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Gm Posts 5th Straight Quarterly Loss

fbachman

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fbachman Senior Enthusiast

fbachman

Posted
Posted

I didn't see any executives volunteering for pay cuts......

 

 

DETROIT -- General Motors today reported its fifth straight quarterly loss because of "unprecedented economic and credit market turmoil'' and warned that it may not have enough cash to operate by mid-2009.

GM ended the third quarter with $16.2 billion in cash on hand, down from $21 billion on June 30.

 

GM's reported net loss in the quarter was $2.5 billion, including several one-time gains and charges. Before those special items, the company reported an adjusted loss of $4.2 billion. Revenue fell $5.8 billion, to $37.9 billion.

 

GM said it has identified ways to boost liquidity by an additional $5 billion by the end of next year, on top of $15 billion announced in July.

 

"Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business," the company said in a statement.

 

"Looking into the first two quarters of 2009, even with its planned actions, the company's estimated liquidity will fall significantly short of that."

 

GM stock, as of 12:15 p.m. EST, had fallen 50 cents, or 10.4 percent, to $4.30 a share.

 

Growing automotive crisis

 

The results compound the troubles of the Detroit 3, which are petitioning Washington for low-interest loans to survive plunging sales, a worldwide credit crisis and a weakening U.S. economy.

 

Ford Motor Co. today posted a $3.0 billion aftertax operating loss for the third quarter and told of further plans to cut costs and preserve cash as it braces for the global automotive downturn to worsen in 2009.

 

GM, which hasn't posted a profit since 2004, is coping with the weakest market for U.S. sales since 1991. Demand industrywide fell to its lowest levels in 25 years in October as GM reported a 45.1percent decline in sales. The automaker's U.S. sales are down 20.4 percent through October compared with a year earlier.

 

GM executives also are slashing capital spending plans for 2009 and 2010, people familiar with the plan told Automotive News this month. The cuts mean delays for nearly all of GM's product launches, including key vehicles such as the new Chevrolet Cruze sedan and the re-engineered Chevrolet Malibu sedan.

 

The Cruze was set to launch in the summer of 2010 but may now be pushed back six months to a year. The restyled Malibu was due as a 2012 model; it now is tentatively pushed back a year.

 

The sources say GM has preserved the intended launch date of November 2010 for its Chevrolet Volt electric hybrid.

gave20 Senior Enthusiast

gave20

Posted
Posted

Oh you guys worry too much. By mid 2009 the bailout will have kicked in and GM will be making money again; come on, with the government involved what could go wrong? Plus with the 25 Billion coming to retool for new alternative energy vehicles and gas at record high prices, I've heard as high as $1.99/gal in some places, the future looks bright for Detroit.

redvett Senior Enthusiast

redvett

Posted
Posted

Where have you been? The new GM/UAW contract has cut wages to $15 an hour with two tier wages along with medical cuts and more. CEO Wagner took no bonus in 2007 or 08.

 

 

I didn't see any executives volunteering for pay cuts......

Or from the UAW either..... :jester:

 

VMax2007 Senior Enthusiast

VMax2007

Posted
Posted
Off topic: I want a corvette.

 

 

:jester:

 

+1

 

The minute they announce they are going under, I am buying me a new Vette, and if available, a new ragtop SS Camaro. They will become collectors items in no time. :lol:

HawkeyeOC Senior Enthusiast

HawkeyeOC

Posted
Posted
come on, with the government involved what could go wrong?

 

:jester::lol::lol::D:D:D

With that sentence alone I could devote at least 25 pages and still not fully answer that question :D

VMax2007 Senior Enthusiast

VMax2007

Posted
Posted
come on, with the government involved what could go wrong?

 

:jester::lol::lol::D:D:D

With that sentence alone I could devote at least 25 pages and still not fully answer that question :D

 

 

 

 

 

Why? I can answer it with one word....Everything. :D

zxcv Enthusiast

zxcv

Posted
Posted
come on, with the government involved what could go wrong?

 

:jester::lol::lol::D:D:D

With that sentence alone I could devote at least 25 pages and still not fully answer that question :D

 

 

 

 

 

Why? I can answer it with one word....Everything. :D

 

 

 

 

 

:D

rvsahs Senior Enthusiast

rvsahs

Posted
Posted
Where have you been? The new GM/UAW contract has cut wages to $15 an hour with two tier wages along with medical cuts and more. CEO Wagner took no bonus in 2007 or 08.

 

 

I didn't see any executives volunteering for pay cuts......

Or from the UAW either..... :lol:

 

 

 

 

We've been around... actually it's $14/hr for "non-core" non-assembly status and for 3000 "insource" jobs (with another 3100 assessed for insource status) over the next 4 years. But that's out of how many thousands of assembly line or other "skilled trade" workers making 2x+ as much. Which is pretty damn good for a just a high school graduate level of education (and maybe an associate trades degree for some). :jester:

HawkeyeOC Senior Enthusiast

HawkeyeOC

Posted
Posted
come on, with the government involved what could go wrong?

 

:jester::lol::lol::D:D:D

With that sentence alone I could devote at least 25 pages and still not fully answer that question :D

 

 

 

 

 

Why? I can answer it with one word....Everything. :D

 

 

You just messed up my chance to get 5 wrenches by tomorrow :D

rvsahs Senior Enthusiast

rvsahs

Posted
Posted
come on, with the government involved what could go wrong?

 

:jester::lol::lol::D:D:D

With that sentence alone I could devote at least 25 pages and still not fully answer that question :D

 

 

 

 

 

Why? I can answer it with one word....Everything. :D

 

Yep. Next question?... :D

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