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GM Posts $6 Billion Q1 Loss
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by Jordan Yerman | May 7, 2009 at 08:27 am
101 views | 2 Recommendations | 1 comment
General Motors (GM), currently surviving on federal life support, has posted a $6 bilion loss, having burned through $10.2 billion ($10,200,000,000) in the first quarter of 2009.
Potential buyers are shying away from GM over fears that the Detroit giant could go into bankruptcy, and the perception persists that new-car warranties would be rendered null and void should the automaker seek protection from creditors.
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GM has unitl June 1 to reach a viable deal to manage the cash hemmorhage and cut over $40 billion in debt.
Revenue dropped by almost half to $22.4 billion as the company cut production by about 900,000 vehicles and tried to run down costly inventories on dealer lots in the United States and Europe.
CEO Fritz Henderson, replacing ousted leader Rick Wagoner, is radically overhauling GM's stable of auto brands.
G.M. intends to slash its brand portfolio in half, by closing Pontiac and trying to sell Saturn, Saab and Hummer.
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Most RecentMost Recommended Comments (1)
at 07:42 on May 10th, 2009
GM has been the pride of America for most of this century. It is a sorry state that it is running into such troubles. It may go down as the company that made <a href="http://www.carazoo.com/article/1711200802/Automobile-Magazines---Reveal-Truths-and-Facts-on-Auto-Industry?">automobile</a> popular among Americans.
Rahul
Indian Car Advisor (<a href="www.carazoo.com">Carazoo.com</a>)