GM has announced its “fresh-start” post-bankruptcy accounting results, and between July and December of last year, the bailed-out automaker lost $4.3b [press release here, full numbers here, in PDF format]. The loss comes despite $57.5b in global revenue, and $1b in “net cash provided by operating activities.” According to GM’s release:
The $4.3 billion net loss includes the pre-tax impact of a $2.6 billion settlement loss related to the UAW retiree medical plan and a $1.3 billion foreign currency re-measurement loss.
Of course, you have to dig into the numbers to find the bad news, like the $56.4b in “cost of sales,” or the $700m interest cost, or the 48 percent North American capacity utilization in 2009, or the 16.3 percent US car market share. Which is why we’ve included the consolidated statement of operations, consolidated balance sheets and more, for your no-download-necessary perusal, after the jump.
It would be impossible to blame Detroit’s decades-long decline on a single factor, but if one were to make a list, defined pension obligations to workers would be somewhere very near the top. Thanks in large part to the unionization of America’s auto industry, Detroit has groaned under the weight of crushing pension obligations since time immemorial. And, according to a new report by the Goveernment Accountability Office [full report in PDF format available here], last year’s bailout of GM and Chrysler has not eliminated the existential threat that these obligations pose to the industry. In fact, the taxpayer’s “investment” in GM and Chrysler appears only to have exposed the public to even an greater risk of catastrophic pension plan failure.
A committee of the California General Assembly last month began consideration of legislation that would make minor changes in the way red light cameras are used in the state. State Senator Joe Simitian (D-Palo Alto) introduced a bill that he believes will increase the fairness in the administration of automated citations. Simitian is a supporter of photo ticketing who nevertheless believes the existing system suffers from significant flaws.
The logic behind the Lincoln MKZ is clear enough: if Toyota can get away with making a Lexus out of a Camry, why can’t Ford do the same with a Fusion? The ES 350 is arguably convincing as a Lexus (I’d argue pro, if not with much vigor, while there’s no shortage of people who’d […]
Have you been secretly lusting for a Hummer? Here is your last chance. GM is definitely shutting Hummer down. The remaining inventory of 2,200 Hummers will go on a big fire sale. (Read More…)
So today, Renault, Daimler, and Nissan did what we said they would do and announced a three-way tie-up. Which is good, because we are running out of inappropriate pictures. The marriage goes far beyond the exchange of symbolical stock holdings. (Read More…)
When the all-electric Nissan Leaf will be available in Japan in December, buyers will be faced with a tough decision: Should I buy a Nissan Leaf for $40,000, and deal with range anxiety, or should I go with the $26,000 gasoline equivalent?
To which Nissan will answer: “The Leaf, of course. It will save you huge amounts of money.” How much? Are you sitting down? (Read More…)
Lighten up, Toyota. You are not alone. Today, Nissan recalled 25,024 cars in Japan because some of their accelerator pedals have caught the stickyness sickness, and may not want to come back to idle once you take the foot off the gas. (Read More…)
Have you ever seen a junkie on withdrawal? Not a pretty sight. This is what the German car market looks like. Taken off Abwrackprämien-money, cold turkey has got Germany on the run. According to just released data of the German Kraftfahrtbundesamt, March 2010 new car registrations in Germany are 26.6 percent below March 2009. (Read More…)
Don’t you just hate it when a band or stand up comedian you like is doing a show in your area but the second tickets go on sale, they’ve sold out? Then, if you’re really desperate, you enter the world of the ticket tout, where you could pay exorbitant prices for tickets which might not be genuine. Then, if that fails, you fall back on the “Oh, I’ll wait till it comes out on CD/DVD.” train of thought. Then, when you do get it, you’ll always listen/watch it with a sense of emptiness, knowing you missed out on that live performance. Are you feeling depressed now? Well, think how the people of Europe are feeling. At least those who yearn for a certain Ford Focus. (Read More…)
Last evening, U.S. Transportation Secretary Ray LaHood declared he’d be seeking the maximum penalty from Toyota. That’s $16.4m, because “they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.” That’s the largest civil penalty the U.S. Department of Transportation has ever sought. According to Reuters, “previously, the largest fine was $1 million against General Motors Co for failing to promptly recall windshield wipers in 2002-2003 model vehicles.” One would think Toyota can pay that out of petty cash. But the matter has Toyota concerned. Plaintiff lawyers are rubbing their hands. (Read More…)
After reading the tealeaves and other more reliable indicators, it looks like Renault, Nissan, and Daimler will announce their happy three-way partnership and cross-shareholdings on Wednesday. (Read More…)
Even as blogs assume a larger role in the media landscape, TTAC remains a small-scale labor of love. Recently we’ve become a family affair as well, with Niedermeyers elder and younger occupying the Managing Editor and Editor-in-Chief positions respectively. As a family, there come times when even the opportunity of a lifetime must take a momentary back seat to the obligations of family. Paul and I are in the Baltimore area, visiting with far-flung members of the Niedermeyer clan, many of whom I have not seen in the better part of a decade. And though for the next few days, family must come first, we remain as dedicated as ever to TTAC. Or, more specifically to you, our readers. Though cars are our passion, your collective wisdom, individual reflections, deep insights and often brutal dedication to the truth is what truly inspires us to man our keyboards every day in the pursuit of automotive truth-telling. Though there may be some interruptions (including a move to permanent headquarters later this week), as long as you remain hungry for the truth it will be our privilege and honor to dedicate our days to providing you with the latest news, commentary, analysis and reflections on the world of cars. Thank you all for your readership, support, criticism, praise and passion.
[We owe a special thanks to our fantastic Overseas Editor Bertel Schmitt, for manning the ramparts in our absence]
Diesel clatter in a BMW is like watching Bullit to the tunes of Beethoven’s Fifth Symphony. In other words, distasteful and illegal in 48 states. And yet, driving BMW’s new X1 is a surprisingly John Deere-like experience. Is this a BMW or the ultimate agricultural machine? Maybe this sort of confusion is the X1’s worst […]
Recent Comments