doesn't matter. I like and always have liked the Corvette. I liked the older 3500 K platform 'burbans and I have always liked the souped up mustangs but I'm glad I don't need to buy a new truck any time soon because I'm not sure which one I'd pick. I think it would likely be the new 6.4L CC LWB from Ford but this is because I don't know how the 6.7L works, nor do I want a short box Megacab. If I liked auto's and I had the money (because up here they are the most pricey) the GM 3500 CC LWB Allison is nice but at nearly $75k after taxes it is a bit tough to justify.

My 2 cents but I agree, I think they are ALL in trouble to some degree.

 

OMG!!! 75K??? Good God man. Come down here and with 75K you can have one bad *** truck.