Jump to content
House Price Crash Forum

General Motors


MarkG
 Share

Recommended Posts

Some interesting data that someone pointed me to yesterday:

http://finance.yahoo.com/q/ks?s=GM

General Motors has a turnover of $190 billion, a market valuation of only $16 billion, a profit of about $3 billion a year, and _$300_ billion in debts.

In other words, if they were to take all their profits and start paying off their debts, at current rates they'd be debt-free around the year 2105. What makes it worse is that they have huge liabilities for company pensions: apparently in ten years from now they're expected to have two pensioners to pay for for every single employee! So each person working at the company will have to make enough money to support three people.

It's apparently become a company that's no longer run to make money for employees and shareholders, but a huge pension fund that just happens to make cars, most of which are then sold at a loss. While it might be bad if just one huge corporation like GM is in such a state, it's apparently not much worse than many other big American corporations that have been able to keep costs down for the last few decades by offering big fat stinking pensions in lieu of higher wages while people worked for them.

GM seem to be dropping fast lately, and if people come to realise that there are more companies in similar situations then the impact on the US stock markets could be huge.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.