Daily Auto News GM Lost More Than $30 Billion in 2008
Daily Auto News
Forbes reports, “General Motors posted a deeper than expected loss on Thursday, underscoring concerns regarding its survival as the U.S. government evaluates how to restore the profitability of the U.S. auto industry..
CNN Money reports, “General Motors posted a $9.6 billion net loss in the fourth quarter, a period in which its sales plunged and it needed a federal bailout to avoid filing for bankruptcy.”
The sum, according to Jalopnik, brings “the net cash hemorrhaged for all of 2008 to $30.9 billion.”
“The company,” according to CNN Money, “Is expecting to burn through another $14 billion in cash this year, with most of it taking place in the first quarter as the company struggles to deal with weak demand and significant overhead costs.”
The Detroit Free Press adds, “GM is seeking additional money, as much as $16.6 billion, from the U.S. government. Of that amount, GM has said it needs $2 billion in March and $2.6 billion in April.”
The staggering sums are prompting more questions about the automaker’s long-term survival. Forbes reports, “Shares of the automaker shed 21 cents, or 8.2%, at $2.34 in premarket trading on Thursday morning, as the company said it anticipates a warning from auditors regarding whether it can continue as ‘going concern.’”
News of 2008′s losses, Reuters notes, “corresponds with a scheduled meeting between GM Chief Executive Rick Wagoner and the autos task force headed by U.S. Treasury Secretary Timothy Geithner and White House economic adviser Larry Summers.”
Media reports earlier this week said that the task force had directed staff to begin searching for funding sources for possible Chapter 11 bankruptcy filings by both GM and rival Chrysler.
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