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August 01, 2008
GM Hemorages Money - Gov Bailout Possible
DETROIT -(Dow Jones)- General Motors Corp. (GM) recorded a stunning $15.5 billion second-quarter net loss, slammed by sinking auto sales, money lost on bad lease deals and costs tied to its North American restructuring.
The auto maker's revenue sank $8.5 billion from a year ago to $38.2 billion, as GM's sales slide in the U.S. continued and growth slowed in other regions around the globe.
Could a Chrysler style government bailout be just around the corner for GM? The old saying was, as GM goes, so goes the nation. A prophetic statement?
This was the story just last quarter...
DETROIT — Even as sales go gangbusters overseas, General Motors (GM) posted a fourth-quarter loss as North American operations continued overshadowing the rest of the company.
GM's 2007 losses of $38.7 billion, the largest for any U.S. automaker ever, primarily reflect a third-quarter tax adjustment that shaved $37.4 billion off the books.
Separately, GM announced Tuesday that it is offering a second round of buyouts to all of its 74,000 United Auto Workers employees in an attempt to move higher-wage workers off plant floors. The buyouts will let GM take advantage of concessions in the new contract that allow it to hire lower-wage workers for some jobs.
Posted by Post Scripts at August 1, 2008 07:51 AM