More economic Good News.........GM sales up 17%

Discussion in 'Economy' started by rightwinger, Jun 2, 2010.

  1. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    GM sales up 17% on demand for new models, fleet sales - USATODAY.com

    DETROIT (AP) — Strong demand for new models and higher fleet sales lifted General Motors sales 17% in May.
    The improvement, over a dismal May of last year as GM was headed into bankruptcy protection, was a sign that automakers are benefiting from a weak but improving economy. Some consumers even shrugged off an 8% decline in the stock market to buy more cars and trucks.

    GM was the first automaker to report U.S. sales Wednesday, and the whole industry is expected to show a double-digit increase over last May, when Chrysler was in bankruptcy protection and GM was nearing it.
     
    Last edited: Jun 2, 2010
  2. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    DETROIT (AP) — Ford Motor (F) says its May sales in the United States rose 22% from a year earlier, boosted by strong demand for the F-Series pickup and new Ford Mustang.

    Ford says this is the sixth straight month that sales have increased more than 20% over the previous year, when the industry was in a severe downturn.

    Sales of Ford's Lincoln, Mercury and Volvo brands fell. Ford has sold Volvo, but the sale won't be complete until later this year.

    The Ford brand saw sales climb 28%.
     
  3. Rustbelt
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    Rustbelt Rookie

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    Too bad neither company is making the bulk of their cars here in the USA
     
  4. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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  5. Zoom-boing
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    Zoom-boing Gold Member

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  6. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    I think they do. Looks like they (we) are going to make some profit. They will not dump it all at once, but will slowly sell it back
     
  7. Modbert
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    Modbert Daydream Believer Supporting Member

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    Great news to say the least.
     
  8. Zander
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    Zander Platinum Member

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    GM borrowed $50 billion. It was structured into 3 separate areas:
    1) $30 billion in stock
    2) $13 billion in an escrow acct for operating capital (payable at 7% when tapped)
    3) $7 billion as a "loan" at 7% ( a very favorable rate considering their bonds were JUNK at that point)
    With me so far??

    They never used the money (and therefore did not pay the 7% interest on) the operating capital. It was just there, in case they needed it. Therefore the total credit extended to GM was $50 Billlion, but the total tapped was $37 billion. So, 3 months ago GM owed the US taxpayers $37 billion. Still with me?

    A few weeks ago GM announced that they had "PAID BACK THE LOAN!!!"

    Great!! Then tell me, how much does GM owe the US Taxpayers now? Remember, they started with $37 Billion.

    They still owe us $37 billion - they didn't pay back a cent. The borrowed it from the "operating capital fund". It was all just nice little game of Political Kabuki Theater for Dummies!!

    Government Motors - run by politicians, now acting like politicians.

    PS - GM recently applied for another $10 billion loan - to "upgrade" their plants. Of course these loans will be made at a lower rate of 5% (versus the 7% they now carry).
     
  9. uscitizen
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    uscitizen Senior Member

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    Where are automakers and their sales compared to say 2005 sales?
    Have they gotten back up to ground zero yet?
     
  10. The Rabbi
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    The Rabbi Diamond Member

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    A lot of GM's sales were to gov't.
    Does anyone know if they actually made money selling these cars? Among GMs mission statements I have yet to hear "being profitable". Of course without have to make interest payments to bondholders their bottom line should look good for a while. But they never fixed the main problem: high unit labor costs.
     

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