GM just announced record sales and record profits.
Why do they need to borrow money?
22 replies (most recent on top)
Or they're having cash flow problems because of the strike.
GM secured a $6 billion line of credit.
Sounds like they are digging in for a long fight.
I wonder if the UAW can outlast $6 billion.
Tick tock?
Then there’s this:
“Shares of General Motors sank Thursday after The Wall Street Journal reported that the National Highway Traffic Safety Administration wants some 20 million GM (ticker: GM) vehicles recalled to replace potentially faulty air bag inflaters.”
Stock price: $30.31. Ouch. Later, haters.
@6eie+1oQD7otW
I would love a good debate. Where do you want to start? Pick an idea and let’s do it.
GM also doesn't go bankrupt if there are no wasteful stock buybacks.
Spending money on them is actually part of the problem.
Long Post Guy thinks he's an expert on more subjects than he really is.
GM doesn't go bankrupt if investors sell the stock. Executive compensation won't be as lucrative.
For those who are ignorant of business fundamentals:
"The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment."
*https://www.investopedia.com/terms/n/net_margin.asp
Here's another source for General Motor's Net Profit Margin for those attacking the other source (losers with nothing to offer go right for the source...):
GM's Net Profit Margin for 2023: 5.78%-5.99%
https://www.macrotrends.net/stocks/charts/GM/general-motors/net-profit-margin
GM has a fiduciary responsibility to shareholders to release all of their income data after the forth quarter. So you will see Gm report the Net Profit Margin sometime around February 1, as they have done in these examples:
https://investor.gm.com/news-releases/news-release-details/gm-reports-2021-full-year-and-fourth-quarter-results-including
https://investor.gm.com/news-releases/news-release-details/gm-releases-2022-fourth-quarter-and-full-year-results-and-2023
For those having a really hard time with the concept I previously outlined:
To give the UAW more, the money would need to come from the NET PROFIT MARGIN, which typically is paid to shareholders. All money before that is paid out for materials, payroll, etc. If you don't pay the shareholders, they sell the stock and then GM goes bankrupt again. It's not rocket science, but don't let that disrupt your Marxist fantasies.
Vehiclefreak =one handed typists.
"Net profit margin" seems like a strange way to phrase it.
Like costs were added to their calculations that aren't usually added.
If vehiclefreak says it it must be true
5% profit on a 50k or 100k sale ain't bad.
That's why realtors are ok with 2 or 3 percent.
What percentage is executive compensation?
The 2015-2020 net profit margins for the most prominent car manufacturers are as follows:
General Motors Company 4.66%
Ford Motor Co. 3.04%
Fiat Chrysler Automobiles NV 2.06%
Forget about what percentage of the car is labor cost. What you need to focus on is NET PROFIT. Less than 5% net profit at GM and far less at the others... so how much of that does the UAW want as their "fair share"? And who will buy the stock when there's no dividend? And how long will the company last without people buying stocks?
Some of you are old enough to remember when the Big 3 made cars at a loss because of labor costs. It lead to a famous bankruptcy. Now that you know that there's only 4.66% meat on the bones, think about the repercussions of the "fair share".
Please down-vote this post because it involves critical thinking.
Source:
https://vehiclefreak.com/how-much-does-it-cost-to-make-a-car-manufacturing-cost-breakdown/
Labor is only 5% of the cost of a car.
Even if labor costs doubled they wouldn't have to raise the sale price unless they just wanted to use it as an excuse to increase profits.
Look for more "record profit" announcements even after the strike ends.
Aren't those "fields and fields" of unsold vehicles there because they're missing parts due to overseas supply chain problems?
They can't be completed and sold without those parts.
The company actually needed this strike to shrink their inventory. There are fields and fields full of unsold vehicles in and around Detroit. People are not buying vehicles right now and they sure as heck won’t be after GM raises their prices after they eventually cave to the UAW demands.
GM management is fair at best, but there is a silver lining! Many took the buyout, some remaining are not too bad, a little growth in the character side and some shedding of arrogant so called leaders will do GM well over the next cycle.
Is it really UAW leadership or just Mary and SLT being thinned skinned as they are used to being told yes and people doing what they want them to do?
Just looks like both sides are waiting for the other to blink.
I remember growing up with a dad in the UAW. We always had the most presents at Christmas and lived in the biggest house on the street but poor dad never got his fair share due to the billionaire class he was at war with.
As a gesture to the UAW, GM should replace Mary with a Mexican CEO, Consuelo Guadalupe Hidalgo. Even she makes 400x the average Mexican hourly worker pay, that is still only $1M USD.
It'll keep expanding every couple of weeks.