Once-strong GM has just reported that it lost $6 billion for the first quarter of 2009. Here’s the article from the Detroit Free Press:
Worldwide, GM’s revenues from January through March were down nearly 50% compared to the same period a year ago. Revenue fell to $22.4 billion and was largely attributed to GM’s decision to produce 903,000 fewer cars and trucks.
The struggling Detroit automaker is staying afloat on $15.4 billion in federal loans and faces a June 1 deadline to restructure its debt outside of court or else face bankruptcy.
I had heard elsehwere that a top GM executive was saying that news of impending bankruptcy was what had hurt the company’s sales. However, I wonder if the government bailout didn’t cause just as many people to not buy GM (out of principle) as those who were afraid that White House Automotive Repairs, Inc. would not be able to handle all of the warranty work?
Unfortunately, those numbers (why people didn’t buy GM last quarter) may be difficult to accurately collect and parse.
Here is hoping that GM goes into (and out of bankrupcty) instead of limping along on more of your and my future earnings.