Tough North America market hurts GM (healthcare costs big issue)

[cthrumatrix]

Tough North America market hurts GM
World's biggest car maker cuts Q1, FY05 earnings view
By Michael Baron, MarketWatch
Last Update: 7:55 AM ET March 16, 2005


NEW YORK (MarketWatch) -- General Motors lowered its earnings outlook for the first quarter and full year Wednesday to reflect weak sales and production volumes in North America, a tougher pricing environment and a more car-based sales mix.

snip

GM said its prior first-quarter outlook was based on North American vehicle-production volumes 1.25 million vehicles, and that its new, lower view reflects a reduction of about 70,000 vehicles.

CFO John Devine added that the company has made good progress in reducing costs over the past several years but that the performance in North America has reinforced its need "to do much more, particularly in the area of health care."

snip

http://www.marketwatch.com/news/story.asp?guid=%7B5299C237%2DD1D5%2D4C44%2DA968%2D1A9E3EB5A9CA%7D&siteid=mktw&dist=

They are slashing thier profit forecast for 2005. They are clearly in the "cross hairs"...high costs...high gas prices (SUV's) ... this could be a nasty trend.

[primavera]

1. Naturally, they opted against hybrids

They made the strategic decision that nobody needed hybrids and would rather buy tanks which now cost $60 to fill up. Predictably, there's now a year long waiting list to buy a Prius and the big gas guzzlers are collecting dust on lots. Reap what you sew, guys.

[cthrumatrix]

2. GM Sees $1.50-Shr First-Qtr Loss on U.S. Sales Slump

GM Sees $1.50-Shr First-Qtr Loss on U.S. Sales Slump
(Update5)
March 16 (Bloomberg) -- General Motors Corp., the world's biggest automaker, said it expects to post its biggest quarterly loss since 1992 and cut its 2005 profit forecast by more than half following a slump in North American sales.

snip

`Tough Market'

The company said it still expects overall capital spending to rise about $1 billion from 2004 to $8 billion, according to the statement. The company is investing in U.S. truck plants to get ready for the next generation large trucks such as the Chevrolet Suburban SUV and GMC Sierra pickup that begin to go on sale next year.

``North America is a tough market,'' said Daniel Poole, an analyst at Cleveland, Ohio-based National City Bank. ``Their products are doing ok: no home runs but no strike outs.'' Poole says his company owns some GM shares and that he has neutral rating on the company.

The automaker's U.S. market share fell below 25 percent in the first two months of this year for the first time since August 1998, when a strike shut down much of its production. GM's market share peaked at 51 percent of the U.S. market in 1962 and the last time it had less than a quarter of the U.S. market was 1925.

sbip

http://quote.bloomberg.com/apps/news?pid=10000006&sid=a5F6gxw2_fjY&refer=home

I thought car and truck sales for 2004 were quite good....these guys are in trouble.

[anarchy1999]

4. Are these "decision makers" living on another planet? I'm speechless.

What the hell?


`Tough Market'

The company said it still expects overall capital spending to rise about $1 billion from 2004 to $8 billion, according to the statement. The company is investing in U.S. truck plants to get ready for the next generation large trucks such as the Chevrolet Suburban SUV and GMC Sierra pickup that begin to go on sale next year


What are they smoking and/or putting in their veins?

[WyLoochka]

3. Single Payor Health Insurance

would "save" GM.

How is it that the Repukes never talk about the antiquated health insurance system tied to jobs that, while somewhat acceptable in the past, offers zero solutions for now and the future, while they slam Social Security as having outlived it's time?

[Deep13]

5. Bingo!

The present system is so inefficient. My wife had to go to the E-room last week. I could not take her to the hospital that is down the street, because it is not part of our HMO. I had to drive her to the next county instead. I suppose we are fortunate to have any coverage at all, but still, how inefficient. A single health care system will always be more efficient than the bizzillions we have. Plus everyone will be covered even if a person becomes unemployed.

[ret5hd]

6. Exactly...

If GM, Ford, Chrysler, IBM, American Airlines, Southwest Airlines, etc, had stepped up to the plate for Clintons healthcare proposals, we might have a very different situation today.

[AndyTiedye]

7. In Other News, GM Sends Their Groundbreaking Electric Cars to the Crusher

Despite a group in Sweden begging to buy them, and an ongoing protest
against their destruction.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1316533

The GM folks were counting on those juicy tax breaks for Hummers to
keep people buying them, while they send the EV1's that people are
begging to buy, off to the crusher


Across town, Ford is building the Escape Hybrid SUV

http://www.fordvehicles.com/escapehybrid

[napi21]

8. Healthcare costs are hurting every company! Why aren't they

a pushing for a change? I keep hearing about all the lobbiests flooding congress with $$ to get their hopes & dreams made into law. Why haven't they been pushing for some major change to health care?

[The_Casual_Observer]

9. I suggest they simply close the whole god damned thing

and give it a rest. The earth could do nicely without another million made in Mexico suburbans.