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General Motors has just released its fourth quarter “earnings” and they are anything but. GM posted a net loss of $9.6 billion, with an operating loss of $5.9 billion.
The loss is the sixth consecutive quarterly loss by the struggling automaker, and is considerably worse than the $1.5 billion the company lost in Q4 last year.
GM has a cash reserve of $14 billion, including the $4 billion it has already received from the U.S. Treasury, however, at the current rate of loss all those fund will be depleted by Q4 of 2009. It goes without saying then that the additional $16.6 billion GM has requested is much needed to keep the company afloat.
GM posted loss in all four of its sales regions with the largest loss in North America, which accounts for $2.1 billion of the $5.9 billion deficit. GM Europe posted a $956 million loss (four times as bad as the Q4 loss in ’07), while GM Asia Pacific declined by $879 million and the remaining Latin America, Africa and Middle East regions lost $154 million – down from an actual revenue the year before.
CEO Rick Wagoner had this to say: “2008 was an extremely difficult year for the U.S. and global auto markets. We expected these challenging conditions will continue through 2009, and so we are accelerating our restructuring actions.”
Wagoner will meet with Obama’s task force, headed by U.S. Treasury Secretary Timothy Geithner and White House economic adviser Larry Summers, later today.
Over the past year General Motors has seen its stock value decrease by 89 percent.