Breaking: GM posts $1.2 billion loss

Article by Christian A., on August 27, 2010

General Motors Co.'s third-quarter financial results revealed a $1.15 billion loss. GM said that due to reduced costs and stabilizing sales, the company would set out to begin repaying $6.7 billion in US loans. In a statement, CEO Fritz Henderson said that the results are evident of the solid foundation being built for the new GM but that there's more work to be done. 

The third quarter report shows a "managerial net loss" for the period from July 10, which is the day GM exited court protection, through Sept. 30.

For the same period last year, GM recorded an operating loss of $4.2 billion and a net loss of $2.5 billion. GM also revealed that revenue for third quarter rose to $28 billion, up $4.9 billion from the second quarter.

GM explained that much of this increase was due to a global seasonally adjusted annual sales rate of 67.8 million units in the quarter, up from 62.7 million in the second quarter. GM also pointed out that it will burn through additional cash in the fourth quarter.

Included in GM's plans is a payout of $2.8 billion for Delphi's bankruptcy settlement while $2 billion is set aside for "payment term adjustments," $2.5 billion for loan repayment to the U.S., Canadian and German governments and $1 billion in restructuring costs. In addition, cash levels will be "materially lower than third-quarter levels of $42.6 billion."

The seasonally adjusted annual sales rate for total U.S. vehicles will be 10.7 million in the last three months of this year.

As influenced by the Cash-for-Clunkers program, GM's adjusted demand averaged 11. 7 million units in the third quarter.

Moreover, GM reported that annual light-vehicle sales are typically 200,000 to 300,000 below total vehicles and that fourth-quarter global demand will drop to a 65.4-million-unit annual rate. In 2010, global sales are expected to reach a total between 62 million and 65 million units. In the US, total-vehicle sales will hit 11 million to 12 million units. [via autonews]

Topics: gm, united states, sales

If you liked the article, share on:

Comments

Recommended

We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries