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GM's 1st-quarter profit to take hit from recalls
Automotive News
April 23, 2014
by Tim Higgins

DETROIT (Bloomberg) -- This was supposed to be the year when General Motors made a record $10 billion in profit.

Now, CEO Mary Barra will be hard pressed to avoid posting a loss when GM announces its first-quarter earnings on Thursday.

The cost of recalling 2.59 million vehicles linked to the deaths of at least 13 people -- combined with continued losses in Europe and new challenges in Russia, Australia, Asia and South America -- have prompted analysts to downgrade their earnings estimates.

"It's certainly been a trying 100 days" since Barra started on Jan. 15, said Brian Johnson, an industry analyst with Barclays Plc. This week, Johnson lowered his earnings estimate to a penny-per-share loss from a 20-cent profit.

He predicted that the company would have its worst results since the fourth quarter of 2009, when GM was fresh from its U.S. government-backed bankruptcy reorganization.

Over the past four weeks, 12 of 14 analysts surveyed by Bloomberg lowered their estimates for GM's first-quarter adjusted EPS, bringing the consensus estimate down 88 percent, to 6 cents a share.

A year ago, GM reported an adjusted 67 cent per share profit, and a first-quarter net profit of $1.18 billion.

This quarter, it has forecast taking a $1.3 billion loss for costs related to recalling 7 million vehicles, including those with faulty ignition switches. It has also said it will take a $400 million pretax charge for changes in Venezuela's currency. That will come on top of any losses in Europe, which have totaled more than $18 billion since 1999.

Full article at link.
 

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All the Best GM.
I hope this all blows over quick and painless
They knowingly sat on info that their cars had killed people and would continue to do so and you wish them all the best? Even better, they did so almost entirely because they were looking for a public hand out! Whatever happens happens, and if it hurts then they earned it!
 

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Discussion Starter #5
I don't think the public will let any more taxpayer funded bailouts happen now that Chrysler went to the Italians and GM hasn't changed its tune. The banks are better examples, but I'm still against corporate welfare. Poorly managed companies deserve to fail. If you fail, you fail. That's what a true free market is all about......zero gov't interference.
 

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So far this story has been a classic case of a flame-up that died out quicky... I'm sure we'll hear more about it, but it got so big so fast that people are already sick of hearing about it. Not saying that it's over; it's far from over, but news moves so fast these days that what seemed like the biggest story in years a couple of weeks ago has already petered out.
 

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They knowingly sat on info that their cars had killed people and would continue to do so and you wish them all the best? Even better, they did so almost entirely because they were looking for a public hand out! Whatever happens happens, and if it hurts then they earned it!
A. You don’t have all the facts in front of you to make ANY Judgements.
B. People have died by the millions throughout the history of automobiles, worldwide, due to product failures due to design, quality, manufacturing, inadequate safety features not yet mandated, on and on and on.


GM is a good company, that has been put through the ringer in the last decade or so, affecting every aspect of their business. I am not prepared to condemn them and wish them failure, like some here, because it is the hot topic of the day. This country is far better off with GM and the untold benefits it provides the world in fact, then it would be to castrate them because of a handful of deaths……amidst the millions of other deaths.
 

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It's one thing for a defect to pop up and cause problems, and another for a company to know about it but calculate risk versus cost and decide to let it slide. Sure, we don't have all the info, but it seems very clear that GM knew about this problem very early on, and didn't deem it worthy of repairing knowing full well that in some cases cars could shut off. No, they didn't produce cars that they knew would explode or that the wheels would fall off, but it seems that they made a very bad decision regarding a known problem.

Many companies may do it, but today it's GM that is in the hot seat, and I hope the whole situation is fully explained, and quickly.
 

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It's one thing for a defect to pop up and cause problems, and another for a company to know about it but calculate risk versus cost and decide to let it slide. Sure, we don't have all the info, but it seems very clear that GM knew about this problem very early on, and didn't deem it worthy of repairing knowing full well that in some cases cars could shut off. No, they didn't produce cars that they knew would explode or that the wheels would fall off, but it seems that they made a very bad decision regarding a known problem.

Many companies may do it, but today it's GM that is in the hot seat, and I hope the whole situation is fully explained, and quickly.
Exactly, let the investigation process unfold, don't pre-judge and castrate without all the facts, and I am not only confident that dues will be paid, but that lessons will be learned and GM will be better.
 

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Exactly, let the investigation process unfold, don't pre-judge and castrate without all the facts, and I am not only confident that dues will be paid, but that lessons will be learned and GM will be better.
And I'm confident that the families of those who died will take great solace in knowing their loss helped make GM better!

/sarcasm
 

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A. You don’t have all the facts in front of you to make ANY Judgements.
B. People have died by the millions throughout the history of automobiles, worldwide, due to product failures due to design, quality, manufacturing, inadequate safety features not yet mandated, on and on and on.


GM is a good company, that has been put through the ringer in the last decade or so, affecting every aspect of their business. I am not prepared to condemn them and wish them failure, like some here, because it is the hot topic of the day. This country is far better off with GM and the untold benefits it provides the world in fact, then it would be to castrate them because of a handful of deaths……amidst the millions of other deaths.
They replaced the faulty ignition switches with a new item but used the same part number. Thats unheard of for a reason, because it's only done if you intend to hide the defect of the original. You can stick your head in the sand if you like though.

GM has been put through only self inflicted wounds. Nobody outside of GM is affecting any aspect of their business. And please stop with the overacted drama, nobody wishes failure upon them. Not feeling bad that they're going to have to deal with the fruits of their f'ck ups isn't the same as hoping they go belly up.

You're an all or nothing kinda guy, it's either blind love or blow them up hate, no in between it appears.
 

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They replaced the faulty ignition switches with a new item but used the same part number. Thats unheard of for a reason, because it's only done if you intend to hide the defect of the original. You can stick your head in the sand if you like though.

GM has been put through only self inflicted wounds. Nobody outside of GM is affecting any aspect of their business. And please stop with the overacted drama, nobody wishes failure upon them. Not feeling bad that they're going to have to deal with the fruits of their f'ck ups isn't the same as hoping they go belly up.

You're an all or nothing kinda guy, it's either blind love or blow them up hate, no in between it appears.
Back at ya.

And for the record, I love both Ford and GM and have total confidence in both, and try HARD not to prejudge based on pieces of information.
The jury is still out.
Waiting is a virtue that I am trying to develop.
Consider the same.
 

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Perhaps, but they will have to stand in line behind the millions of others who died in automotive accidents throughout history. They are not special, but in fact same.
That may be the most absurd thing you've said on this forum! There is absolutely no way to honestly equate a person being killed in an accident of human error and one being killed in an accident due to a known and ignored flaw.
 

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That may be the most absurd thing you've said on this forum! There is absolutely no way to honestly equate a person being killed in an accident of human error and one being killed in an accident due to a known and ignored flaw.
I stated earlier that product failure has caused millions of deaths in automotive history.
Do you really doubt this?
Tire blowouts.
Suspensions breaking.
Cars stalling.
Steering systems failing.
110 years worth of world wide automotive vehicles and untold accidents.
And in most cases, a better design could have prevented it.
What would you guess, a few thousand?

My God man, snap out of it.
 

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I stated earlier that product failure has caused millions of deaths in automotive history.
Do you really doubt this?
Tire blowouts.
Suspensions breaking.
Cars stalling.
Steering systems failing.
110 years worth of world wide automotive vehicles and untold accidents.
And in most cases, a better design could have prevented it.
What would you guess, a few thousand?

My God man, snap out of it.
And when a product fails they make an effort to correct the faults that caused it, or as Ford did with the Pinto or GM has with the ignition switch they choose to keep it quite and let their customers lives remain at risk. The issue you refuse to grasp isn't that GM screwed up in the design of that ignition, but that they covered it up and knowingly left drivers at risk to a known problem. See the difference? If not you're beyond help!
 

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Discussion Starter #19
Companies that are smothered in dysfunction are usually liquidated (and should be). That's what happened to International Harvester in the 80s, and that wasn't horrible. People like to overreact and pull on the heartstrings because bailouts benefit them in some way (financially, politically, etc.).
 

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Companies that are smothered in dysfunction are usually liquidated (and should be). That's what happened to International Harvester in the 80s, and that wasn't horrible. People like to overreact and pull on the heartstrings because bailouts benefit them in some way (financially, politically, etc.).
WOW, that is pretty tough of you. So if a major corporation that contributes so much to our country and world even, supporting literally 100's of thousands of families globally in total, makes a series of mistakes in product or business decisions, or whatever.....should not be given a small amount of relative support when they need it? Make those dumb execs pay, and to **** with all the families suffering as a result, because they are just tugging at your heart strings?

Interesting.

Let me ask you this, if a family member finds themselves on hard times financially, and need a small loan to get through a rough period.....do you tell them no?
 
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