GM Makes Cars, Don’t They?

While I’m reasonably sure General Motors makes motor vehicles, you wouldn’t necessarily know it from tonight’s earnings conference call:

  • Number of questions asked: 47
  • Number of questions about pensions and the GM jobs bank: 19 (40%)
  • Number of questions about GMAC (GM’s finance subsisidiary): 6 (13%)
  • Number of questions about GM’s crummy products: 0 (0%)


  1. Nigel deGruyther says:

    Considering the agenda of those on the call, it is exactly what you would expect. One of the largest expense items GM has is legacy pensions. One of the largest revenue generators is lending for the purchase of vehicles. If you want to correctly predict future earnings and use that to predict share price, these would be two items you would need to be quite accurate on.

  2. Management has focused on those important short-term factors, and the company’s long-term health has suffered accordingly.
    The only thing that keeps a company in business long-term is a good product that keeps customers coming back.

  3. General Motors is, and has been for some time, a large non-bank financial lender and health-care company that also happens to sell cars (and not very good ones).