https://finance.yahoo.com/news/gm-more-5-billion-charges-113518512.html
DETROIT (Reuters) -General Motors (GM) told shareholders on Wednesday that it would record two non-cash charges totaling more than $5 billion on its joint venture in China, one related to the restructuring of the operation and another reflecting its reduced value.
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Bonus? What bonus?
"We are very likely going to see cuts either tomorrow (12/06) or Friday the thirteenth. GM likes to put on their steel toe boots to kick us in the who-ha right around Christmas.
5 days ago by Anonymous | 5 reactions (+5/-0)
Post ID: @2mya+1vOh7bjb"
OP was correct... ki-ling Cruise after they burned $10B while failing to commercialize it.
"the charge is not recurring, not that they don't have to pay it"
From the article:
All five points can be summed up this way: GM's presence in China is an unprofitable liability which will bring down the price per stock share and earnings per share.
GM has relied on profits from China for many years. This is a VERY BAD development.
One more thing:
GM has historically reacted to losing money by cutting labor in America.
The "your bonus is safe" mantra will not age well and we are very likely going to see cuts either tomorrow (12/06) or Friday the thirteenth. GM likes to put on their steel toe boots to kick us in the who-ha right around Christmas.
Adjusted results have non-recurring items removed to indicate a company's ongoing operational performance. They are saying the charge is not recurring, not that they don't have to pay it.
"reducing net income but not adjusted results"
"Your bonus will be just fine"
Tell your spouse, "I blew my paycheck at the casino but after I adjusted results, we can still get groceries at the food bank" and see how that goes.
Seems like outsourcing to China was a costly mistake.
Short term cost savings weren't worth it in the long run.
Read the entire article. Further down it states:
“Most of the charges will be recorded in the company's fourth-quarter earnings, reducing net income but not adjusted results, a GM spokesperson said.”
Your bonus will be just fine
Hmmmm… wonder why they didn’t do this before the stock buy back and recent parachute packing. Curious…
Losses in China should not be a write off in America!
Things need to change.
When the tariffs hit hard, no one should pity GM.
Seems like some sneaky way to siphon money to reduce their taxes and enrich themselves even more