Fast forward to 2008. GM is not making profits and their shares are virtually worthless.
Quarterly losses at General Motors came in at $4.2 billion, or $7.35 per share -- roughly twice the consensus estimate for a $3.70-per-share loss --as revenue slid 13% to $37.9 billion.
....
GM was the largest U.S. corporation by revenue as recently as 2000, and the company's market capitalization peaked at $52 billion that year. Its market cap has since shrunk to $2.72 billion.
Can we have a Roger and Me II when every single GM employee is out of work after the bankruptcy? In this version Roger Smith tries to track down Michael Moore to explain why he considers profits as something that is unimportant.
Sadly, GM is probably going to get bailed out by the US government. The Michael Moores, and Buzz Hargroves of the world get rewarded for getting ridiculous and unprofitable concessions for unskilled labour. $27 an hour for screwing in lug nuts? No problem.
Update: Hey, while we're throwing around $700 billion, why not toss a few bucks to GM and Ford? It makes me sick.
Update II: Michael Bloomberg thinks GM should declare bankruptcy
A growing chorus of investors believes GM should be put into bankruptcy
protection to resolve its bloated labor contracts and debts, and start fresh
with new managers who'll make cars people really want.
"Reorganization will end GM's inefficiencies but if the government
props the company up with more bailouts, it will just extend the inefficiencies
and let them keep building cars no one wants to buy, at highly overpriced
labor," said Peter Schiff, president of Euro-Pacific Capital.
