[HeatherR]

Good news. Then maybe people will realize they were loans...

http://www.freep.com/article/2010041...oans-way-early

[Sax1031]

Very good news.

But 5.8 billion is nowhere near the amount of money the government pumped into GM.

I do think the taxpayer will get most of their money back though. Which is great news.

[8cd03gro]

Uh, didn't GM post a $4.X billion USD loss in the last quarter of 2009? How is it even possible that they could think about paying back? Sounds like publicity crap to me. They said they will "could" break even this year. How can you pay off loans when you post losses consecutively and think you MIGHT break even this year?

[ljstella]

Originally Posted by 8cd03gro

Uh, didn't GM post a $4.X billion USD loss in the last quarter of 2009? How is it even possible that they could think about paying back? Sounds like publicity crap to me. They said they will "could" break even this year. How can you pay off loans when you post losses consecutively and think you MIGHT break even this year?

Because they've got money in the bank...

[Mr. Wyndham]

Originally Posted by 8cd03gro

Uh, didn't GM post a $4.X billion USD loss in the last quarter of 2009? How is it even possible that they could think about paying back? Sounds like publicity crap to me. They said they will "could" break even this year. How can you pay off loans when you post losses consecutively and think you MIGHT break even this year?

....

For the fourth quarter, GM posted a net loss of $3.4 billion on sales of $32.3 billion, but after taking out special items associated to its restructuring, the company was about $600 million short of the break-even level, said Chris Liddell, GM's vice chairman and chief financial officer.

Not publicity crap. Much of the third quarter "loss" is part of the Chapter 11 restructuring. At the end of 09 they had almost a third amount of debt and more than double the amount of cash on hand than before the bankruptcy.

They HAVE been paying off the loans, mostly because they have been bringing in profit that they can redirect to their gov't creditors. They WILL pay off the loans, and they WILL be profitable in 2010, barring some sort of natural catastrophe that destroys the planet.

[ron10]

good news.

[brandotron]

Good to hear it!

[FenwickHockey65]

Originally Posted by 8cd03gro

Uh, didn't GM post a $4.X billion USD loss in the last quarter of 2009? How is it even possible that they could think about paying back? Sounds like publicity crap to me. They said they will "could" break even this year. How can you pay off loans when you post losses consecutively and think you MIGHT break even this year?

Break even?

Screw that. GM's going for profitability this year.

Waiting for the IPO...GM is going to make me some money...to buy one of their cars.

[8cd03gro]

Originally Posted by FenwickHockey65

Break even?

Screw that. GM's going for profitability this year.

Waiting for the IPO...GM is going to make me some money...to buy one of their cars.

They are saying they might be able to break even. Not my words, theirs.

[DGthe3]

Originally Posted by 8cd03gro

Uh, didn't GM post a $4.X billion USD loss in the last quarter of 2009? How is it even possible that they could think about paying back? Sounds like publicity crap to me. They said they will "could" break even this year. How can you pay off loans when you post losses consecutively and think you MIGHT break even this year?

Last I checked we're in the 2nd quarter of 2010 and they were doing pretty well in Q1 2010.

And look at what was happening in the latter half of 2009. Q3 sales were generally still garbage and they just went through their bankrupcty. While Q4 showed improvement, they also payed $2.6B to the UAW as part of their healthcare restructuring plan (which goes into effect this year and will save them billions each and every year), $1.2B was payed back on their loans, and $1.6B was a "foreign currency re-measurement loss." So they had $5.4B lost in big, rare expenses and a total loss of $4.3B.

But perhaps you're right. GM is just spending money they don't have as a PR stunt.

[FenwickHockey65]

Originally Posted by 8cd03gro

They are saying they might be able to break even. Not my words, theirs.

Oh really?

http://www.reuters.com/article/idUSTRE6363V820100407

GM Chief Financial Officer Chris Liddell said he was "incredibly encouraged" by the company's progress in the first quarter toward a profit in 2010 and said GM would never again find itself in the financial position it experienced before the bankruptcy.
"There is nothing that I've seen in the first quarter -- which you'll see in a month's time -- that changes my opinion that there is a good chance that we will be profitable this year," Liddell said in a conference call.

http://online.wsj.com/article/SB1000...096648592.html

"My prediction is we will be" profitable in 2010, Edward E. Whitacre Jr. told reporters at GM's Detroit headquarters, a sign of rising confidence that also sets a tough benchmark for the still-struggling car maker's employees.

[8cd03gro]

Originally Posted by Dragoneye

....



Not publicity crap. Much of the third quarter "loss" is part of the Chapter 11 restructuring. At the end of 09 they had almost a third amount of debt and more than double the amount of cash on hand than before the bankruptcy.

They HAVE been paying off the loans, mostly because they have been bringing in profit that they can redirect to their gov't creditors. They WILL pay off the loans, and they WILL be profitable in 2010, barring some sort of natural catastrophe that destroys the planet.

So you're saying without the costs of restructuring, they still posted a loss... so where is the money coming from to pay back the loans? It's not like restructuring costs don't lose real money. If they spend that money and don't make it back, it's a loss. They are 3.4 billion short of where they were at the beginning of the 4th quarter. Even if you don't count the restructuring costs, they still posted a net loss. You can't pay back loans with no profit whatsoever and losses to boot. So again, where is this money going to come from?

I'll believe it when I see it.

[8cd03gro]

Originally Posted by FenwickHockey65

Oh really?

http://www.reuters.com/article/idUSTRE6363V820100407



http://online.wsj.com/article/SB1000...096648592.html

Did you read the article in the original post?

"GM officials have said the company could break even this year, thanks to the massive cost cuts and reorganization under bankruptcy. "

So, on April 7, 2010 they said "there is a good chance we will profit this year" and on April 19, 2010 they said they "could" break even. Hmmm....

[FenwickHockey65]

Originally Posted by 8cd03gro

So you're saying without the costs of restructuring, they still posted a loss... so where is the money coming from to pay back the loans? It's not like restructuring costs don't lose real money. If they spend that money and don't make it back, it's a loss. They are 3.4 billion short of where they were at the beginning of the 4th quarter. Even if you don't count the restructuring costs, they still posted a net loss. You can't pay back loans with no profit whatsoever and losses to boot. So again, where is this money going to come from?

I'll believe it when I see it.

Someone bookmark this post so I can make him eat his words at the end of this year...