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GM Loses $9.6B in Q4, Guzzles $6.2B in Cash

Misses estimates, stock tanks

By Kevin Spak,  Newser Staff

Posted Feb 26, 2009 7:08 AM CST
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(Newser) – General Motors burned through $6.2 billion in cash on its way to losing $9.6 billion in the fourth quarter, the company announced today, dragging its liquidity down to $14 billion. Analysts were expecting a loss, but not one this ghastly—the company’s stock is down nearly 24% in pre-market trading, the Wall Street Journal reports. The figures include $4 billion in federal loan money.

In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit.
In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit.   (AP Photo/Carlos Osorio, file)
In this Sept. 22, 2006 file photo, Ed Roesner loads an engine on a platform at GM's Flint Engine South Manufacturing Plant in Flint, Mich.
In this Sept. 22, 2006 file photo, Ed Roesner loads an engine on a platform at GM's Flint Engine South Manufacturing Plant in Flint, Mich.   (AP Photo/Carlos Osorio, file)
General Motors Chairman and Chief Executive Rick Wagoner talks about the company's restructuring plans during a news conference in Detroit, Tuesday, Feb. 17, 2009.
General Motors Chairman and Chief Executive Rick Wagoner talks about the company's restructuring plans during a news conference in Detroit, Tuesday, Feb. 17, 2009.   (AP Photo/Carlos Osorio)
In this Sunday, Dec. 7, 2008 file photo, a GM sign sits in front of a long line of unsold 2009 Escalades at a Cadillac dealership in the southeast Denver suburb of Lone Tree, Colo.
In this Sunday, Dec. 7, 2008 file photo, a GM sign sits in front of a long line of unsold 2009 Escalades at a Cadillac dealership in the southeast Denver suburb of Lone Tree, Colo.   (AP Photo/David Zalubowski)
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COMMENTS
Showing 2 of 2 comments
Guest
Feb 27, 2009 5:10 AM CST
GM was already an established company when Hyundai and Kia got into the market. Their products are now respected and they are challenging the Japanese. What has GM done? Fire all the executives or GM needs to go into bankruptcy because it currently is unable to produce a viable product. It needs to go the way of horse carriages, blacksmiths and gaslight lighters.
BackAgain
Feb 25, 2009 9:31 PM CST
How much is enough? We have lost our minds. Is any of this sustainable? NO Got mre's and ammo?

Cash level way more important than loss figure
Detroit Free Press

GM closer on deal for investors
Detroit News

 
General Motors • earnings reports • corporate earnings • auto industry • cash

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