Government Motors Profits Fall 41% in Second Quarter
Posted by Jim Hoft on Thursday, August 2, 2012, 6:46 AM
Barack Motors Tanks–
Government Motors saw profits fall 41% in the second quarter.
The Guardian reported:
America’s largest car firm made $1.5bn in the second quarter of 2012, with European division reporting operating loss of $361m.
General Motors’ profits fell 41% in the second quarter as troubles in Europe undercut strong sales in North America.
America’s largest automaker made $1.5bn in the second quarter of 2012, compared with $2.5bn for the same period last year. Revenue fell to $37.6bn from $39.4bn in the second quarter of 2011. The results exceeded analysts’ estimates, but further underlined Europe’s drag on the US economy.
“Our results in North America were solid, but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson. “Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”
GM’s European division reported an operating loss of $361m, compared with an operating profit of $102m a year ago. GM is attempting to restructure the unit and recently replaced several of its top executives in Europe. The company is planning to close at least one plant in Europe by 2016, but Dan Ammann, GM’s chief financial officer, said there were no immediate plans to announce more job cuts or factory closings in Europe.
In North America, GM reported an operating profit of $1.97bn, which compares to a profit of $2.25bn for the same period a year earlier. The company posted a loss of $19m in South America during the second quarter, and made a profit of $557m in its international division, primarily in China.
While GM’s North America sales remain strong there are signs that the slowdown in the US economy is taking its toll. On Wednesday, GM and Ford announced that sales had slipped in July; GM deliveries fell 6.4% and Ford 3.8%, according to statements. Chrysler increased deliveries by 13%.
GM’s fortunes have recovered dramatically since its emergence from bankruptcy in 2009. The firm said it sold 2.39m cars during the quarter, compared with 2.32m a year ago. GM had $32.6bn in cash reserves and other liquid assets at the end of the quarter.
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snap boy commented:
Obama tooting his horn about the success of any business is the kiss of death.
J-Ho commented:
I love the Guardian’s headline: “GM profits slip 41%” – that is certainly not a “slip”. That’s a full-on Avalanche, a plunge, a nose-dive, or meteoric. And, it was fully predictable. GO GOVERNMENT!!!!!!
shibumi commented:
One of my VERY liberal co-workers bought a huge hunk of the GM IPO. Every time I see something about GM’s stock prices go down, I wonder if he remembers how I cautioned against this investment.
Patty commented:
“I received a letter from General Motors. They were suspending my credit line. We had 30-some employees that were out of work,” he says in the spot.
Romney has argued the bailout was not the best solution to right the then-struggling auto industry, and has instead argued that a “managed bankruptcy” process would have been preferable. That is what ultimately happened, he has said.
Romney’s campaign did not say where the ad would air nor how much would be behind the spot.
Obama’s campaign has also aired advertisements centered around the bailout, including one in which an autoworker explains how the bailout helped him.
“Obama stuck his neck out for us, the auto industry. He wasn’t gonna let it just die, and I’m driving in this morning because of that, because of him,” Brian Slagle of Ohio says.
Romney’s campaign also on Wednesday released a web video hammering Obama over unemployment.
The video cites the unemployment rate, job losses, and household income under Obama’s tenure, and says, “Americans need a change. We need a new president.”
http://politicalticker.blogs.cnn.com/2012/08/01/romney-ohio-ad-hits-obama-over-auto-bailout/
Blacque Jacques Shellacque commented:
♫ Oh, it’s that magical Obie Touch… ♫
dba...vagabond trader commented:
Guess all the dealerships are full to the brim with all the channeling GM has been doing, so naturally the sales figures now reflect the true picture.
forest commented:
GM will be bankrupt within 5 years.
J. Knight commented:
GM is selling most of their cars in the US by making subprime loans to borrowers with credit scores under 500. How did that work out in the housing market a few years ago? Not very well. We will be facing another GM crisis soon. There will be no bailout this time.
mg4us commented:
Obama knows nothing about running a business. . oops. .Obama DOES know how to run a business into the ground.
Guess he drove GM into a big hole. . .
Just like he lowered the USA triple A rating. . .
Time to take away the keys!
Blacque Jacques Shellacque commented:
There will be no bailout this time.
Never underestimate the desire of the Republican Party to be liked, regardless of how many times their efforts to that end fail to produce the desired results.
OCDick commented:
I guess all the gubmint fleet sales have stopped. SHOCKA!!!
bg commented:
++
OT..
August 2, 2012
With Most Of Europe Still On Its Back,
Sweden Tries Policies That Actually Work
[That’s right, the European nation famously stereotyped for having aggressive taxation to fund an omnipresent state has actually decided that in response to the Eurozone crisis and the continued effects of the global economic downturn, or “Great Recession”, that it’s time to ease up on taxes and reduce the size of government. While Sweden is not technically in the Eurozone, as it does not use the Euro as currency, it has been drawn into the financial mess of the Eurozone by sheer proximity. Unemployment in 2011 was north of 7.5 percent and GDP growth was anemic at .4 percent projected for 2012.]
==
Patty commented:
Obama Tries to Run Over Auto Industry
Desperate to find a bright spot in Democrats’ failed economic agenda, President Obama has been claiming that he “rescue[d] this [auto] industry from a crisis.
PRESIDENT OBAMA GOES ON PUBLICITY BLITZ FOR THE AUTO BAILOUT: “But we decided to do more than rescue this industry from a crisis. We decided to help it retool for a new age, and that’s what we’re doing all across the country – we’re making sure America can out-build, out-innovate, and out-compete the rest of the world.” (“Remarks of President Obama,” The White House, 6/4/2011)
AND “TOUTS AUTO INDUSTRY RECOVERY.” (Mark Guarino, “Obama Touts Auto Industry Recovery While GOP Asks ‘What Jobs?’,” The Christian Science Monitor, 6/4/2011)
But the very industry Obama credits himself with reviving is now launching an ad campaign against Obama’s own policies. New regulations are coming out of the administration that automakers claim would “threaten [their] progress” and impose an “electric vehicle mandate” that would hurt consumers and increase car prices by up to $6,000.[...........]
Sadly, these types of job-destroying regulations are all too frequent from an administration that villainizes job creators as a matter of habit. If Democrats are as concerned about job creation as they claim, why won’t they abandon their job-destroying policies?:
“EPA CHIEF STANDS FIRM” AS JOB-DESTROYING NEW REGULATIONS THAT WILL HIT “EVERY CORNER OF THE ECONOMY” LOOM. (John M. Broder, “EPA Chief Stands Firm as Tough Rules Loom,” The New York Times, 7/6/2011)
EPA TO “STICK TO ITS GUNS” AND CONTINUE ITS JOB-DESTROYING REGULATORY ONSLAUGHT: “Nine top business and industry officials walked into EPA headquarters Friday afternoon to tell agency chief Lisa Jackson exactly what they think of her plans to tighten the federal ozone standard. But they left the meeting convinced that EPA planned to stick to its guns and are now taking their case to a higher power: The White House. They say the stricter ozone standards would hurt both industry and President Barack Obama’s chances for reelection.” (Robin Bravender, “Industry: EPA Hurts Obama in 2012,” Politico, 7/15/2011)[...]
http://www.texasgopvote.com/regions/texas/obama-tries-run-over-auto-industry-003099
For heavens sake, Obama must be stopped, he is destroying American INGENUITY
kato commented:
Sweden is looking good now because they made some reforms years ago when they were one of the first socialist utopias to hit the skids.
But keep in mind it’s already too late for Saab, now out of business, and Volvo, now owned by the Chinese.
Patty commented:
Obama just can’t believe, what he is doing to our Nation. Stubborn or more than that. Marxist, green president, whatever he is, he will be defeated. And how, because no matter how thick a skull Obama has, it will be evidently clear to him in November HE WAS OUT OF HIS ELEMENT AND OUT OF HIS MIND. And Romney will reign President and Not King like Obama seems to believe he is.
Patty commented:
Obama has given other nation everything including the KITCHEN SINK, FLOOR, CABINETS, AND APPLIANCES.
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