GM Takes Huge Hit, Sale of SUVs Plummeted

It was reported today that GM suffered $15.5 billion losses over the past quarter.


"It...included $1.3 billion worth of write-offs because of a decline in the value of GMAC Financial Services' portfolio of trucks and sport utility vehicles. GM owns 49 percent of GMAC, which has suffered big losses when leases end and it tries to sell the now-unpopular vehicles at depressed prices."


GM is the U.S.' biggest car supplier and with these recent failings, Toyota has the possibility of leading the market. Considering the huge amount of money that GM had to write-off for their SUVs and trucks losing value, Toyota and other fuel-efficient car markers have a chance to use the falling GM stock as leverage to gain ground.

Even though gas prices have recently(over the past two weeks) maintained stability, bicycle use is still increasing. From a Reuters Report, per Laurence O'Sullivan: "Giant, the Taipei-based maker of international bicycle brands such as Boulder, Yukon and Iguana, is reaping the profits. The company, which produced 5.5 million bikes in 2007, is expected to pull in $1 billion in sales this year, up 10 percent.”


These different pressures being put on companies like GM makes one wonder long it will takethe American car manufacturer to start designing and manufacturing cars like these for Americans:


(Ford Fiesta, 63.6 MPG, Euro Release Only)