sábado, 2 de agosto de 2008
US$15,500,000,000 - gm LOSS
In three months GM has lost US$ 15,5B. Writing in this way may give a different idea than when we put all the zeros, as I did in this post title. Is it a lot of money? Sure!
It's means the AMBEV's total revenue on 2007, the fourth biggest brazilian company. US$1B less than the third one, Volkswagen do Brasil - a brazilian unit of the german carmaker.
What these companies spend a year to sell here in one of the major economies in the world, GM reports in 3 months. 99,2% of the 500 biggest companies in Brazil do not have this revenue annually. Impressed?! Guess the GM's shareholders! It is getting smaller facing the crisis (that's why I wrote in lowercase on the title).
Analysts say this is an isolated number and on the next quarters loss (once more) will reduce. Poor Ray Youg, GM's CFO. After some happy years as president of brazilian GM's unit, this canadian "japa" (a nickname we use for japonese people here in Brasil) - a very good person, was nominated the main Financial Executive on GM Corp. just during the worst moment...
Now it's time to wait... It's was a strategy error, I have no doubt, keeping producing SUVs and trucks. The american market give some signs this would change its preferences (and looks it changed). Now, even GM knowing what to do (more small and economic cars and less "drinkers"), it's hard to rearrange their machinery and their supply chain. It takes time, maybe too much... I hope not.