Frank’s preparing to tackle the new GM website, GMfactsandfiction.com. Meanwhile, I was amused to find a link in the right hand column sending me to an August 1 Wall Street Journal Marketwatch blog. Ostensibly, GM wanted me to read a remark by house spinmeister Tom Wilkinson’s defending The General’s honor. [Quoting yourself is like the joke about the falling American tourist trade in post-911 Paris: the waiters were reduced to insulting each other.] But I got caught up in the blog post itself, filled as it is with its own set of facts. Or perhaps we should call them inconvenient truths?
“Shares of General Motors are down 6.2% after the company reported a staggering $15 billion loss for the second quarter, as a result of declining sales, losses on leases, lots of debt, high energy prices, and just about anything else that could go wrong with a company.
Here’s a list of some numbers to put the earnings report in perspective:
- $15.471 billion: GM’s loss for the entire quarter.
- $11.68 billion: ExxonMobil’s profit for the quarter.
- $6.267 billion: The market capitalization of General Motors as of this morning, according to WSJ.com.
- $7.512 billion: The market capitalization of Clorox, which reported net income of $158 million for its most recent quarter.
- $3.6 billion. GM’s cash burn during the quarter, according to Citigroup, who said that “weak fundamentals, low visibility and inherently slow company turnarounds stress the importance of liquidity.”
- $19.356 billion. GM’s cash on hand as of the end of the quarter.
- $56.97 billion. The total stockholders’ deficit as of June 30. That’s up from $3.77 billion at the end of June 2007. And yet, people continue to try to rally the shares.
- $4.55 million. The cost of insuring $10 million in GM bonds against default for five years (not including a $500,000 annual additional cost). That’s up from $4.2 million Thursday, according to Phoenix Partners Group.
- $16.91. S&P 500 earnings per-share before including GM.
- $15.29. S&P 500 earnings per-share for the second quarter, including GM’s GAAP results. GM’s earnings reduce S&P per-share earnings by 9.5%, according to Howard Silverblatt, equity index analyst at Standard & Poor’s.
- 21.3%. GM’s U.S. auto sales market share, for the year-to-date.
- 28.8%. GM’s U.S. auto sales market share, as of the end of 1999.”
It’s called cherry-picking, RF.
In addressing quality, they note that the Malibu and Silverado won IQS awards this year. Two models out of how many? And it’s just initial quality.
In addressing demand for their products, they list those whose sales are up. Most gains are in the 10-30 percent range, but the Buick Enclave is up 156 percent. Of course, it wasn’t available for the first five months or so of last year…
Yoy were the chosen nation, and gods were benevolent to you. Until you started exercizing sloth and greed. When you thought that life can be just life of roses, when sweat can be offshored, but added value imported,when unravelling the conundrum of divine mechanics can be transfered to those that exercize muscles and brain , while devil orchestrates you with a remote control and fiat money. Now the sweatless aggregate has spawned a cancer of unprecedented size. Gm is just a tiny part of the webnet of the whole contageous net spreading its DNA of oblivion in this land. Has the cancer of GM reached main arteries already and surgery of downsizing would be impossible? Judge for yourself.
Quote from GM facts and Fiction:”GM and/or oil companies are hiding technology that could quickly and cheaply make cars and trucks more efficient”. And subsequently they have the cheek to deny this of course.
Maybe they think that everybody has forgotten by now how they sold the patent for NiMh batteries to their EXXON friends (since overtaken by Chevron) who subsequently made absolutely sure that no big NiMh batteries were available to parties that would use them in BEV’s. (Of course Toyota was welcome to them for it’s useless Prius because this car’s fuel efficiency gains are so limited that it would have a negligible effect on fuel sales).
They go on to claim that sitting on technology is impossible in a competitive market. The whole NiMh experience shows of course that sitting on technology is exactly what you can do if you own the patent.
This (junta) General can lie and cheat until he is blue in the face but since everybody is online nowadays the truth is never more than a few clicks away for those who care.
Tinfoil hats!
GM Trolls!
Maybe if the auto companies have all this super secret UFO derived technology locked away, they should seriously consider using a little of it to prevent losses–or at least bankruptcy. I want one of those 100 mpg carburetors. A car that runs on water would be pretty sweet also.
Qwerty
A car that runs on water would be pretty sweet also.
Already availible!
http://uk.reuters.com/news/video?videoId=84561
Wow. I don’t know what to say to that, other than “Wow. I don’t know what to say to that.”
Amazingly, a company that lost $15 BILLION in ONE QUARTER is hiding the very technology that would catapult them to the top of the sales charts worldwide, and at the same time secure the future of the company.
The one technology that would give them a market share rivaling GM in 1960.
The one technology that would end our dependence on oil and cement GM as the savior of America.
The one technology that would drive Toyota and Honda back to Japan.
Sure. Makes perfect sense.
And after that, they’ll unveil that perpetual motion machine they’ve been testing at Milford…
Qwerty :
“Maybe if the auto companies have all this super secret UFO derived technology locked away, they should seriously consider using a little of it to prevent losses–or at least bankruptcy. ”
NiMh technology for one thing wasn’t actually invented by aliens but by a guy called Dr. Masahiko Oshitani from Yuasa Company (Wikipedia).
Maybe GM felt after the EV1 PR disaster that this patent had become something of a hot potato for them so they unloaded it to the friendly people of EXXON. It probably seemed like a good idea at the time since oil was cheap and the SUV market was booming.
GM must have estimated that BEV’s are poison for them because: EV’s require little maintenance; EV’s last long; more profit in SUV’s; once the technology is proven, legislation would force their hands; EV’s are a major appliance from a marketing point of view (lack of emotion). This is probably why even in a time that everybody and his dog in the industry is scrambling to get a BEV on line GM is still committed to a PHEV that is less likely to suffer from ailments like simplicity and durability and low maintenance.
Michael Karesh:
In addressing demand for their products, they list those whose sales are up. Most gains are in the 10-30 percent range, but the Buick Enclave is up 156 percent. Of course, it wasn’t available for the first five months or so of last year…
Not only that, all of the others they list except CTS have had massive sales to fleets in the first half of this year:
“Chevy Cobalt +10%” (38.7% of total production went to fleets)
“Pontiac G6 + 10%” (44.8% of total production went to fleets)
“Saturn Aura +12%” (22.2% of total production went to fleets)
“Pontiac Vibe +33%” (21.7% of total production went to fleets)
“Chevy Malibu +32%” (33% of total production went to fleets)
I don’t know whether those fleet numbers are up or down from the same time last year, but when they start bragging about sales they conveniently omit the fact that fleet sales are a good way to boost sales percentages while retail sales stagnate. If they truly want to try to bust that “myth”, they need to show what the RETAIL sales changes are for these models.
As much as I dislike conspiracy theories, the story of how Chevron used it’s lawyers to put the lid on the development of large scale NiMH batteries sure feeds the flames!
$19.356 billion. GM’s cash on hand as of the end of the quarter.
What percentage of that will be needed to buy the necessary part of the (probable) Delphi liquidation?
That site is amusing. They attempt to dispel everything, yet the same vehicles at the same prices are still for sale. Do they have anything that is going to sway a Civic or Camry driver?
We’ve got a Camaro(too heavy and expensive) and a Volt(not fully electric). Any other hot new products lined up or just more of the same?
I don’t see future sales increasing any on the currently offered vehicles. They just aren’t good enough.
They need to take every vehicle and make it absolutely unquestionably the best at something. Those XFE models are a good start. They need to make them even more extreme though. Right now they are very mild and subtle. Do things to them that make people stand up and take notice.
Make a list of all the best selling cars and it’s nearest GM competitor and make that vehicle be better on at least one count.
Versa and Yaris; how is the Aveo better?
The Cobalt is better then what car?
What other vehicles does GM have and what makes them superior to other cars on the market? The vehicles will sell themselves based on their merits.
I’d buy an electric Aveo or Cobalt Monday if they were available. Instead Mitsubishi is going to beat them to market(by a few years) with a mass produced EV.
What makes most cars pieces of crap? High maintenance and unreliable engines and transmissions and poor fuel mileage.
How to rectify all that? Stop putting high maintenance gas burning motors and conventional transmissions in them.
Check out the step down(single speed) gear box on this high rpm AC motor:
http://www.metricmind.com/images/mot2.jpg
Just like in the Mitsubishi MiEV. No maintenance.
With regen, the brake pads will last longer. Tires will be one of the few needed things. I’ll likely upgrade to a newer(better) EV before the pack wears out.
There’s nothing in “GMFactsAndFiction” that suggests GM intends to be supplying facts.
They did do one smart thing – seems comments won’t be supported on the articles. Comments, I guess, will have to go to FastLane.
GM sold their battery tech to Texaco who was then purchased by Chevron according to Wikipedia. Don’t think Exxon had anything to do with that debacle.
Actually I’ll be glad to see GM keep going down the same road if they like. Let the independent auto makers like Phoenix Motors or Miles Motors rise to the average consumer’s consciousness.
What expect though is for the Detroit lobbyists to try to get Congress to restrict the use or sales of EVs on some false pretense rather than trying to compete on a level playing field.
It’ll be two years before my budget can absorb the cost of a newer car. I’ll either buy an EV if they are available or I will build and EV out of my VW (Golf) Cabrio for local duty. I want to buy a GM, really do – but short of the Astra and maybe the Aura they don’t have many cars that interest me. Plenty of SUVs to choose from but I don’t want one of those. Ford has the Focus but until the hatch comes back or more Ford Europe models reach America I won’t be considering one of their products.
Don’t get me wrong – plenty of nice products offered by the big 2.5 but few that I could afford (cost to operate, purchase, depreciation) and few that I find interesting or useful (small, clever cars like the Focus hatch or the Astra 3-door.
rtz Neds to educate himself more! He apparant has not checked out the new Satun Aura and Chevy Malibu. Drive the Aura XR, you will be IMPRESSED! These cars are a better product then Camry especially for the money. You get more standard equipment for you money, plus a 5 yr. 100,000 mile powertrain warranty. Honda and Toyota don’t have nearly as good of warranty and they don’t have anything to compete with Onstar. If you check some car mags, even the biased ones they praise these cars and even made them car of the year. The Saturn Aura was voted 2007 North American car of the year by 49 automotive journalist (yes the same biased ones) beating Honda, Toyota and some other very expensive cars.They have a new small car coming out to replace the Cobalt. And as far as the Cmaro that car doesn’t compete with any Japanese car, it competes withDodge and Ford and has a great loyal following. Like me! The GMC Acadia and a host of other models are fantastic. They are building fantastic lineup of models if you go drive them and compare. You talk about the Aveo, not a bad little car for the money. It has a 5 star crash rating with NHTSA, how do those other tin can cars compare, you’ll be shocked. You mentioned unreliable engines and high maintainence. You know what cheduled maintainence GM cars need till 100,000 miles under normal driving conditions? Oil changes, tire rotations, and air filters, thats’s IT!Can Honda and Toyota say that? NOPE! In fact GM cars have a built in oil life moniter system that tells you when to change the oil, depending on how you drive you may go 10,000 miles before it tells you to change it. Honda and Toy do not have that. Infact if you have a Toyota and you don’t change your oil at least every 5k or less and you have an engine problem they WILL NOT back you! Thenew Ecotec GM 4 cyl. engine and the 3.6 L V6 are awesome engines! The Ecotec was intenionally designed to go an easy 300,000 miles. They are also designed to burn regular gas and can be ordered to burn clean E85. They are also putting very unconventinal 5 &6 speed autos in there cars, even the less expensive ones. Also, go drive a Saturn Astra and compare how solid it feels and how it handles compared to it’s competition, fun car!I could go on and on but, you get where I’m goin’ with this. The biggest problem with American car companies is most of the unamerican liberal press that would love to see these EVIL companies go out of business jump with joy at the oppty. to degrade (even lie)them. The fact is GM is kicking bootie with product and the best is yet THey have a 2 mode Hybrid system that has already won technology of the year and praised by numerous sources. How do I know all this? I am a very informed car nut and sold GM cars for years and had a lot of inside info. about all brands at my disposal anytime I needed it! Like in 2007 Toyota had more recalls then all Domestic companies combined!
Zarba, these batteries are not the savior of the world, what a joke! The push for hybrids and all this battery tech is a political agenda not environmental concerns. That’s the scam of it all!
To build the batteries for a Toyota Prius they have to fly them to 3 different countries and then there is polution being put into the air for construting. Talk about leaving a BIG CARBON FOOTPRINT!
Already availible!
http://uk.reuters.com/news/video?videoId=84561
Genepax is lying or at the very least misrepresenting how their car works. They are using a reactive metal as the actual fuel.
Thanks Robert Farago for bringing GM’s Facts and Fiction website to my attention. All the answers provided there are so lopsided that it makes for an entertaining read. Still, even a General that was involved in the massacre of hundreds of innocent civilian EV1’s is entitled to a defence I quess.
And I do like the option of submitting a myth of your own for GM to debunk. It even has a search function, but when I entered “EV1″it came up blank somehow…. So I’m guessing either nobody submitted a myth like: “GM terminated the EV1 project and destroyed most of them because they figured out a bit late in the game that it was bad for business” or GM just doesn’t consider such a statement to constitute a myth. Anyway, just to be sure I submitted that particular “myth”myself.
Tip: TTAC could make a special section of debunking GM’s debunking of myths.
Pretty thin website, considering the resources GM should be using to promote themselves. I do agree with them on the “conspiracy” BS, though. If GM, or anybody else, could simply double or triple mileage with readily available technology, they would do so. A Malibu rated at 50 mpg would put GM on the map for a lot of people. Most don’t take into account the laws that govern how things work when they spout such conspiracy nonsense. Conventional power plants, limited by the laws of thermodynamics and material science (can’t push the pressures too high) are typically well under 40% efficient. Why would an industry that consumes so much energy throw so much away if they didn’t have to? Same with cars. I guess the conspiracy folks will be back at Ground Zero in a week, all dressed in black talking about how 9/11 was an inside job…
“In fact GM cars have a built in oil life moniter system that tells you when to change the oil, depending on how you drive you may go 10,000 miles before it tells you to change it. Honda and Toy do not have that.”
Honda does in fact have an oil life monitoring and notification system. Not only does it tell you when oil changes are needed, but it actually calls out every item on the routine maintenance list … thus besting GM in that regard.
I can say with great certainty that the cost of maintaining our Honda Accord through it’s first 80k miles has been much less than the Oldsmobile it replaced had cost me by that same point. Well before 80k miles the Olds had leaking shock absorbers, a failed windshield wiper motor, a failed intake manifold gasket, two failed headlight assemblies (at $250 each for the part!) and over $1000 in air conditioning repairs. That was all in additional to normal wear, tear and maintenance items. The Honda during a similar period has set me back for oil changes, tires, wiper blades, brake pads and one $3 taillight bulb. Period. That Olds was the THIRD GM car we purchased brand new, and everyone of them started racking up the big buck repairs within months of going out of warranty.
As far as GM’s new engines being good for 300k miles … we shall see. Honda has established an excellent reputation for long lived 4 cylinder and V-6 engines … so good that GM uses one in the Saturn Vue :).
John, my ’92 Buick LeSabre had the same system monitors in it, even for oil. So does my ’99 Cadillac and ’06 and ’08 Pontiacs.
Said Buick never had any issues aside from normal wear and tear items. It ran flawlessly and served me well up until 300,000 miles when I sold it this past July. Even after beating on it through college and after it never failed me. My other GM vehicles have been reliable as well.
GM doesn’t us Honda’s V6 in the current VUE. They used it in a few of the older VUEs not because of it’s reliability, but because of a deal they made with Honda to exchange parts and technology. GM certainly doesn’t need to go to Honda or another company for reliable powertrains.
Once a week myself and couple of friends drive up to the local native reservation.Its all about cheap smokes and some fun with the slots.I’m a non smoker so I,m along for the ride.
We all pile into my buddys 97 Sunfire GT.The old Pontiac has 270,000 klms on the clock.The red rocket we call it.His wife drove it for 5yrs and then his teenage son.Its suffered 2 good accidents
the rocket ate a clutch a tranny,and a zilloin brake rotors.We think the young lad practised power shifting and racing.
The A/C gave up the cruise is history and the interior trim ain’t pretty.A couple of times we have pulled over to add brake fluid to the clutch slave.But she has never stranded us, and the heater works.
In short, my buddy figures that the rocket doesn’t owe him a nickel.
Yeah yeah! us plant rats have heard it all.GM
builds crap.Well the red rocket is a rolling fact folks.Japanese cars never break down,no matter what they have suffered.That boys and girls is a myth!
As they say, Mikey, “a GM will run badly longer than anything else will run period.”
As for the topic at hand, what exactly is the point of the post? All of us that read the Death Watch series are aware of numbers such as these, and they are only tangentially related to the GM Fact and Fiction website from which the idea of the post in a roundabout way originated. Is it saying that the GMF&F (heh) site is lying by not mentioning the numbers? Is it saying that the numbers stated here somehow rebuke the entirety of the GMF&F site?
The only news I got from this news post is that an editorial about GMF&F shall appear soon. I await it excitedly.
Those figures are mind boggling. It sure puts my financial problems into perspective
$3.6 billion. GM’s cash burn during the quarter, according to Citigroup, who said that “weak fundamentals, low visibility and inherently slow company turnarounds stress the importance of liquidity.”
And this analysis is coming from a financial outfit that paid out a total of $1 billion in compensation to a former CEO, and whose pre-tax losses for the past three quarters has been $30 billion, and whose losses are fixin’ to start accelerating as their REAGU (real estate always goes up) lending continues to come home to roost. I give C (NYSE) three years tops for their own shareholder’s equity (currently about $136 billion) to go negative, and a candidate for tens of billions in bailout $$$.
Takes one (liquidity challenged outfit) to know one.
@TriShield: GM certainly doesn’t need to go to Honda or another company for reliable powertrains.
No they don’t. But it would certainly be nice if they learned to make an Ecotec 4 that was a smooth as comparable engines from Honda or Toyota. In fairness, I rented an Outlook recently and the new 3.6 l V6 is a superb engine and quite competitive with other high quality V6’s.
bowtieboy: To build the batteries for a Toyota Prius they have to fly them to 3 different countries and then there is polution being put into the air for construting. Talk about leaving a BIG CARBON FOOTPRINT!
Yep and the car gets ~50 mpg it’s whole life. Meanwhile other vehicles are on the road getting 20 mpg and they have parts manufactured in China, flown to Mexico and the end product shipped all over the world. We need to beat up on them too.
Hey let’s pass a law that says a vehicle can only be sold for a 500 mile radius of the factory and the vehicle has to built with parts manufactured within 1000 mile radius of the factory…
Ain’t gonna happen…
Seriously this is what we get for dreams of a global economy. Overseas labor, vast transportation infrastructure, transport fuel up, price up.
Who was it that voted for NAFTA? Let’s see – Bush like it, Fox (Mexico) liked it, Mulroney (Canada) liked it, and Clinton (Bill) liked it. The republicans liked it more than the Dems liked it.
Maybe a hundred years from now NAFTA will make life better for everyone whichever side of the border they live on but the current working folks around here are certainly hurting for it.
http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
edgett : No they don’t. But it would certainly be nice if they learned to make an Ecotec 4 that was a smooth as comparable engines from Honda or Toyota
Didn’t somebody say on this site recently that the reason Saturn’s Ecotec was rough was due to the lack of a harmonic balancer?
Seems like a poor place to cut costs. Sell the completed car for $20 more to a happier customer.