GM Posts $6 Billion Q1 Loss

Over the past few weeks, the major auto manufacturers have been releasing their First Quarter operating figures. As expected, they weren't pretty, with most posting major losses. Let's take a look at the results from General Motors released yesterday.

To be honest, Ford is looking in excellent shape right now compared to most of it's competition. In almost every measure they're outperforming; sales, cash burn as well as posted losses. GM's results aren't pretty, and the company has less then a month until it's government-imposed June 1st "Viability" deadline. What a joke! Numbers like this aren't viable at all. They need to find a way to to chop this down significantly if they have any hope of surviving. These losses are government-financed.

The loss works out to $6 billion, $9.78 per share on revenue of $22.4 billion (down from $42.4 billion in first quarter 2008). The revenue drop was due to the eye-popping 40%, 903,000 unit production volume decline.

Brace yourself; there is more. General Motors burned through $10.2 billion in cash. That's actual cash, not financial "on paper" losses either. Ford actually increased it's cash reserves it the first quarter. To put things in perspective, the government has loaned GM $15.4 billion. $13.4 billion at the beginning of the quarter, and an additional $2 billion recently. Pretty startling!

GM says the horrific numbers are further reason for the continued cuts it announced along with the Pontiac brand closure.

"Our first quarter results underscore the importance of executing GM’s revised viability plan, which goes further and faster to lower our break-even point," said GM CEO Fritz Henderson. "It’s focused on taking care of customers every single day, winning with four core brands, and investing in new products and technology, while at the same time accelerating actions to lower our cost structure to return GM to profitability quickly."

Right. We've got less than a month to see where this train wreck is headed.