GM Loses Almost $31 Billion In 2008, How Will It Ever Repay Federal Loans?

Ford is in just as bad a shape as everyone else. The entire industry is a mess, its just Detroit was already restructuring before the "perfect storm" hit.

One thing no one takes into account is the fact that the product lineups of GM & Ford are arguably the best they've ever been (yea the classic cars were cool, but werent safe/clean/efficient/reliable/etc). Not only are they the best theyve ever been, but theyre absolutely competitive with the competition.

Another thing... Lets say GM/F get the UAW concessions & bondholder consessions, the stimulus works (we'll see), and the economy somewhat returns to a decent level, these companies will be so lean that they will be profit machines. Provided the greenies dont make everything over 1000kg illegal.

I just pray that GM doesnt give up Opel/Vauxhall. I don't think its possible since Opel is GM, and GM is Opel (theyre completely integrated and complimentary of one another), but you never know.

Can this recession/depression be over already..... it's getting old.

— neutral (View Profile)

Posted on 2/26/2009 3:48:49 PM | reply to this comment | Votes: 3   

neutral- Ford is in much better shape than the other two according to all reports and it appear they may be gaining momentum for staying solvent.

— Agent009 (View Profile)

Posted on 2/26/2009 4:20:23 PM | reply to this comment | Votes: 3   

Agent009,

Product-wise, Ford has nothing on GM, minus the Fusion hybrid. The pickup market is amongst the fiercest in the market, although of the 3 major trucks, I would take 1-GM, 2-Dodge, 3-Ford.

GM's full-size SUVs make a mockery of Ford's.

GM's crossovers & small SUVs are neck & neck with Ford's (I like GM's MUCH better.... Acadia or Flex? come on now)

Mid-size car - Malibu vs Fusion-- right race but Malibu seems to be winning

RWD luxury - GM wins, hands down.

Small Cars - Ford & GM both have great offerings overseas, here in USA we all are going to have to wait a year until the new fiesta/focus and Chevy cruze comes out.

In any event, between Ford & GM, they are both extremely competitive with their main competition (Japan & Korea). I don't personally like Ford too much, but I'd much rather see people buying Ford than Toyota.

Financially speaking................................ (what can I say, the whole world economy is a mess)

— neutral (View Profile)

Posted on 2/26/2009 10:45:45 PM | reply to this comment | Votes: 2   

Who said they're going to repay? If they were to, they'd have borrowed from private banks at market interest.

But they haven't and that's The Discreet Charm of Socialism. You can operate under conditions which would normally force you to go bankrupt. And then, instead of failing, go all national while politicians can keep on pretending everything is fine and win next elections.

— downtoearth (View Profile)

Posted on 2/26/2009 3:48:14 PM | reply to this comment | Votes: 1   

Hahahahahaha... [breath] hahahahahaha!!!

You said repay, lol, joke's on you...

— sigmabody (View Profile)

Posted on 2/26/2009 8:10:51 PM | reply to this comment | Votes: 0   

If a GM-Chrysler merger is really being considered (to some degree), GM may not have to worry about repaying the govt. Chrysler seems to be on a much steeper downward slope despite having a bit more cash to burn.

With instigation from the US govt, GM's bailout loan may be forgiven is it agrees to merger with (or absorb) Chrysler Corp. That very complex move would relieve the General of some necessary debt is had to recently take on and help to consolidate a failing major manufacturing business, possibly get the US economy over the financial slump with more positive future outlooks.

— dumpsty (View Profile)

Posted on 2/27/2009 11:02:51 AM | reply to this comment | Votes: 1   

Bottomline: They will NEVER make enough money to cover the promises they made to the unions! And now on top of that, GM will NEVER repay the Tax Dollars it was handed as a "loan". I'm so glad my taxes went down a damn hole -- who is going to bail out the USA? Its over for them at this point. Lets just be honest and stop living in denial.

— TexLandRover (View Profile)

Posted on 2/27/2009 4:24:05 PM | reply to this comment | Votes: 0   

They never will!! At least not in the next five years. What more, they'll soon ask for more cash. If GM dumps hopeless products and other baggage and then shrinks to somewhere around 3/4 or less of its current size (including production), there may be some hope..but its still going to be a tough road ahead slugging it out with VW, Toyota and Honda. Too bad cars like the CTS, Solstice, and Sky seem to be an aberration as opposed to the norm for them.

— TheGenius (View Profile)

Posted on 2/28/2009 5:51:22 PM | reply to this comment | Votes: 1   

Also, if people want GM to pay back the loans, then people should be up in arms, calling their politicians telling them to back off with this stupid CO2 nonsense. Car companies make money on bigger, more thirsty cars. Tahoe, Silverados, Suburbans, Sequoias, LX570s, F150s, etc make money. Cobalts, Focuses, Elantras dont have anywhere near the returns that bigger cars do. Cut the damn speculators out of oil, get stability back in the markets.

45mpg means low/no profit microcars. 35mpg CAFE is enough. If the government wants the industry to survive, these whackjob regulations gotta go away.

Politicians dicating what a technical/industry sector of the economy should be doing.... in a radical manner like these people want..... talk about forcing the Big3 into financial ruin (as well as everyone else).

Considering that transportation accounts for 2-5% of all GHG on the earth (including aircraft, ships, trains & autos), these stupid CO2 rules are BS and costly BS at that.

— neutral (View Profile)

Posted on 2/28/2009 7:32:48 PM | reply to this comment | Votes: 1   

They won't. Let them FAIL

— pnsb24a (View Profile)

Posted on 3/5/2009 6:37:49 PM | reply to this comment | Votes: 1