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GM suffers £21bn loss
26 February 2009
General Motors suffered a net loss of $31bn (£21.7bn) in 2008 and reports from the US say that the car maker is “awaiting advice on whether it remains a going concern”.
The US government is said to be desperate to avoid GM going bankrupt because of the potential for huge job losses and costs likely to result.
According to the latest figures, GM’s revenues in the fourth quarter of 2008 were down a massive 34 per cent as buyers stayed away from showrooms.
GM also burned through $5.2bn (£3.6bn) in cash in the fourth quarter, 25 per cent more than the $4bn (£2.8bn) loan it received form the US government in December last year.
All of GM’s global operations were also hit by the recession. GM Europe lost $956m (£670m), GM Asia-Pacific $879m (£615m) and $154m (£107m) in Latin America, Africa and Middle East.
GM Europe said it had cut production in the fourth quarter of 2008 by a huge 53 per cent as new car sales collapsed.
Hilton Holloway
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