WDET News
- GM Posts $2.5 Billion Third Quarter Loss
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Nov 7, 2008Automotive & Business - Link to Audio
General Motors is reporting significant losses for the third quarter. Detroit Public Radio’s Jerome Vaughn has details.
SOQ
General Motors says it lost two-point-five billion dollars – including special charges -- between the beginning of July and the end of September.
The Detroit automaker says its earnings were hurt by dramatically lower consumer spending…and the tightening of credit markets. GM’s worldwide sales fell 11 percent in the third quarter.
Without special charges…including those for transferring retiree health care costs to a trust controlled by the United Auto Workers union…GM lost four-point-two billion dollars.
GM says it could run out of cash in 2009 – unless market conditions improve quickly… asset sales yield additional funds…or the automaker receives financial assistance from the U-S government.
The automaker has also suspended its acquisition talks with Chrysler.