Events Calendar
In This Section
Stocks slump after rise in unemployment rate
Boeing to cut 4,500 jobs as airline demand falls
U.S. retailers slashed 66,000 jobs in December
Jobless rate jumps to 7.2 percent in December
Federal loan deals bar strikes at GM, Chrysler
Group says U.S. 'wet dumps,' like nine in Ohio, pose threat
U.S. retailers ring up dismal sales
Most Read Stories
Lakemore police say man killed his wife in standoff
Suspect in Lakemore standoff expected to recover
Police raid Akron gaming parlor
Storm could bring heavy snow tonight, Saturday; Parking bans in effect
Palin says she's been exploited by Couric and Fey
Suspected meth lab busted in Cuyahoga Falls
Browns' Mangini brings experience
Skeptics urging check of home program
Blogs:
Akron Law Café:
College Football is Un-American
The Heldenfiles:
Cheryl Holdridge, R.I.P.
Tribe Matters:
Shapiro puts Indians in position to win
Patrick McManamon:
ESPN clears up a key to tonight's game
Browns Bulletin:
Browns may interview ex-Broncos GM
Cleveland Browns:
Mangini takes command
Cleveland Cavaliers:
Cleveland Cavaliers: Of Leprechauns and Losses
CavsHQ: A Fan's View:
The Countdown Begins - Cavs v. Celtics
Akron Zips:
Five things you should know about Miami
Varsity Letters:
Ignatius’ Kyle has busy offseason
Kent State Sports:
Volleyball players earn All-Academic honors
Car Chase:
January is auction time
See Jane Style:
Chicago Chic?
All Da King's Men:
Obama's Economic News Conference
Blog of Mass Destruction:
Why Israeli Leaders Terrorize Palestinians
HRLite House:
The Psychology Channel, Interesting Videos, Jobs in I-O, and Happy Birthday Elvis
Akron Gamer:
Games in '09: Resident Evil 5
Ohio Travels with Betty:
Does Ohio have an Andy Warhol Museum?
Sound Check:
Axl Rose speaks on Guns & Rose(s)
Let's Talk Real Estate:
Mortgage Forgiveness Debt Relief Act of 2007 Extended
Third largest decline in automaker's history blamed on sales, leases
By Greg Bensinger
and Jeff Green
Bloomberg News
Published on Saturday, Aug 02, 2008
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.

