Go Back   Team-BHP > BHP Worldwide > The International Automotive Scene


Reply
 
Thread Tools Search this Thread
Old 17th February 2012, 10:59   #1
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,712
Thanked: 89,052 Times
Default The General is back! GM is World's No.1 and posts record profit for 2011

I couldn't help but smile when reading the news reports. GM was down in the dumps in recent years with record losses, an incapable CEO (Rick Wagoner), bloated organisational structure and shoddy cars. Liquidity to pay the bills was always an issue. The situation got so bad that GM went to Washington with a begging bowl. The Obama administration restructured GM via bankruptcy, a new management, loan settlements and cutting off many jobs & baggage brands. If it weren't for Washington, GM would have gone into liquidation. Here's the numbers for calendar year 2011:

Gross Revenue = $150.3 billion (or Rs. ~750,000 crores)
Net Profit = $7.6 billion

The company did especially well in North America & China. Europe, however, continued to be a loss center. Nearly 7,000 factory workers will get $7,000 cheques as a bonus

This is the first time in several years the GM, Ford & Chrysler have all recorded profits. As if to add a sweetener, it is now confirmed that GM is the World's No.1 manufacturer by sales and has overtaken Toyota.

Don't want to sound like a broken record, but if you're a petrol-head, be sure to read the first recommendation in this post of mine. It will give you an insider's look at how pathetic things were in 2005 for GM, Ford & Chrysler. And they only had themselves to blame.
GTO is offline   (5) Thanks Reply With Quote
Old 17th February 2012, 11:08   #2
BHPian
 
revintup's Avatar
 
Join Date: Jun 2011
Location: Kottaym
Posts: 381
Thanked: 242 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

The global recession was another factor that should be added whilst analysing the poor show by the american brands these few years.

Many people decided to hold on to their existing cars because nobody was really sure when the tide would be done with.
revintup is offline   (1) Thanks Reply With Quote
Old 17th February 2012, 12:18   #3
Distinguished - BHPian
 
smartcat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 2,968
Thanked: 11,899 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Swinging from billions of dollars in profits to billions of dollars in losses, and then back to profit - this car business has become very cyclical (like that of other commodity businesses like steel manufacturing etc).

Quote:
Originally Posted by GTO View Post
Don't want to sound like a broken record, but if you're a petrol-head, be sure to read the first recommendation in this post of mine. It will give you an insider's look at how pathetic things were in 2005 for GM, Ford & Chrysler. And they only had themselves to blame.
Haven't read the book yet. But what changes did GM make over the last few years? What's in public domain is consolidation of brands/models - I think they have axed brands like Pontiac, Oldsmobile, Saturn, Hummer etc. How did they handle all the issues like bloated workforce, worker healthcare bills, pensions and so on?
smartcat is online now   Reply With Quote
Old 17th February 2012, 12:45   #4
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,038
Thanked: 2,075 Times
Smile Re: The General is back! GM is World's No.1 and posts record profit for 2011

Quote:
Originally Posted by smartcat View Post
But what changes did GM make over the last few years? How did they handle all the issues like bloated workforce, worker healthcare bills, pensions and so on?
+1 to that, very much interested to know how did the turnaround happen. I had read that the US govt had actually pumped in a lot of moolah to keep the nation's premier car manking company alive.

This success cant be said the same for the Indian operations pitifully. With the decade old models like Aveo, Optra, Uva etc still being continued, I hope the US success rubs more to the Indian operations and GM brings in some exciting models sooner.
ghodlur is online now   Reply With Quote
Old 17th February 2012, 13:46   #5
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,712
Thanked: 89,052 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Quote:
Originally Posted by smartcat View Post
But what changes did GM make over the last few years?
Reduced US worker healthcare liabilities
Bankruptcy allowed them to get rid of debt (settled at a fraction of original outstandings)
Lay offs
Shut down excess factories
Got rid of the baggage brands
Improved product quality
New CEO
New Management
IIRC, refreshed the board of directors
Toyota's PR disaster (unintended acceleration sage)

The new GM is leaner & meaner, much like the new Ford (whose turnaround is a story in itself). Look up business articles on Alan Mullaly's remarkable feat in bringing the Blue Oval back to profitablity.

Quote:
Originally Posted by ghodlur View Post
I had read that the US govt had actually pumped in a lot of moolah to keep the nation's premier car manking company alive.
About $50 billion of which 1/2 has already been recovered.

Last edited by GTO : 17th February 2012 at 13:47.
GTO is offline   (2) Thanks Reply With Quote
Old 17th February 2012, 14:23   #6
Team-BHP Support
 
theMAG's Avatar
 
Join Date: May 2006
Location: Long Island, NY
Posts: 7,034
Thanked: 1,470 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

While its definitely nice to see the king back to its throne, the means that was used takes away the sheen from this achievement, and some respect with it. I truly hope GM does learns from its mistakes voluntarily as a continuous process from now on.
theMAG is offline   Reply With Quote
Old 17th February 2012, 16:19   #7
Senior - BHPian
 
sumeethaldankar's Avatar
 
Join Date: May 2007
Location: Mumbai
Posts: 2,668
Thanked: 1,018 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Glad to know that GM's back to the No 1 position but is there any particular vehicle which helped to turn the co's fortunes around ?
sumeethaldankar is offline   Reply With Quote
Old 17th February 2012, 16:58   #8
BHPian
 
rangarx's Avatar
 
Join Date: Jun 2009
Location: Udumalpet / Che
Posts: 269
Thanked: 107 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Good.

This is a reason to rejoice for the folks at Detroit but only time would tell sustenance is possible or not. Toyota was hit by Tsunami and quake. Also VW is breathing GM's neck.

However as long as GM is strong in US and China, I think they can continue celebrations in every year to come.
rangarx is online now   Reply With Quote
Old 17th February 2012, 23:33   #9
Senior - BHPian
 
HammerHead's Avatar
 
Join Date: Oct 2009
Location: Goan in Pune
Posts: 1,093
Thanked: 210 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Quote:
Originally Posted by GTO View Post
Shut down excess factories
Got rid of the baggage brands
If GM had done these things on time, they would have never reached the sate of bankruptcy.

Anyways, they learnt their lessons. I hope one day they will take Indian market seriously which they haven't till now. Look at their upcoming cars here in India. Looks as if they forgot their design just after designing Cruze and Beat.

Last edited by HammerHead : 17th February 2012 at 23:37.
HammerHead is offline   (1) Thanks Reply With Quote
Old 18th February 2012, 01:50   #10
Senior - BHPian
 
chevelle's Avatar
 
Join Date: Apr 2008
Location: sacto
Posts: 1,290
Thanked: 503 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Quote:
Originally Posted by HammerHead View Post
If GM had done these things on time, they would have never reached the sate of bankruptcy.

Anyways, they learnt their lessons. I hope one day they will take Indian market seriously which they haven't till now. Look at their upcoming cars here in India. Looks as if they forgot their design just after designing Cruze and Beat.
the biggest lesson they learned was to increase their car's quality, reliability, interior and exterior. totally outdated compared to current times. there are still some issues with some cars, but overall its a big leap. if they had taken care of that before, they would have survived. But then its applicable for all three so can't really complain. Their main market - USA was used to such things in past. Bad economy made them see the truth.
chevelle is offline   Reply With Quote
Old 19th February 2012, 20:24   #11
BHPian
 
Join Date: Aug 2009
Location: New Delhi
Posts: 109
Thanked: 16 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Quote:
Originally Posted by sumeethaldankar View Post
Glad to know that GM's back to the No 1 position but is there any particular vehicle which helped to turn the co's fortunes around ?
Eminem and Clint Eastwood did more for Gm than GM did for itself @youtube
Warhound is offline   Reply With Quote
Old 19th February 2012, 21:38   #12
BANNED
 
Join Date: Aug 2009
Location: Coimbatore / MENA
Posts: 673
Thanked: 973 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Quote:
Originally Posted by Warhound View Post
Eminem and Clint Eastwood did more for Gm than GM did for itself @youtube
Aren't those ads for Chrysler?

Kudos to the Big Three for dramatic turnarounds. There is a resurgence in manufacturing in the US, and feel we are in store for some good innovation after a long hiatus.

Cheers.
gthang is offline   Reply With Quote
Old 19th February 2012, 21:42   #13
BHPian
 
Join Date: Aug 2009
Location: New Delhi
Posts: 109
Thanked: 16 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Quote:
Originally Posted by gthang View Post
Aren't those ads for Chrysler?

Kudos to the Big Three for dramatic turnarounds. There is a resurgence in manufacturing in the US, and feel we are in store for some good innovation after a long hiatus.

Cheers.

Buahahaha ! what was I thinking.. Yes its chrysler and not GM !
Warhound is offline   Reply With Quote
Old 3rd August 2012, 12:52   #14
Distinguished - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 10,026
Thanked: 15,475 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Year 2012 (so far!)seem not to haunt GM with their europen losses mounting. GM's profit falls 41% to $1.49 billion.

Quote:
Net income attributable to common stockholders for the April-June period dropped 41 percent to $1.49 billion. Revenue dipped 4 percent to $37.61 billion, largely due to the stronger U.S. dollar.
GM said it lost $361 million in Europe during the quarter, after posting a rare profit of $102 million there a year earlier. GM's losses in Europe for the first half of the year totaled $617 million, vs. $747 million for all of 2011
http://www.autonews.com/apps/pbcs.dl...uropean-losses
volkman10 is offline   Reply With Quote
Old 17th July 2013, 17:20   #15
Distinguished - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 10,026
Thanked: 15,475 Times
Default Re: The General is back! GM is World's No.1 and posts record profit for 2011

Year 2013 so far...

For the first six months of 2013, GM has sold 4.85 million cars.

The VW Group reported its sales increase by 5.5% for January-June 2013. About 4.7 million units.

The gap between VW and GM which is about 150,000 units now, was over 220,000 units last year.


http://indianautosblog.com/2013/07/g...h1-sales-87919
volkman10 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Cricket World Cup 2011 thread. EDIT: India World Champions !! Eddy Shifting gears 992 11th April 2011 19:40
Record Posts on TBHP gowda79 Shifting gears 13 5th March 2008 11:46
MARUTI ALTO SETS NEW RECORD... Breaks 800's record set in 2003... CrAzY dRiVeR The Indian Car Scene 4 7th December 2006 04:53
World Record Drag Timings And Top Speeds !!! varun_patra Int'l Motorsport 18 6th November 2005 15:44


All times are GMT +5.5. The time now is 19:49.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks