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Discussion Starter #1
From a Motley Fool article today:

"On average, GM lost $1,227 for every vehicle it has sold this year -- nearly 10 times the $139 per-car loss incurred by U.S. rival Ford (NYSE: F - News). In contrast, American-German hybrid DaimlerChrysler (NYSE: DCX - News) earned $186 per vehicle sold.
Meanwhile, all three of the largest Japanese automakers earned multiple times more profits than even the only profitable "American" car company. Nissan (Nasdaq: NSANY - News) fared the best among the Japanese automakers, earning $1,826 per vehicle sold. Toyota (NYSE: TM - News), sacrificing profits in its quest for enough sales volume to overtake GM as the world sales leader, settled for second place in profitability, with $1,488 per auto sold. And while Honda (NYSE: HMC - News) brought up the rear among the island nation's car manufacturers, its $1,203-per-vehicle profits still left its American and German rivals in the dust."
 

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They have different strategies....give the car away up front, make the profit on parts...sell the quality car up front for profit...don't make it up on parts because the volume isn't there...simple. The best of both worlds is...build a product that will require multiple repairs soon and sell at a profit up front.
 

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This is very interesting. I would have thought the profit would have been much more. How is this calculated? I would think that the longer a car is made, the more profitable it becomes because you recoup your R&D costs etc.
 

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Discussion Starter #5
I don't think the profit / loss numbers are based on any specific model. They just took the corporate profit or loss for the year divided by the number of vehicles produced.

I could be wrong, but I think that's how they came up with those numbers.
 

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Sometimes you wonder why they just don't shut down GM and start over completely.

GM is plagued by issues of their past. It is sad that an American Icon which had such a great start fell behind so far in the 70's and 80's and still has not been able to catch up.

I'm proud to be an American, but when it comes down to spending my hard earned money on a vehicle, there are simply better choices than the average Domestic vehicle.
 

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FL_Ridge said:
Sometimes you wonder why they just don't shut down GM and start over completely.

GM is plagued by issues of their past. It is sad that an American Icon which had such a great start fell behind so far in the 70's and 80's and still has not been able to catch up.

I'm proud to be an American, but when it comes down to spending my hard earned money on a vehicle, there are simply better choices than the average Domestic vehicle.
GM's problem is that they have to pay $1600 per every vehicle sold towards employee retirement and benefits plans. This puts them in a distinct disadvantage when it comes to profitability.
 

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Some years ago,while working at GM I bought a brass hat car(executive driven) it was a 1986 Oldsmobile 98 with the works.The list price was near $20,000 while the title in the glove box said $5,125.

The GM plant that is now a Delphi plant about to go bankrupt sold bearings to GM and other auto makers at a net profit of 1million and a half dollars a day,every day!

My Avalanche was made entirley in Mexico(non-union) and had a very hefty MSRP of $44,000.

The most popular car in China is a Buick sedan,GM's is the number 1 carmaker there in parts and complete autos by at least 25%.

By contrast my Ridge is made mostly in Canada(medical insured by Canada),and the US(the same country the big three are fleeing).

Don't feel sorry for GM and remember all engines and drive trains for smaller GM vehicles are now made in China i.e. Rendevoux,Equinox,etc.
 
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