These numbers are numbing… the more so as people seem determined to tear up good money after bad in a continued refusal to accept that what is good for GM is not (and never has been) good for America…. [excerpt below from NZ Herald]
General Motors lost US$6 billion ($10.1 billion) in the first quarter and its revenue fell by nearly half as car buyers worldwide steered clear of showrooms out of fear that the wounded giant may go bankrupt and stop honouring its warranties.
The Detroit-based company also said it spent US$10.2 billion more cash than it took in from January through March, mainly because revenue dropped by a staggering US$20 billion, or 47 per cent.
Chief financial officer Ray Young said GM expects to need another US$2.6 billion in government loans this month and US$9 billion during the rest of the year.
The largest US-based carmaker is living on US$15.4 billion in federal loans and faces a June 1 Government deadline to finish a restructuring plan or enter Chapter 11 bankruptcy protection.
Young said talk of bankruptcy is scaring some consumers away from buying GM vehicles. Chrysler filed for bankruptcy protection last week.