GM Posts Loss; Burns Through $10 Billion

Reuters via Yahoo News ^ | May 7, 2009 | Kevin Krolicki and David Bailey

[John W]

DETROIT (Reuters) – General Motors Corp said it burned through $10.2 billion in the first quarter as it failed to cut costs fast enough to offset a sharp decline in global sales and was kept afloat by a federal bailout.

Revenue dropped by almost half to $22.4 billion as the company cut production by about 900,000 vehicles and tried to run down costly inventories on dealer lots in the United States and Europe.

Chief Financial Officer Ray Young said there was evidence consumers were scared away from GM cars and trucks because of concern the automaker was headed for bankruptcy.

"You could not offset the revenue implosion that we experienced here," Young told reporters following release of the quarterly results on Thursday.

He said GM still hoped to complete a debt restructuring out of court but was ready for bankruptcy if that proved necessary. He said GM was pressing ahead with contingency plans for a quick bankruptcy process, drawing on the experience of Chrysler LLC, which filed for bankruptcy last week.

[nyconse]

Well, I agree. I am not for national health, but I see little chance of avoiding it because of the losses of good jobs due to trade/globalism. I have warned about this on this very forum for years...people who have decent jobs with benefits will not support health care and other socialistic policies, but once these same people lose their ability to obtain such jobs, they will lose all faith in capitalism and embrace socialism...what do you expect?