Will Gm Losses Hurt Nhra (1 Viewer)

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TOOLMAN

Nitro Member
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Just Wandering If Anyones Heard About Cutbacks On Current Racing Programs And The Effect Of Future Programs.
 
Re: Will Gm Loses Hurt Nhra

Here's how I understood GM's reasoning when it announced the big loss last year:
General Motors wrote off the books several billion dollars. The accounting actually occurred last year. The dollars written off did not exist as you and I understand "dollars." The accounting entries consisted of the asset value of tax deductions which GM had carried forward from previous years in which they had insufficient profits to use those deductions in full.
Why did they write them off? An accountant could answer that better than I, however, the stated reason was to conform the books to a more realistic statement of GM's true asset level. They were acknowledging that the carry forward tax deductions would expire before GM would make enough money to use them.
Cheers,
Ed
 
Re: Will Gm Loses Hurt Nhra

Here's how I understood GM's reasoning when it announced the big loss last year:
General Motors wrote off the books several billion dollars. The accounting actually occurred last year. The dollars written off did not exist as you and I understand "dollars." The accounting entries consisted of the asset value of tax deductions which GM had carried forward from previous years in which they had insufficient profits to use those deductions in full.
Why did they write them off? An accountant could answer that better than I, however, the stated reason was to conform the books to a more realistic statement of GM's true asset level. They were acknowledging that the carry forward tax deductions would expire before GM would make enough money to use them.
Cheers,
Ed

ED, i think your right on the money, i have 4 more years before mine are up, then i will have to buy more equip. I think another reason is to down size their salary's, board members make $200k and they will be cut to $100k. All execs will be cut 10-50%. They are also closing several plants including one in Lansing Mich. They are offering 75,000 hourly and salary buyouts. I hope it works out for those who buyout.:eek:
 
The segment I heard on the radio said that GM in reality broke even due to the tax credits.
 
The segment I heard on the radio said that GM in reality broke even due to the tax credits.

Your right they are broke, but hopefully this first step will help, their execs are going to take pay cuts. They have brought in several money men, don't know their names at this time but this first step came from them. Hope this works out for everyone,
 
Don't even attempt to figure this out! GM reportedly posted a loss of $38 BILLION dollars last year - I'm not sure where the money comes from to keep operating. Chrysler is cutting models and closing a large number of dealerships - cutbacks have already happened in P/S.
If my company lost $250,000 in a year, I'd be done. We can only hope that new GM beancounters won't notice a few million hidden in the budget to support racing.
Flip side? My son sells Toyotas and often sells vehicles for full list price. Toyota has reportedly spent a billion dollars each on F1 and NASCAR with miserable results. GM cuts back, killing PS and a sharp PS marketing person shows Toyota how to own the class for perhaps .02% of one of the other series budget (do the math). Hmmm
 
It is all accounting. I work at a GM plant and the true dollars that most of us would look at on books was around 23 million loss. They basically "wrote down" a bunch of tax credits they couldn't use. They didn't lose 23 billion dollars or anything near it.
 
I have a good friend at GM and you would love to try his plan but:


I've been saying it for years now, the trouble at GM is their marketing and lack of accountability. As you may know, I presented a comprehensive plan "Return to Greatness" to the top executives who couldn't have cared less. The question remains whether they are simply incompetent or on a long term mission to relocate the industry's production and willing to endure years of losses in order to achieve their goal? Looking at market share loss over the past twenty years, one notices a decline very similar to descending a flight of stairs. My contention is that stupidity is not that sequential, therefore one must assume an orderly progression towards elimination of unionized North American production.

Along the way assets have been spun which has served to enrich the investment bankers who control roughly two thirds of the stock and, through Board representation, fully support the "leadership?" of Red Ink Rick. Meanwhile Detroit, Flint, and other communities suffer as jobs and tax revenues are significantly reduced. The unbridled greed has in fact impacted our entire country. During this lengthy period of adjustment the cuts by pencil whipping bean counters are explained away as necessary for virtually every excuse imaginable. Every excuse that is except for the true reason GM has continued to fall, the lack of real leadership by "car guys" who could actually make progress and profit a reality.
 
Well said Mike,
And that applies to other industries as well.

Where are the real car guys, where's the big three rivalry?
None seem to have the desire to build the best Hot Rod anymore.
 
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