Just three years after the automaker drove into government-run bankruptcy, requiring a massive taxpayer-funded bailout to keep it in business, General Motors is setting its sights on making over $10 billion a year, according to a report in The Wall Street Journal.
The newspaper reports that GM is already on track to achieve that goal, citing company sources that the Journal said have seen the company’s 2011 fourth-quarter results, which are due to be reported next week. GM is set to report net income of about $8 billion, its highest ever, and nearly twice the prior year’s $4.7 billion figure, the newspaper said.
Growth in China and strong profits in North America, where GM has shed billions of dollars of costs and has been able to command higher prices, account for the improved quarterly income, the Journal reported.
On top of this quarterly gain, GM also aims to raise its profit margin -- the portion of revenue left after paying expenses -- from the current 6 percent level to 10 percent over the next several years, Daniel Ammann, chief financial officer, told the Journal. It would be the highest profit margin in the auto industry.
In 2009, losing billions of dollars and facing extinction, GM was forced to take a government bailout of about $50 billion and go through a government-run bankruptcy.
Millions of unrecoverable taxpayer money down the drain along with a top heavy company. Hey will, bankruptcy doesn't mean a company is gone forever. It means laws are followed and property rights are protected. None of that was followed in GM's case.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Yep , 15 billion to his UAW buddies that we the taxpayers will never get back. Yeah real great deal. Just like all his Solyndra's. This pres is a total piece of doodoo.
Location: land of the Lilliputians, In the state of insanity
Posts: 24,185
Quote:
Originally Posted by archer 2
Yep , 15 billion to his UAW buddies that we the taxpayers will never get back. Yeah real great deal. Just like all his Solyndra's. This pres is a total piece of doodoo.
Yep, but Will doesnt understand simple math.
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kaafir mushrik
Unintended consequences and God have one thing in common: Liberals don’t believe in either of them.
I'm not sure how you're connecting your title and the referenced news article.
I've partially quoted and linked an article that's from May 2011 (I couldn't find anything more recent). The article highlights part of the problem in that only a minor portion of the money used for the bailout/TARP, etc. was in the form of a repayable loan. The rest of the money infused into GM was in exchange for stock or ownership in the company.
IMHO, The question of whether the government is paid back in full would be if the government recouped its' full costs from buying and selling the stock and the interest the government (that would be us) paid to China or whoever for the increased deficit spending.
People buying GM products (I own a GMC truck) doesn't necessarily mean they agree or don't agree with the bailout--it just means we like the vehicles.
Quote:
"A lot of Americans didn't agree with giving GM a second chance," Whitacre said in an ad. "Quite frankly, I can respect that. We want to make this a company all Americans can be proud of again. That's why I'm here to announce we have repaid our government loan, in full, with interest, five years ahead of the original schedule. But there's still more to do. Our goal is to exceed every expectation you've set for us."
But as with Marchionne, Whitacre didn't tell the full story. The Obama administration -- through the Troubled Asset Relief Program (TARP) -- committed approximately $52.4 billion to help right GM.
Only a fraction of that, $6.7 billion, was in the form of loans. Most of the government's GM investment was converted to an ownership stake in the New GM, the company that emerged from bankruptcy: $2.1 billion in preferred stock; and 60.8 percent of the company's common equity. The jury is still out on how much return the government will get on that investment.
Whitacre could accurately claim that GM has retired its $6.7 billion in loans from the U.S. government. But with the government still owning 60 percent of the company and the prospects slim for getting all its money back, we thought that was highly misleading. And so we rated Whitacre's statement Half True.
like the vehicles.... hmm.... I always loved American cars. I got a Chevy Colorado, Preceeded by two jeeps and a Ford. On the Chevy, the dash lights go out....sometimes. The light will dim...occasionally then go out...then come back on in a day or two. The ABS lights will come on after the system faults....then they 'get better' in an hour or a day. My REGULAR brakes get the idiot light...then THEY get better too. Seems like an electrical problem....NOW. Do I still love American cars ? I can't say I know.
They say Toyotas and Hondas and such are much better than they used to be...and I have an aversion to NOT buy American...I was looking at Jeep but they're Chrysler... I'm thinking Volvo X90 or the Audi SUV with Quattro. When I run down to florida, I'm done with cars....gonna be a harley sportster for my trips to the fishing pier, and maybe keep the SUV I buy up here... But I don't know what I have a bigger problem with...Obama's car companies and the support payoffs to the unions, or the foreign imports. The jury's still out...
I know this is off topic but I had to laugh at the Chevy commercial last night trying to claim chevy's are the longest lasting truck on the market. Im close to 400k on my Expedition and it still drives like the day I bought it.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
I know this is off topic but I had to laugh at the Chevy commercial last night trying to claim chevy's are the longest lasting truck on the market. Im close to 400k on my Expedition and it still drives like the day I bought it.
I loved my Grand Cherokee....dumped it after about 198,000 miles.
I drove that car hard...hunted off-road 2 weeks at a time up in Maine's Moosehead lake region. Tough truck, and all gussied up too ! The "Jeep Cherokee" is not made anymore or else I'd buy that in a heartbeat. Best 4wd I ever owned for 132,000 miles...I think that little burro can climb trees. Im leery about American cars I think.
That 400k on the expedition is very impressive...
America Glad Obama not listening to you guys
