DiamondDave2005

I'm sure all the buyers who bought cars in the past few years just love the hit to their resale/trade-in value.

b0mbrman

Yeah...but how much more?

steven975

yep, they got screwed. I'm sure quite a few are ticked at GM and won't buy another due to this.

Also, while they sold a lot of cars, they made very very little profit. They probably lost money on a very large percentage.

This is not a "resurgence", this is a FIRE SALE.

steve c

Incorrect, at least according to the Wall Street Journal article I read.

duff0000

Is'int GM still in big trouble $$$$ wise? Is there stock still classified as junk stocks

ksdaoski

stock does not become junk

the term junk refers to their bond rating. or essentially, indicates their ability to obtain and pay off loans/debts

and junk does not really mean, "hey this is garbage"

steven975

I think "junk" refers to their credit rating, as determined by Standard & Poors.

I believe anything under "BB" is "junk"


Even B comanies regularly pay their debts. Junk bonds are not really all that high in risk, actually. They are not as secure as a AAA company, but still not as risky as the name "junk" implies.

"Incorrect, at least according to the Wall Street Journal article I read. "

Hmm. GM sells cars at higher prices and takes a big loss. GM lowers prices even more and makes money. does not compute.

I think the employee discount has given them a surge in revenue, with costs being booked in prior quarters. I'm not sure how GM does book their costs and revenues, but I have a hard time believing that they make money now with their cars priced $1-3K lower than last month.

Palmateer

DETROIT (AP) - General Motors Corp. (GM) said Wednesday it lost $286 million in the second quarter, dragged down by a $1 billion-plus loss at its North American automotive operations, and it missed Wall Street's earnings forecast by a large margin.

blastr17

Every time GM sells a car with the employee discount they are still making money, just less of it then if they sold it for its regular price.. you think they are selling these cars at a loss...a 60k escalade costs maybe 200$ more to make then the base Yukon which is list what 45K so if they sell the escalade for 50K they still make money...Gm has been raping the country for years with old technoloogy dressed up in new clothes...it cost them dick to make these cars, if they actually priced them right they would sell...exactly why these heavy, heavy "discounts" work

OCMusicJunkie

I don't know if the average consumer is smart enough to realize GM screwed their resale value. Those who do realize this are probably the ones already in imports.

This was, indeed, a fire sale. Even if they keep this up, sales are going to level off.

There is a certain percentage of the population who will buy ANYTHING if it's a "better deal", regardless of quality. There is also a good percentage of the population who realizes this deal is a scam. I could walk into a Honda, Toyota, or Nissan dealership and get just as close to invoice as the GM employee discount... it just takes a little negotiation. The informed buyer would never be swayed from a better Japanese car because of this gimmick.