Auto & Truck Sales and GM
The ninth straight monthly decline with Toyota -12%; Honda -1.6%; only Nissan +8% bucked the trend...
Ford, last week reported a $8.7 billion loss; today July sales -14.9%; Auto +7.8%; Trucks -21%; SUV's -54%
Ford marketing chief Jim Farley: "We expect the second half of 2008 will be more challenging than the first half as economic and credit conditions weaken."
GM, reported a $15.5 billion loss vs $851 million profit;
North American sales -20%; global sales -5%; auto -12%; auto & light truck sales -26%; factory output cut -27%;
The Nattering One muses... on 03/16/05 we said:
GM has become the posterboy for: executive and board level malfeasance, unrealistic executive compensation,
abandonment of the U.S. manufacturing base, weaseling on labor contract negotiations,
and finally, adhering to the "your only as good as your last quarter" mentality which fosters a total lack of innovation and foresight.
And here on 11/21/05 we posted odds of a pre BK lifespan of 36 months, which runs out end of November 2008
Interesting Codicil: Q2 cash burn rate -$3.6 billion; cash reserve $21 billion;
credit line $5 billion. Do the math, 2nd half operations will cost $14 billion,
So, GM have enough cash & credit to last till mid 2009 and they need to cut another $15 billion in costs to survive until the end of 2009.
With over $1 Trillion in GM debt default swaps in the market, the effects of a GM BK would be immense.
Ford, last week reported a $8.7 billion loss; today July sales -14.9%; Auto +7.8%; Trucks -21%; SUV's -54%
Ford marketing chief Jim Farley: "We expect the second half of 2008 will be more challenging than the first half as economic and credit conditions weaken."
GM, reported a $15.5 billion loss vs $851 million profit;
North American sales -20%; global sales -5%; auto -12%; auto & light truck sales -26%; factory output cut -27%;
The Nattering One muses... on 03/16/05 we said:
GM has become the posterboy for: executive and board level malfeasance, unrealistic executive compensation,
abandonment of the U.S. manufacturing base, weaseling on labor contract negotiations,
and finally, adhering to the "your only as good as your last quarter" mentality which fosters a total lack of innovation and foresight.
And here on 11/21/05 we posted odds of a pre BK lifespan of 36 months, which runs out end of November 2008
Interesting Codicil: Q2 cash burn rate -$3.6 billion; cash reserve $21 billion;
credit line $5 billion. Do the math, 2nd half operations will cost $14 billion,
So, GM have enough cash & credit to last till mid 2009 and they need to cut another $15 billion in costs to survive until the end of 2009.
With over $1 Trillion in GM debt default swaps in the market, the effects of a GM BK would be immense.
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