The bad news concerning the theft of private property from GM bondholders to the labor union continues. GM profits are going over the cliff, channel stuffing at the dealerships is skewing the sales in the United States and the government is the main source of automobile leases.
We now learn that government purchases of GM vehicles rose a whopping 79% in June. (link)
What’s next? The taxpayer bailout for the union pension plan.
From The Guardian:
GM profits slip 41% as European struggles take their toll
America’s largest car firm made $1.5bn in the second quarter of 2012, with European division reporting operating loss of $361m.
General Motors‘ profits fell 41% in the second quarter as troubles in Europe undercut strong sales in North America.
America’s largest automaker made $1.5bn in the second quarter of 2012, compared with $2.5bn for the same period last year. Revenue fell to $37.6bn from $39.4bn in the second quarter of 2011. The results exceeded analysts’ estimates, but further underlined Europe’s drag on the US economy.
“Our results in North America were solid, but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson. “Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”
GM’s European division reported an operating loss of $361m, compared with an operating profit of $102m a year ago. GM is attempting to restructure the unit and recently replaced several of its top executives in Europe. The company is planning to close at least one plant in Europe by 2016, but Dan Ammann, GM’s chief financial officer, said there were no immediate plans to announce more job cuts or factory closings in Europe.