GM Loses Another $1.2 Billion in Third Quarter
By Chris WeissYou know things are pretty bad when dropping over a billion dollars in a fiscal quarter represents a “solid foundation”. However, that’s exactly how GM is spinning its recent $1.2 billion loss, projected from its non-GAAP managerial results.
“New GM” reports $28 billion of revenue in the third quarter, which is up $4.9 billion from what “Old GM” had to offer back in the second quarter. The company also saw its U.S. inventories drop by 158,000 down to 424,000, an advance it credits to strong sales of some of its newer offerings including the Chevy Camaro.
Given the favorable news, GM is planning to hasten its repayment of $6.7 billion worth of outstanding U.S. loan, beginning with a $1 billion payment next month and quarterly installments thereafter.
Looking ahead, GM is expecting a quiet fourth quarter, after enjoying a third-quarter boost from Cash for Clunkers. Cash flow is expected to be in the red.
Check out AutoBlog for the full release, a release which includes a pretty lengthy disclaimer as to the real-world accuracy of the projections and intended future plans.
Monday, November 16, 2009 10:15PM
I've always had a problem with Cash4Clunkers. To me it seems to go against simple supply and demand economics. How can we push all of these new cars into a market already saturated with used and repossessed vehicles (see http://www.repofinder.com)? Now new cars are worth even less, we have more Amerians in debt, and eventually more repossessions.