Container Top
Homes   Jobs   Cars   Shopping
Search

Events Calendar

EVENT SEARCH:

In This Section


Most Read Stories


Blogs:


Pets:
Zeke, the basketball playing dog

The Heldenfiles:
Friday Notebook

Patrick McManamon:
For your Saturday entertainment …

Akron Zips:
Opponent outlook: Kent State

Browns Bulletin:
Quick thought on Browns rookies

Tribe Matters:
7-11-09 Morning Highlights

Cleveland Browns:
Stallworth test showed marijuana

Kent State Sports:
Men's Basketball Scheduling update

Cleveland Cavaliers:
Andy’s Signed According to ESPN

All Da King's Men:
Baby Got Barack !

Blog of Mass Destruction:
The Rogue Bush White House

Akron Law Café:
New Wiretapping Revelations from Inspector General

Varsity Letters:
Report: Ontko selects Wisconsin

See Jane Style:
Oh Baby!

Car Chase:
Where do We Go from Here?

Let's Talk Real Estate:
Closings….Not the Good Kind!

Ohio Travels with Betty:
Margy inquires-when is a Taste of Hudson?

Sound Check:
LeVert II live performance Saturday night — "Dedication" album due July 13,

HRLite House:
DDI One of Best Places to Work

Akron Gamer:
Video game sales drop in May

GM loses $15.5 billion

Third largest decline in automaker's history blamed on sales, leases

By Greg Bensinger
and Jeff Green
Bloomberg News

General Motors Corp. reported Friday a quarterly loss of $15.5 billion, the third biggest in its 100-year history, because of plunging U.S. sales and the declining value of truck leases.

The deficit of $27.33 a share compares with a profit of $891 million, or $1.56, a year earlier. Excluding costs GM considers one-time, the per-share loss was four times bigger than analysts projected. Labor strikes contributed to a $9.9 billion drop in North American revenue, and sales worldwide tumbled 18 percent to $38.2 billion.

Chief Executive Officer Rick Wagoner has cut manufacturing costs by $9 billion and plans to boost liquidity by as much as $17 billion to remain solvent. The world's largest automaker has posted $69.8 billion in losses since 2004 and said Friday it must have $11 billion to $14 billion each month to pay its bills.

''They really need those external fundraising measures to get through to 2010,'' said Brian Johnson, a Chicago-based Lehman Brothers analyst. ''We cannot count on an economic rebound.''

GM has $21 billion in cash and marketable securities and another $5 billion from available bank loans. Its fourth consecutive quarterly loss comes as U.S. auto sales fall to 15-year lows.

''There is a tendency to throw up your hands and say this can't be fixed,'' said Wagoner, in his ninth year as CEO. ''We do have adequate liquidity through 2009 even with continuing difficult market conditions.''

General Motors Corp. reported Friday a quarterly loss of $15.5 billion, the third biggest in its 100-year history, because of plunging U.S. sales and the declining value of truck leases.

Get the full article here.


Story tools

Email  Email   Print  Print   Save  Save   Reprint  Reprint   Popular  Most Popular   Reprint  Subscribe

Share this story

AddThis Social Bookmark Button
















Most Commented Stories