Analyst: GM 'In a battle for their life'

[jamz]

Filed under: Plants/Manufacturing, GM, Earnings/Financials
According to the Center of Automotive Research (CAR), General Motors is the trauma patient with doctors gathered around the gurney giving their all to save it -- and just outside the ER doors, nurses are holding back concerned parties and shouting "It's better that you don't see!" CAR Chairman Dave Cole says it comes down to revenue, and with GM's $15.5 billion Q2 loss, revenue is down by $10 billion vs. Q2 of 2007.

Cole says "Revenue is a measure of the business going forward." We think that's a bit overstated, and that revenue is more accurately a measure of business just transacted. True, multi-billion dollar losses and revenue decreases don't make the best stories, but did anyone really expect it to be cotton candy canes as the world's -- possibly -- largest automaker transfers nearly its entire product lineup from trucks to cars and crossovers?

Admittedly, GM has nothing but an indefinitely long fight-to-the-death cage match ahead of it. The product turnaround probably won't be completed in Q3. And, as GM's CFO said, it's "going to have to grow the business" in addition to making cost cutting moves like shuttering four truck plants by 2010. But we figure there's probably quite a bit more life left in little boy blue than some give it credit for.

[Source: Auto News, sub req'd]
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