Is this the end of V8SC?

[Beatcha]

I thought some of the Gear from the Old Nissan plant was Holden bound, Yes the plant is still running but in a largely reduced capacity to what it used to produce. I am not sure when this was to happen or if it still will but it was on the books 6 months ago.

[Raglanparade]

I thought Nissan import everything now ?

[retro]

I also heard the GM top man in China got the chop/left today.

. Aparently sales are being slowed down by the Chinese government.

[GTRMagic]

Originally Posted by retro

Ion have unloaded 400 workers today.

The Castalloy plant in Adelaide seems to have been shutdown... which is bad news for the workers, although it might make one of the posters here who lives across the road quite happy...

News Here

[Kerri]

Yes, thanks for that GTR, but unfortunately it is the Wingfield factory which will close at this point not the one across the road.

I haven't heard what will happen to the North Plympton one but one can only hope

Not that I like to see anyone on the unemployment list, but the factory should have been moved out to Wingfield somewhere years ago.

They cop so much flack for being close too housing but hey we knew it was there when we bought our house 11 years ago, so we just wait.

[GTRMagic]

Give it time Kerri... sadly Ion seems to be the financial equivalent of a train wreck...

[Kerri]

Sad, yes especially for all the Harley riders in the world

[GTRMagic]

From our friends at the British Financial times Here

GM quarterly loss of $1.1bn is worst in decade
By James Mackintosh in London and Bernard Simon in Toronto
Published: April 20 2005 03:00 | Last updated: April 20 2005 03:00

* Giant US carmaker abandons profit forecast


* Healthcare costs and falling sales are blamed

General Motors abandoned its profit prediction for the year as rising healthcare costs and falling sales at the world's biggest carmaker led to a quarterly loss of $1.1bn (£574m) - its worst in more than a decade.

GM said uncertainty about efforts to deal with its healthcare cost crisis and other significant parts of its business meant it could not provide any guidance for profits this year, just a month after it drastically cut forecasts.

The withdrawal of the forecast for profits of up to $1.1bn this year came as the automotive business reported a first-quarter operating cash outflow of $3bn, more than the $2bn revised target the company had set for the full year. Another $1.7bn was spent on job losses in Europe and a payment to Fiat to settle a dispute with the Italian carmaker.

The cash flow has been watched closely, with investors on the alert for a downgrade of GM's credit rating to junk bond status, a move that could force many investment-grade bond funds to sell their holdings in one of the world's top five borrowers.

But the bad news has already been priced in, with the risk premium over government debt that investors demand to own GM bonds more than doubling this year to about 7 percentage points. The bonds now trade more cheaply than the average for BB-rated junk bonds. GM shares were down slightly at $25.99 by late afternoon.

Scott Sprinzen, analyst at Standard & Poor's, the credit rating agency, said: "If there was some good news in this announcement I am still looking for it." However, he said that the withdrawal of the profit forecast would not affect the rating, which S&P and Moody's Investors Service currently have one notch above junk with a negative outlook.

John Devine, chief financial officer, said the company's priorities were to deal with healthcare costs - expected to rise $1bn to $5.3bn for retired employees this year - and get its products right. "These two issues stand out that we have to address to get North America profitable," he said.

In the first quarter, GM's North American car business lost $1.3bn before one-off costs, on revenues of $25.4bn, down 12.7 per cent. Group net losses of $1.1bn in the first quarter compare with net income of $1.2bn in the first quarter last year and are the biggest since 1992 when GM was on the brink of bankruptcy.

Before one-off charges for European and US dismissals, write-downs at an idle factory and tax gains, the quarterly loss was $839m, or $1.48 a share. This was in line with market forecasts and slightly ahead of the company's prediction a month ago of a $1.50 a share loss for the quarter.

Additional reporting by Ivar Simensen

So what part of that doesnt suggest GM is in deep kaka?

[Chucky]

But Holden sells so many cars, how could they be in trouble?

(OK, I'll remove my tongue from my cheek now.)

[crYnOid]

Originally Posted by GTRMagic

So what part of that doesnt suggest GM is in deep kaka?

The bit where GM have $26b cash on hand. They will be ok........ for a while at least.

[hrt_rulz01]

they'll be ok for now. GM has its plans in place to get them out of this mess. CEO rick wagoner will haave a more in depth involvement now, GM say. holden recently announced it first quarter earnings, and they smashed previous records. even hsv smashed its old records. holden are doing great. if gm went bust, i think holden would buy themselves out?

[xrystl]

Originally Posted by crYnOid

The bit where GM have $26b cash on hand. They will be ok........ for a while at least.

Read that their debts - workers entitlements etc (inc healthcare) is $51bn , not so good !!!!!!!!!

[crYnOid]

Originally Posted by xrystl

Read that their debts - workers entitlements etc (inc healthcare) is $51bn , not so good !!!!!!!!!

more like $300b. and if what I read earlier today is correct that is more than the federal debt of canada!

[peckstar]

yes you are right they are bleeding at 3 billion a quarter so 26 billion cash on hand would take 2 years