GM is reporting 6b Dollars 1st quarter net loss

Posted on Thursday, 7 May 2009 , 13:05:21 byEmil

Filed under gmgeneral_motorsnetlossq1gmacGM

GM is reporting 6b Dollars 1st quarter net loss

GM, citing reduced dramatically the sales of industry-wide, says the net loss was 6 billion Dollars for the 1st quarter of this year. The Detroit-based carmaker, that is expected by lots analysts forced in the bankruptcy in these upcoming months, lost 3.3 billion Dollars last year in the same period.

GM lost nearly four % also of the market share in the 1st quarter this year. The carmaker commanded only under 18 % share for the 1st 3 months of the present year. So, the carmaker spent 10.2 billion Dollars more than he took in. he has a reserve of 11.6 billion Dollars in marketable securities and cash.

The revenue was down – almost 50% of same quarter previous year, reflecting all that dramatic drop-off in all-new auto sales. The carmaker affirmed the revenue was around 22.4 billion Dollars, down from 42.4 billion Dollars last year, same period. 'Our first quarter results underscore the importance of executing GM’s revised Viability Plan, which goes further and faster to lower our break-even point' said in a statement Fritz Henderson, the president and CEO.

'Our plan is designed to fix the fundamentals of our business by restructuring and deleveraging our balance sheet, enhancing our revenue capability and dramatically reducing costs. It’s focused on taking care of customers every single day, winning with four core brands, and investing in new products and technology, while at the same time accelerating actions to lower our cost structure to return GM to profitability quickly'. GMAC, the financing arm of GM, reported a $675 million net loss duringits 1st quarter.