[YENKO DEUCE REGISTRY]

[ QUOTE ]
[ QUOTE ]
generally when costs exceed revenue - you tend to go out of business!

[/ QUOTE ]

I didn't think that was true in the auto industry. Seems like the big boys are always reporting losses!

[/ QUOTE ]

Very true. The current day net losses are booked to an account generally known as 'Retained Earnings'. That account is also where all the net profits have gone from prior years. So, if people ever wonder why GM has not gone under after the last several years, it's bec/ they have 'retained the earnings' from prior years to offset the current years of losses. Obviously, they can't continue at this pace, which is why companies in this situation have management shakeups, stock price volatility, debt reorg's, union contract 'discussions', executive compensation investigations, etc..... This is not an Enron situation, it's just a tough business to be in! My loyalties are still with the American auto makers though.