GM profit misses estimates; losses in Europe deepen

Comments (3)
Rhino1 wrote:

So, S&P goes up because it could have been worse today?

Feb 14, 2013 9:15am EST  --  Report as abuse
Dragos111 wrote:

So, a few years ago GM was facing bankruptcy. Obama steps in and “saves” the company. They screwed bond holders and gave the company to the unions. Now GM is again having problems.

The underlying problem a few years ago was that GM was uncompetitive in its industry. Its cost of labor was so high it could not price its cars properly. It should have gone into bankruptcy. If it had done that, it could have found relief from the union contracts. It could have cut its costs. It would have come out leaner and better able to compete.

Now it is still uncompetitive. The benefits of the cash infusion from a few years ago are wearing off. It will again find itself facing bankruptcy. The problem, though, will likely be worse the second time around. All Obama did was kick the can farther down the road. GM still needs to be “fixed” by a bankruptcy court. Until that happens, it is looking at ultimate failure.

Feb 14, 2013 9:47am EST  --  Report as abuse
Dragos111 wrote:

So, a few years ago GM was facing bankruptcy. Obama steps in and “saves” the company. They screwed bond holders and gave the company to the unions. Now GM is again having problems.

The underlying problem a few years ago was that GM was uncompetitive in its industry. Its cost of labor was so high it could not price its cars properly. It should have gone into bankruptcy. If it had done that, it could have found relief from the union contracts. It could have cut its costs. It would have come out leaner and better able to compete.

Now it is still uncompetitive. The benefits of the cash infusion from a few years ago are wearing off. It will again find itself facing bankruptcy. The problem, though, will likely be worse the second time around. All Obama did was kick the can farther down the road. GM still needs to be “fixed” by a bankruptcy court. Until that happens, it is looking at ultimate failure.

Feb 14, 2013 9:47am EST  --  Report as abuse
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