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Finance & Stock Groups Forum Index » Mutual Funds » US car giants report large losses
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 Posted: Sun Nov 09, 2008 10:14 am |
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US car giants report large losses
US carmaker GM has reported a third quarter operating loss of $4.2bn
(£2.66bn) after Ford announced it lost $2.98bn during the same
period.
GM said it would run out of cash in the first half of 2009 if economic
and market conditions did not improve.
GM said it would cut jobs and costs and has also suspended merger
talks with Chrysler to focus on current issues.
It says about 3,600 workers will be laid off indefinitely early next
year as production is slowed at 10 plants.
Ford meanwhile said it would cut salary-related expenses in North
America by another 10%.
GM and Ford burned though $14.6bn in cash between them in the quarter.
No acquisition
Detroit-based GM posted a third-quarter net loss of $2.5bn, compared
with a loss from continuing operations of $42.5bn a year ago.
Revenue fell to $37.9bn from $43.7bn in the same period in 2007. GM
said it would shed white-collar jobs and cut $2.5bn in capital
spending in 2009.
Although in its statement it did not specifically refer to Chrysler,
GM said it was setting aside considerations for a "strategic
acquisition".
Meanwhile Ford's revenues fell to $32.1bn, down from $41.1bn in the
third quarter of 2007, as vehicle sales in the US plunged to historic
lows.
Ford, which will accelerate plans to produce fuel-efficient cars, said
it was looking at various solutions to support its balance sheet
http://news.bbc.co.uk/2/hi/business/7715896.stm |
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