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  • GM cars popular AND profitable - OUTSIDE US

    GM cars popular — and profitable — outside U.S.

    GM has a bigger presence and employs more people outside the United States than in it, and actually makes money selling cars around the globe. Its U.S. revenue has sunk 24 percent in the past three years, but in the rest of the world, GM can boast a 28 percent increase.
    By Ken Bensinger
    Los Angeles Times


    Employees of German carmaker Adam Opel GmbH, a General Motors subsidiary, work on a new Opel Insignia car at a production plant in Germany. GM has more workers outside the United States than in it.

    Nearly three-fifths of General Motors' employees make cars that are admired, popular and profitable.
    They just don't work in the United States.
    GM has a bigger presence and employs more people outside the United States than in it, and actually makes money selling cars around the globe. Its U.S. revenue has sunk 24 percent in the past three years, but in the rest of the world, GM can boast a 28 percent increase.
    Now, as U.S. lawmakers mull whether to provide billions of dollars in loans to keep the firm afloat, its global reach has become its most overlooked asset and a key to its ultimate survival.
    "A major argument for keeping GM out of bankruptcy is the strength of its foreign footprint," said Kimberly Rodriguez, of accounting and management consulting firm Grant Thornton.
    Yet because of the deeply intertwined nature of GM's global operations, if the company goes down in the United States, she said, "there will certainly be problems for the company worldwide."
    GM's international units are separate corporate entities, which means they would likely be shielded from a U.S. bankruptcy filing and could continue to operate without concerns of a U.S. court seizing their assets.
    But if the automaker's U.S. operations fail, as GM says they will without an immediate cash infusion, it could set off a chain reaction that would not only put U.S. parts suppliers out of business but also could throw off production schedules overseas and freeze up GM's foreign plants.
    That, in turn, could have a ripple effect on its overseas competitors.
    "I am very concerned about GM because we share suppliers with (GM subsidiary) Opel," said Klaus Berning, head of sales and marketing for Porsche, which produces all of its vehicles in Europe.
    Through the first nine months of 2008, 4.3 million of the 6.7 million cars and trucks GM sold — nearly two-thirds — came outside the United States. And of the company's 252,000 employees, 152,000 work abroad, building Chevrolets, Opels, Vauxhalls, Holdens and Buicks in 33 countries.
    "Those overseas businesses over the last several years almost uniformly have been quite profitable, and they have, in almost every case, been able to send dividends back to help us address funding issues in the U.S.," GM CEO Rick Wagoner told a House committee Friday.
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  • #2
    it's the 100,000 people that work for GM that are the problem with their health/pension plans that destroy profits for GM they should have scaled down production for north america years ago and moved prodution to the likes of mexico

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    • #3
      Originally posted by hutch924 View Post
      it's the 100,000 people that work for GM that are the problem with their health/pension plans that destroy profits for GM they should have scaled down production for north america years ago and moved prodution to the likes of mexico
      good point

      Rabbid Tuned - WG Motorworks
      www.wgmotorworks.co.uk

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      • #4
        They could offload countless directors and managers that don't do anything and save billions on directors bonuses alone.
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        Arden Blue Corsa VXR , 18" anthracites, Quaife LSD, AP VXRacing 4pot brakes, KW Variant3 (40mm drop) & Uprated Fast Road Geometry Setup, larger intercooler, 3" Nurburgring exhaust conversion, ITG panel filter, Nurburgring front & back splitters, colour coded roof rails

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