: Look How Much GM Loses on Each Vehicle!



Ralph
06-11-05, 12:09 AM
Check out these stats showing how much GM LOSES per vehicle they produce. Scary. Maybe good design which is easy to build (as can be seen by Honda/Toyota) is a major part of profitibility.


Net Revenues per Vehicle/Profits per Vehicle

Net Revenue Profits

Toyota $26,514 $1488

DCX $24,105 $ 186

Nissan $23,707 $1603

Honda $23,202 $1250

Ford $22,553 $ 620

GM $20,659 (-$2311)



Labour Hours per Vehicle

1998 2004 % change 2003 to 2004

DCX 46.81 35.85 4.2

Ford 36.76 36.98 4.2

GM 46.52 34.33 2.5

H 31.90 32.02 0.2

N 30.70 29.43 (-4.8)

T 30.25 27.90 5.5


"One of the new study's most revealing statistics had nothing to do with productivity. Toyota generated the highest revenues per vehicle last year, an average $26,514, once you stripped out incentives and other discounts. By comparison, General Motors' net was a meager $20,659 per vehicle.

"That's an alarming number," stressed Harbour, "all the more alarming because it hasn't changed much in seven years."

Compounding matters, Japanese profits per vehicle were significantly higher than Detroit, ranging from $1250 at Honda to $1603 for Nissan. Ford had the highest figure among the Big Three, at $620, while GM lost $2311 per vehicle in 2004."



http://www.thecarconnection.com/Industry/Industry_News/Toyota_GM_Tops_in_05_Harbour_Report.S175.A8722.htm l

majax
06-11-05, 03:32 AM
That's to bad, I wonder if assembly or materials cost more. They also averaged throughout the company. They could make 1000 on every Cadillac and loose 3000 on every Saturn.

Spyder
06-11-05, 04:15 AM
How are they still in business if they're losing a couple of grand per vehicle? They make millions of cars/trucks/suvs/etc... that's thousands of millions of dollars...I think those numbers are fishy...

Ralph
06-11-05, 04:30 AM
How are they still in business if they're losing a couple of grand per vehicle?

Simple, debt. They borrow money. They sell corporate bonds. They also make some money back on more expensive vehicles like Escalades, etc.

Elvis
06-11-05, 07:45 AM
I think it's mostly healthcare for retirees. Their productivity has dramatically improved in the past six years.

DCX had a similar improvement, but remember in 1998 they were separate. I'm sure those are Daimler numbers improving the average. GM didn't buy or merge with anybody, they improved those numbers on their own. I'm not ready to write them off yet. I'm sure Kerkorian knows what he's doing in the long run. He'll get the last laugh.

Ralph
06-11-05, 02:04 PM
I think it's mostly healthcare for retirees.

You got that right!

davesdeville
06-12-05, 08:02 AM
How are they still in business if they're losing a couple of grand per vehicle?

Four letters: GMAC

Playdrv4me
06-12-05, 11:48 AM
They might find creative ways to bring those numbers up in the short term, but make no mistake about it. No company can remain healthy by accepting a culture of loss on each product they sell despite what their other divisions may or may not be doing.

Ralph
06-12-05, 11:11 PM
Remember, "cutting or killing" is not the answer either boys. :shhh: :)

We don't need GM taken over by the Chinese when they are downsized, small, and weak.

davesdeville
06-13-05, 04:11 AM
They might find creative ways to bring those numbers up in the short term, but make no mistake about it. No company can remain healthy by accepting a culture of loss on each product they sell despite what their other divisions may or may not be doing.

People will be financing new cars as long as cars exist, it's FAR from a short term fix. GMAC has really been what's keeping GM afloat and will probably continue to be for the forseeable future.

Playdrv4me
06-13-05, 01:20 PM
People will be financing new cars as long as cars exist, it's FAR from a short term fix. GMAC has really been what's keeping GM afloat and will probably continue to be for the forseeable future.

You cant run a multi-billion dollar business expecting that only a single arm of your entire corporation will be what keeps you alive. Investors DO NOT like to see this and if more companies operated this way the stock market would have been a disaster along time ago. Not only that, GMAC's business is affected by interest rate fluctuations as much if not moreso than the construction and home industry. If GMAC is all thats keeping GM alive, it would only take a year of interest rate hikes to bring the entire company to its knees. That is a dangerous way to do business. I work in the banking industry and I can tell you this business is NOT friendly to change.

Its a car company... its supposed to make cars that people want and profit from its vehicles whenever possible. Plain and simple.