Even though General Motors Corp are operating under a federal bailout, reports show that it burned through $10.2 billion in the first quarter.
As we all know, the car sales declined drastically all over the Globe, leading to a 50% drop of GM’s revenue to $22.4 billion. On Thursday, General Motors posted a quarterly net loss of $6 billion, which is way over last year’s $3.3 billion loss.
The situation on the stock exchange looks bad for GM, as the company posted a loss of $9.66 per share. Anyway the loss exceded analysts’ expectations, for they predicted a loss per share of $11.05.
For GM the deadline imposed by the US Government is aproaching and they will have to record a cut of more than $40 billion in debt.
It seems that Rick Wagoner wasn’t able to systematize properly the $15.4 billion emergency loans from the U.S. Treasury, because he was sacked from his GM chief executive job at the end of the first quarter.
The US autos stated on Thursday no agreement was reached with United Auto Workers union or the Treasury as GM failed to win new federal backing for a turnaround plan.
Read More On This Topic:
- GM Filed For Bankruptcy Today Under Chapter 11 Protection
- General Motors to send 1,100 closure letters to dealerships
- Chrysler Set To File For Bankruptcy Under Chapter 11 Protection
- Intel penalized with $1.45 Billion by the European Union
- Rumors Say That The Bank of America Will Need Another $34 billion In Capital
