Breaking: GM posts $1.2 billion loss

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
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