GM reports net loss of $5.9 billion in first quarter
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Debt-ridden US carmaker General Motors has reported a net loss of 5.9 billion dollars in the first quarter. The Detroit firm is struggling to meet a June 1 deadline to complete a major restructuring plan or face the prospect of bankruptcy.
AFP - Troubled US auto giant General Motors on Thursday reported a net earnings loss of six billion dollars in the first quarter, as it faced the prospect of bankruptcy saddled with mounting debt.
Excluding special items, GM reported an adjusted net loss of 5.9 billion dollars, or 9.66 dollars per share, compared to a 381 million dollars loss or 67 cents per share, the company said in a statement.
Most analysts had expected the largest US-based automaker to post a loss of 11.05 dollars per share, meaning a loss of more than 6.7 billion dollars.
GM said its first quarter revenue plunged 47 percent to 22.4 billion dollars from 42.4 billion dollars in the year-ago quarter.
"The drop in revenue was primarily due to GM's production volume decline of 903,000 units, or approximately 40 percent, on a global basis year-over-year," the statement said.
Debt-ridden GM has taken more than 15 billion dollars in government loans and faces a June 1 deadline to complete a major restructuring plan or force to follow its rival Chrysler into bankruptcy court.
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