General Motors Again Becoming Addicted To Deep Discounts To Move The Metal

Call me cynical, but I believe the Old GM went bankrupt because it sucked at being profitable. It's a simple concept: Revenue - Costs and Expenses = Profit. Seems the Old GM was really crappy at that. We can go about speculating as to what specific instrument was the means by which they committed suicide, be it poor build quality, staid styling, trying to be all things to all people and ending up being nothing for anyone, but that's besides the point. The fact remains: the Old GM couldn't run a whore house profitably if they were the only one in Vegas.

It *appears* the New GM is following in the Old GM's footsteps: meeting their "unit sales" targets with complete disregard for profitability. Meanwhile, the UAW wants more blood from the host.

Shall we start building the next trough now where the piggies can get their next bailouts, so we can avoid the rush?

But remember that, the new GM was able to raise up out of the ashes as the economy was appearing to make a turnaround through a slow recovery. Now that fuel prices have again started to increase drastically again, the embattle company is almost back in the same boat that is was before --- the economic recovery will come to a stand-still and may even revert to 2008/2009 levels where the profits will disappear no matter how good the product is --- and unfortunate effect of reality.

There are other large businesses that will feel the "pain" soon as they see their options float away on expensive gas fumes.

dumpsty write "But remember that, the new GM was able to raise up out of the ashes..."

I don't know if I would be nearly as generous with my praise of GM as you are. To my eyes, billions of tax-payer dollars in the form of government bailouts, and still more billions of public investors' dollars in the form of stocks purchased at IPO, is what breathed new life into the Old GM corpse. And from that, they gave themselves a news name, The New GM.

At last glance, tax-payers are still out of pocket, and likely never to get their money back, and those who bought New GM shares, are now holding them at a loss. Mind you, some GM execs got big fat bonuses. To *me*, that looks well short of "rising from the ashes."

Wait, this isn't about Toyota, 009? Guess you finally came to your senses and saw the truth about the 'Big 3'.

This may very well all be true, but oblivion or not, I LOVE the new caddys

So sad.