General Motors’ (NYSE:GM) final 2008 financial report was even worse than expected. The company reported a net loss of $9.6 billion for the fourth quarter for total yearly losses of $30.8 billion, the second worst year ever for the automaker. Automotive News reports:
General Motors, battered by a global economic collapse and buoyed by U.S. rescue loans, posted its sixth straight quarterly loss and burned through $5.2 billion in cash as revenue shrank by more than a third.
The net loss of $9.6 billion in the fourth quarter compares with a loss of $1.5 billion a year earlier. The operating loss was $5.9 billion. GM said it expects its auditors to cast doubt on the company’s ability to survive as a “going concern.”
This can’t be good news. Coupled with the fact that the Obama administration is actively looking for debtor-in-possession funding for the company and has conspicuously not ruled out bankruptcy for the automaker, I think it’s looking like some sort of managed bankruptcy may be far more likely than the company or the UAW would like.
Add New Comment
Thanks. Your comment is awaiting approval by a moderator.
Do you already have an account? Log in and claim this comment.
Add New Comment
Trackbacks
(Trackback URL)