Government Motors

Sort by newest Sort by date
RealMoneyIssues said:
..

Is buying a Volt or GM stock a better investment?
Click to expand...

It depends, really. The Volt is doing very well, thank you.


Sales of the Volt in it's first year have been far ahead of the sales of the first year of the Toyota Prius.

Volt=sales.jpg
But the news isn't the Volt.
No one expects to make huge profits off the Volt- that's not what it's for.

The news is that GM has increased it's North American Production Sales by over 17% this year.

That's a healthy rise. And it means profit for the company.

North-american.jpg

Thankfully the company was not dissolved, which is what many (R)'s were calling for in 2009.
Instead, more than one hundred thousand U.S. employees still have jobs, and more than 2.5 million cars were made in North America by the various GM divisions.
 
James48843 said:
Thankfully the company was not dissolved, which is what many (R)'s were calling for in 2009.
Instead, more than one hundred thousand U.S. employees still have jobs, and more than 2.5 million cars were made in North America by the various GM divisions.
Click to expand...

Wow, you have WAY too much time on your hands...

Yes, I would have been fine with GM, and all the other companies who received government money, going bankrupt... sorry, they screwed up and should have paid for it.

As it is, we paid for it. How much did the USG actually get back from GM? Oh, and who actually owns GM? The stock holders? Who is the majority holder?
 
Globally, GM sold more than 9 million cars and trucks, resuming it's place as the top auto producer in the world.

http://investor.gm.com/news-article.jsp?id=/content/Pages/news/us/en/2012/Jan/0119_chevysales.html

[h=2]Chevrolet Achieves Best-Ever Global Sales in 2011[/h] [h=3]Thu, Jan 19 2012[/h] DETROIT – Chevrolet sold 4.76 million vehicles around the world in 2011, setting a global sales record and driving General Motors Co. (NYSE: GM) global sales to more than 9 million vehicles, a 7.6 percent gain compared with 2010.


GM gained four-tenths of a point of market share to 11.9 percent of the global vehicle industry. Sales were up in all four reporting regions – North America, South America, Europe and International Operations – as GM sold a total of 9,025,942 vehicles compared with 8,385,484 in 2010.

The United States led the way for Chevrolet with total vehicle sales of 1,775,812, up more than 13 percent from 2010. China posted record sales of 595,068, up 9.5 percent from the previous year. Other markets that posted significant year-over-year increases include Vietnam (79 percent), Russia (49 percent), Turkey (30 percent) and Germany (21 percent).


“ Chevrolet’s impressive growth in both established and developing markets is the result of a strong new product lineup that meets the diverse needs of consumers around the world,” said GM Chairman and CEO Dan Akerson. “In addition to Chevrolet’s record-setting sales, the entire lineup of GM vehicles is meeting customer needs for fuel-efficient cars and work vehicles as well as unmatched luxury.”


Chevrolet is building its global presence by delivering cars like the Cruze, Sonic (Aveo) and Spark, the all-new midsize global Malibu, and crossovers and trucks like the Orlando and Colorado that are designed for the varied driving conditions and customer preferences around the world.


The Chevrolet Cruze compact sedan led the brand with global sales of more than 670,000 in 2011, making it the best-selling Chevrolet nameplate around the world with more than 1.13 million sold since its launch in 2009. In the United States, Chevrolet was the best selling passenger car brand in 2011, thanks in large part to the success of the Cruze.


More than 15 markets experienced record Chevrolet sales in 2011 with the largest year-over-year increases in Peru (81 percent), Vietnam (79 percent), Thailand (57 percent), South Africa (50 percent) and Israel (46 percent).

The top 10 Chevrolet sales markets in 2011 were:

[TABLE="align: center"]
[TR]
[TD] Market
[/TD]
[TD] Total 2011 Sales
[/TD]
[/TR]
[TR]
[TD]United States
[/TD]
[TD]1,775,812
[/TD]
[/TR]
[TR]
[TD]Brazil
[/TD]
[TD]632,201
[/TD]
[/TR]
[TR]
[TD]China
[/TD]
[TD]595,068
[/TD]
[/TR]
[TR]
[TD]Russia
[/TD]
[TD]173,485
[/TD]
[/TR]
[TR]
[TD]Mexico
[/TD]
[TD]162,461
[/TD]
[/TR]
[TR]
[TD]Canada
[/TD]
[TD]150,540
[/TD]
[/TR]
[TR]
[TD]Argentina
[/TD]
[TD]133,491
[/TD]
[/TR]
[TR]
[TD]Uzbekistan
[/TD]
[TD]121,584
[/TD]
[/TR]
[TR]
[TD]India
[/TD]
[TD]111,056
[/TD]
[/TR]
[TR]
[TD]Colombia
[/TD]
[TD]105,783
[/TD]
[/TR]
[/TABLE]

“Without doubt the new Chevrolet portfolio has been a catalyst for our success around the world,” said Tim Lee, president of GM International Operations. “The launch of the Chevrolet brand in South Korea along with tremendous growth in China and across the rest of our international operations is proof that Chevrolet is becoming a first choice for customers around the globe.”


As Chevrolet enters its second century, it continues to become a more global brand, with more than 60 percent of its sales outside the U.S. market.
“In 2012, we will continue to expand our range with even more great vehicles as we pursue further growth in our key markets,” Lee said.
On a corporate basis, GM’s two largest markets in 2011 were China, where GM and its joint venture partners increased sales 8.3 percent year over year to 2,547,203 vehicles, and the United States, where GM sold 2,503,820 vehicles, up 13.0 percent compared with 2010. GM is the market leader in both countries.


General Motors Global Sales Summary



[TABLE="align: center"]
[TR]
[TD="width: 103"] [/TD]
[TD="width: 62"]
Units​
2011​
[/TD]
[TD="width: 62"]
Units​
2010​
[/TD]
[TD="width: 84"]
% Change​
[/TD]
[TD="width: 18"] [/TD]
[TD="width: 96"]
% of Industry​
2011​
[/TD]
[TD="width: 96"]
% of Industry​
2010​
[/TD]
[TD="width: 90"]
Point Change​
[/TD]
[/TR]
[TR]
[TD="width: 103"]North America
[/TD]
[TD="width: 62"]
2,924,140​
[/TD]
[TD="width: 62"]
2,625,411​
[/TD]
[TD="width: 84"]
11.4​
[/TD]
[TD="width: 18"] [/TD]
[TD="width: 96"]
18.4​
[/TD]
[TD="width: 96"]
18.2​
[/TD]
[TD="width: 90"]
0.2​
[/TD]
[/TR]
[TR]
[TD="width: 103"]Europe
[/TD]
[TD="width: 62"]
1,735,335​
[/TD]
[TD="width: 62"]
1,662,963​
[/TD]
[TD="width: 84"]
4.4​
[/TD]
[TD="width: 18"] [/TD]
[TD="width: 96"]
8.8​
[/TD]
[TD="width: 96"]
8.8​
[/TD]
[TD="width: 90"]
0.0​
[/TD]
[/TR]
[TR]
[TD="width: 103"]South America
[/TD]
[TD="width: 62"]
1,064,631​
[/TD]
[TD="width: 62"]
1,024,960​
[/TD]
[TD="width: 84"]
3.9​
[/TD]
[TD="width: 18"] [/TD]
[TD="width: 96"]
18.8​
[/TD]
[TD="width: 96"]
19.9​
[/TD]
[TD="width: 90"]
(1.1)​
[/TD]
[/TR]
[TR]
[TD="width: 103"]International Operations
[/TD]
[TD="width: 62"]
3,301,836​
[/TD]
[TD="width: 62"]
3,072,150​
[/TD]
[TD="width: 84"]
7.5​
[/TD]
[TD="width: 18"] [/TD]
[TD="width: 96"]
9.5​
[/TD]
[TD="width: 96"]
8.9​
[/TD]
[TD="width: 90"]
0.6​
[/TD]
[/TR]
[TR]
[TD="width: 103"]Total Global
[/TD]
[TD="width: 62"]
9,025,942​
[/TD]
[TD="width: 62"]
8,385,484​
[/TD]
[TD="width: 84"]
7.6​
[/TD]
[TD="width: 18"] [/TD]
[TD="width: 96"]
11.9​
[/TD]
[TD="width: 96"]
11.5​
[/TD]
[TD="width: 90"]
0.4​
[/TD]
[/TR]
[/TABLE]

GM North America = United States, Canada, Mexico and other North American markets
GM in Europe = Western, Central and Eastern Europe plus Russia
GM International Operations = Asia-Pacific, North Africa, Sub-Saharan Africa and the Middle East
Note: Iran, North Korea, Syria and Sudan are excluded from sales volume and market share calculations
###​
Click to expand...

GM is profitable, and has announced a dividend to it's U.S. Government preferred stock shareholders of $0.59
a share in March.
 
RealMoneyIssues said:
...

As it is, we paid for it.
How much did the USG actually get back from GM?
Oh, and who actually owns GM?
The stock holders?
Who is the majority holder?
Click to expand...

GM paid back all of the money it was loaned.

The U.S. government has a 27% stake in the company right now, and the UAW retiree medical plan, and the Canadian govenment both are large stock holders.

union-holder=gm.jpg

Other major stock holders are investment firms and mutual funds:

top-holders.jpg


Mutual funds hold a significant portion of the shares too.

top=mutual-fund-holders-GM.jpg
 
As I said- the purpose of building and selling the volt today isn't to make huge profits.

The purpose is to develop the technology, and bring down the price, of the new technology of battery powered electric cars.

And introduce the public into next-generation vehicles at the leading edge of technology.

It puts GM in a leadership position to bring the cars of 2015, and 2020, and 2030 into focus.

It's to give GM a technological edge in the next technologies.

Which is exactly what GM is doing, and why it's a good idea to help GM along in the Volt.

Here you can enjoy a video about the success of the production of the Volt:
http://video.foxnews.com/v/4392165/building-the-chevy-volt/
 
RealMoneyIssues said:
If the USG was paid back all it loaned, why does the USG still have a 27% stake in the company? That doesn't make sense.
Click to expand...

Yes, it does. The stock was purchased by the USG to indicate a long-term relationship, long enough to allow GM to recover, transition with new models, and
become profitable again. You can't do everything at once.

Now the cash which was originally requested in order to be working capital has been paid back to the USG, and the debt remaining is held in the form of preferred shares. The USG is selling those preferred shares when it makes sense to- when the overall stock price rises enough to make it worthwhile.

At the moment, GM is making a profit. In 2011 it made about $3 a share. In 2012 it should do considerably better than that. It's current P/E ratio is showing as 5. Please let me know if you can find another major corporation, with sales and earnings growing at double-digits, that has a P/E of just 5. Id love to learn about that company.
 
James48843 said:
Yes, it does. The stock was purchased by the USG to indicate a long-term relationship, long enough to allow GM to recover, transition with new models, and
become profitable again. You can't do everything at once.

Now the cash which was originally requested in order to be working capital has been paid back to the USG, and the debt remaining is held in the form of preferred shares. The USG is selling those preferred shares when it makes sense to- when the overall stock price rises enough to make it worthwhile.

At the moment, GM is making a profit. In 2011 it made about $3 a share. In 2012 it should do considerably better than that. It's current P/E ratio is showing as 5. Please let me know if you can find another major corporation, with sales and earnings growing at double-digits, that has a P/E of just 5. Id love to learn about that company.
Click to expand...

They paid off the bail out, with other bail out funds. That's like using a credit card to pay off another credit card. The debt is still there.

I hope GM pays back ALL of the bail out loans and buys the government held stock back soon. The government should not have a stake in a private company like this.
 
Viva La Migra said:
They paid off the bail out, with other bail out funds. That's like using a credit card to pay off another credit card. The debt is still there.

I hope GM pays back ALL of the bail out loans and buys the government held stock back soon. The government should not have a stake in a private company like this.
Click to expand...

That is very old and obsolete information from April of 2010.

In December of 2010, the new GM bought back an additional $2.1 billion worth of stock held by the U.S. treasury. http://www.thetruthaboutcars.com/2010/12/gm-buys-2-1b-of-governments-equity/
 
:confused:

White House ups expected Obama auto bailout losses to $23.6B

Published: Thursday, November 17, 2011, 10:45 AM Updated: Thursday, November 17, 2011, 11:49 AM

By Michael Wayland | MLive.comMLive.com


The U.S. government expects to lose more than $9 billion more than previously expected from its $85 billion auto industry bailout, according to reports.
Nov. 14, the Detroit News: “In its monthly report to Congress, the Treasury Department now says it expects to lose $23.6 billion, up from its previous estimate of $14.33 billion.
"The Treasury now pegs the cost of the bailout of GM, Chrysler Group LLC and the auto finance companies at $79.6 billion. It no longer includes $5 billion it set aside to guarantee payments to auto suppliers in 2009.”
​
Click to expand...
http://www.mlive.com/auto/index.ssf/2011/11/white_house_ups_expected_losse.html
 
Officials said that figure is down from the 60 percent the Treasury Department originally estimated the government would lose following its $80 billion bailout of Chrysler Group LLC and General Motors Co. in 2009.

The report comes a week after Chrysler repaid its remaining debt of $5.9 billion in U.S. loans and a $1.7 billion loan from the Canadian government.

Earlier in the year, GM announced that it had repaid a little more than half of the $50 billion it received in federal aid.
Both companies were far ahead of their scheduled repayments.

U.S. Treasury Secretary Timothy Geithner, who toured a Detroit Chrysler plant in May, said the government “will recover much more than most predicted, and far sooner."
Click to expand...

So yes, it's 60% BETTER than the losses originally thought to be, AND the auto makers have been repaying the debt much sooner than originally expected.

Is it perfect? No. But it's better than is was, and all the US automakers are doing much, much better than originally thought.
 
You must log in or register to reply here.

Similar threads

J
When to withdraw (public safety retiree)
Replies
13
Views
335
nasa1974
nasa1974
tsptalk
  • Article Article
Does 10% ring the bell?
Replies
1
Views
217
JTH
JTH
tsptalk
  • Article Article
Stocks tumble to start the week
Replies
2
Views
136
tsptalk
tsptalk
tsptalk
  • Article Article
When traders become buy and holders
Replies
1
Views
219
JTH
JTH
tsptalk
  • Article Article
TSP Talk - The historically bearish week gets off to a good start
Replies
0
Views
226
tsptalk
tsptalk
Back
Top