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The Current State of the US Auto Market

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  • uplanderguyuplanderguy Kent, OHPosts: 7,326
    I think it looks better than the Ford fish mouth on the Fusion.

    Geez, we agree on something!

    Got a free ticket to the Cleveland Auto Show. Really have too much to do so am just going up, basically, to see the Impala, the SS, and the Cadillacs, as well as the classic cars they always have on display too.
  • tlongtlong CaliforniaPosts: 4,695
  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,919
    edited February 2013
    Shoot us an email and we'll get to it faster next time.

    We won't be able help much with with your other unsolicited mail and junk when you get this going though:

    image
  • ateixeiraateixeira Posts: 72,587
    I guess this is cool, but I'm more interested in the opposite - cars that can use my already-paid-for smart phone.

    This is just another monthly bill to pay.
  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,919
    The hype is that you don't need your phone in the car to do all this stuff. But you're going to be carrying it everywhere anyway, so....
  • andres3andres3 CAPosts: 5,278
    I see an AT&T symbol involved with that GM 4G hot spot plan????

    I put AT&T and GM on the same odorous excrement list as Circuit City, Best Buy, Rite Aid, and Chrysler.

    I'd avoid the technology simply because AT&T's name is on it. I don't do business with AT&T; not in this lifetime.
  • tlongtlong CaliforniaPosts: 4,695
    I guess this is cool, but I'm more interested in the opposite - cars that can use my already-paid-for smart phone.

    This is just another monthly bill to pay.


    You took the words right out of my mouth.

    Gee, I just want to pay $20-$90/month MORE to drive my car around and be distracted! No thanks.
  • tlongtlong CaliforniaPosts: 4,695
    I put AT&T and GM on the same odorous excrement list as Circuit City, Best Buy, Rite Aid, and Chrysler.

    ...and right above the lowest excrement of the bailed out banks.
  • circlewcirclew Posts: 8,245
    I put AT&T and GM on the same odorous excrement list as Circuit City, Best Buy, Rite Aid, and Chrysler.

    And right you are to do so!

    Gross Profit

    While revenue increased by the aforementioned 1.3% COGS increased by 7.8%. This had the effect of cutting gross profit nearly in half, from $19.1 billion in 2011 to $10.8 billion in 2012.

    In 2012 GM sold 9.288 million vehicles, up from 9.024 million in 2011, an increase of 2.9%. This leads to the conclusion that GM made far less profit per vehicle compared to 2011. This is not a good trend. Sacrificing margin for volume is very rarely a good idea.

    Operating Expenses

    Total operating expenses for 2012 total $41.2 billion, but this includes a large goodwill write-off of $27 billion. Excluding this charge OPEX sits at just about $14 billion. This leads to an EBIT of $-3.2 billion. So how did this loss of over $3 billion become a gain of $6 billion?

    Deferred tax valuation allowance

    GM claimed a reversal of deferred tax valuation allowances of $36.3 billion in the fourth quarter. What does that mean?

    As the old GM was heading toward bankruptcy the company wrote off $39 billion of deferred tax assets. These had accumulated from all of the losses that had built up in prior years. But these assets only have value if the company reasonably expects to turn a profit in the future and therefore be able to claim these tax benefits. Since GM was in an unending death spiral, the assets were written off.

    Now that GM expects to be profitable it has reversed that write-off and reinstated most of those assets. This increased the book value of the company above the market capitalization, requiring GM to write off the excess goodwill.

    This leads to two conclusions:

    GM will not be paying taxes in the US for quite some time.

    Excluding the effects of the goodwill write-off and the tax benefit GM actually lost money in 2012.

    The bottom line

    It looks like GM actually had quite a rough 2012, with Europe taking a serious toll on the company. There are some big warning signs here, like the dramatic drop in gross profit, that are effectively hidden by the tax benefit and goodwill write-off. All of this makes GM's financial performance extremely fuzzy. I don't think I'll be buying GM stock anytime soon.
  • uplanderguyuplanderguy Kent, OHPosts: 7,326
    1.3 million Fords, Toyotas, Hondas under investigation

    and again...no GM's.
  • ateixeiraateixeira Posts: 72,587
    AT&T symbol involved with that GM 4G hot spot plan

    So I looked at the current mobile hotspots, and the minimum plan is $50/month, and even that one is not unlimited.

    A Malibu leases for $189 around here, that bumps your monthly cost to around $249. Pretty significant bump.

    Add a hotspot plan to your phone for $10/month if you don't already have one.

    I bet GM gets a cut of whatever profits AT&T would make.
  • fintailfintail Posts: 32,890
    I call ATT the "deathstar", as their logo kind of looks like one. I was pleased their attempted GSM monopoly via buying out T-Mobile failed, and shocked that the corporate controlled Feds didn't let it go through. Maybe all isn't lost.

    And $50/month for in-car hotspot when all smartphones can do it anyway, and said hotspot will be dependent on the same signal? No thanks.
  • ateixeiraateixeira Posts: 72,587
    T-Mobile sucks too. That's my carrier. And they waited for the acquisition and updating nothing.

    They're still the only major carrier without the iPhone.
  • fintailfintail Posts: 32,890
    All American carriers are either expensive (VZW), have sketchy non-urban coverage (TMo and others), or both. I live in a city, so price is a concern.

    I think Tmo is supposed to get the iphone this spring - never understood the hype, I like a device I can modify/root to my own standards. The build quality is nice, but the rest is controlled and cultish. And my Note II makes it look like a baby's toy :shades:
  • ateixeiraateixeira Posts: 72,587
    Work supports BB, iPhone to an extent, but not Android yet.

    Z10/Q10 BlackBerry is probably too little too late.

    Oddly enough the Note II would be my pick as well if all options were on the table. The screen is simply amazing - like holding a small tablet that still fits in your dress shirt pocket.
  • fintailfintail Posts: 32,890
    My work uses Android now, was BB for years. I have worked in Telecom since 01 - am not a huge phone geek, but I like to have something current. The Note II is easily the best phone I've ever had - monster sized but monster capability.
  • ateixeiraateixeira Posts: 72,587
    edited February 2013
    http://www.thetruthaboutcars.com/2013/02/exclusive-bernstein-research-literally-- - dissects-chinese-cars-auto-industry-in-200-page-report/

    most Chinese sedans of the recent era have been reverse engineered copies of the Toyota Corolla


    The consensus seems to be that SAIC is miles ahead of everyone else – thanks mostly to their collaboration with GM
  • ateixeiraateixeira Posts: 72,587
    I support whatever we deploy, so I have to use what my users use, unfortunately.
  • boomchekboomchek Vancouver, BC, CanadaPosts: 5,096
    That's one thing I hate about the iphone. You have very little control over it when you plug it in for an update. It starts automatically before you can pause it and manually choose what to sync, and if you don't do it properly it'll erase stuff you had on the iphone (if you don't sync some items). Even worst is when you have two iphones like my wife's and mine on one computer. IT loads my stuff on hers, her stuff on mine.

    When I had an older Motorolla Razor and a Sony Ericsson pre smart phones with memory capabilities I liked the fact that you could simply drag and drop files you want in your phone as easily as moving papers from one drawer to another in your desk.

    End of my rant.....

    2007 BMW 328i Sports Pkg, 1993 Honda Accord EXR (my 33rd car).

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