GM share price up 40% in the last quarter 2nd best improver of all. UAW would stop any more Holden product into U.S.
quote:
Originally posted by cousincletus:
^^^No point in even trying to make sense with the likes of ScottB. He'll realize when he loses his job to the foreign competition and then he can pop his zits in the unemployment line.
I hate to say this but, that is exactly the reason GM WILL go out because while they are worried about all that I will have realized that toyota and honda makes a much better vehicle and they just lost there buisness from me and anyone who cares to listen to me and so on and so on. The domestics are making better vehicles only in compairison to other domestic's of the past but still not in the same league as the imports. Just totally stupid reasoning for ******* away loyal customers and that is the bottom line that they are losing sad.quote:
Originally posted by Vortec_4300:
As an accountant who audits public companies, I can tell you that ALL companies are run by numbers.quote:
Originally posted by 1999nick:
GM has been run by the bean counters too long. Car guys should run car companies.
Car guys should make the appropriate business case for new models, but in the end the accounting (not the accountants) will trigger decisions that will reflect favorably on Wall Street for that particular reporting period.
With pressure to show earnings which reflect or exceed analysts expectations, if I can save $5 per unit on a model that sells 100K units annually, that's $500K that directly hits my bottom line. Additionally, if it is cheaper for me to create a reserve to honor warranty obligations for the repair of an intake gasket, rather than incur the fixed costs of re-engineering that gasket, re-tooling the production line, and switching suppliers, then I would elect that course of action.
Yeah - awesome numbers.quote:
Originally posted by sprintman:
GM share price up 40% in the last quarter 2nd best improver of all. UAW would stop any more Holden product into U.S.
...and as a guy that checks financial reports daily, for accuracy and standardization, I agree with you 100%. Great posts.quote:
As an accountant who audits public companies, I can tell you that ALL companies are run by numbers
http://news.yahoo.com/s/bw/20060623/bs_bw/b3991047quote:
The higher quality is not percieved it is a fact. The american companies have failed. A few years ago nissan was in worse shape than ford or chevy is in now. They released products that the public actually wanted and have built themselves up.
quote:
Also, let's not forget that the last time Nissan tried to do so much, it stumbled. In 2003 it opened a factory in Canton, Miss., to build large pickups, SUVs, and minivans that it had never made before. Ghosn and his team swore building newly minted vehicles in a virgin plant with an upstart workforce and a new chain of suppliers was doable. But quality problems plagued the trucks and the minivan. Consumer Reports rates Nissan's large SUVs among the worst cars on the market for reliability.
Interesting. Are they building that much better cars elsewhere? Are American buyers better informed and more demanding?quote:
Originally posted by speedtc:
snip....
Will chevy and ford do it here? If they do fold, one or the other, it will only be in north america. Ford and GM are both powerhouses overseas.
Yikes. And this short-sighted thinking is EXACTLY why folks are leaving a car company.quote:
Originally posted by Vortec_4300:
[snip]
Additionally, if it is cheaper for me to create a reserve to honor warranty obligations for the repair of an intake gasket, rather than incur the fixed costs of re-engineering that gasket, re-tooling the production line, and switching suppliers, then I would elect that course of action.
Capitalism trumps patriotism.quote:
Originally posted by speedtc:
I find it funny that alot of people will stick up for ford and chevy to the end by bashing the foreign cars with the "patriotism" angle. The same american automakers have been turning a blind eye to the american worker by outsourcing jobs to mexico, canada, etc.
You've certainly described how many "manufacturing" companies work today. I think you'll find though that it wasn't always the case. There was a time when companies that built things actually worried more about their products and turning a profit than their stock prices. It was assumed that if they built products and sold them at a profit that their stock would do well, pay dividends, etc. Somewhere along the way a lot of "manufacturers" forgot who they were and what they do.quote:
Originally posted by Vortec_4300:
The Street cares about one thing - growth.
Growth is reflected by earnings.
Earnings are predicted, and trading volumes on the Street between the time the predictions are made and the earnings are released are based on those predictions.
When a company meets or exceeds the predicted earnings, then things are OK.
When a company misses its earnings forecast, then things get nasty. The stock price takes a hit, as institutional investors sell their holdings. Management's compensation is invariably tied to earnings and the corresponding stock price, so the CEO, COO, and CFO all take home smaller bonus packages for that period.
Therefore, management will do whatever it takes to hit their projected earnings.
The founder of MCI, Bernie Ebbers, would hold meetings with his senior accounting and financial managers to beat them over the head about earnings. As far as he was concerned, the only thing that counted for anything at MCI was meeting Wall Street's expectations FOR FINANCIAL PERFORMANCE. If that meant selling good services and a quality product, fine. If that meant spending money for corporate retreats, team-building efforts, and new-age motivational seminars, that was fine too. If that meant committing fraud, releasing false financial data, and cheating investors with fake information, he didn't want to know about it, but that's what he wanted them to do.
Unfortunately for Bernie, he chose the latter. This former Sunday school teacher, who created MCI from a diagram that he drew on a napkin ion an Atlanta diner one evening several decades ago, is serving several decades in prison. For fraud.
quote:
US automakers' June sales sag
DETROIT (Reuters) - U.S. sales fell for all three big American automakers in June, led by a 26 percent drop at General Motors Corp. (GM), while Japan's Toyota Motor Corp. surged.
----------
Ford's June sales dropped 7 percent and DaimlerChrysler's plunged 13 percent, underscoring the pressure on Detroit automakers at the start of a summer season they are counting on to clear an unsold inventory of 2006 models.
--------------
But Nissan has struggled in the U.S market this year, and its June sales tumbled by 19 percent.
Nissan's difficulties have included a disruptive move in its headquarters to Nashville, Tennessee, production cuts and an embarrassing recall of some Altima and Sentra sedans due to evidence of engine fires.
Rival Honda Motor Co. , which is building a new U.S. assembly plant to keep up with demand, posted flat overall sales in June. Strong sales for its fuel-efficient Fit and Civic models were offset by declines in truck sales and for its Acura luxury line.