Friday, August 1, 2008

General Motors - "It's Your Money, Demand Better"

The quote in the title ("It's Your Money, Demand Better") was actually the Oldsmobile ad slogan from 1993-1997. Oh, the irony.

General Motors reported a $15.5 billion loss this morning. That's a loss of over $27 per share on an $11 stock. That's big. Of course, there are plenty of reasons for this huge loss. I have no intention of getting into them since I have no intention of ever owning this stock. I was interested, however, in looking at a longer history of GM's financial performance.

I compiled the history of GM's net income back to 1993. I would've gone further back, but this was all that was easily available in Edgar.

Net Income (millions)

20082Q -$15,471

20081Q -$3,251

2007 -$38,732

2006 -$1,978

2005 -$10,417

2004 $2,805

2003 $3,822

2002 $1,736

2001 $601

2000 $4,452

1999 $6,002

1998 $2,956

1997 $6,698

1996 $4,963

1995 $939

1994 $822

1993 $724

Since 2005, GM has LOST about $70 billion. That works out to $123 per share. If we look at GM's cumulative net income since 1993, we come up with a LOSS of over $33 billion. I knew it was bad, but these numbers are astounding. I thought only the U.S. government could lose this kind of money so quickly.

Disclosure: The Rubbernecker is short cutesy ad slogans.