GM posts $15.5 billion loss in 2nd quarter

GM announced today posted a loss of $15.5 billion in the second quarter as its North American sales keep plummeting and as its faces labor issues and restructuring plans. That compares pretty bad to a net profit of $891 million from the same period a year ago.

Revenue for the April through June period was $38.2 billion, down from $8.5 billion from 2007. GM says that its losses include a $9.1 billion in one-time charges, $3.3 billion in buyouts of 19,000 hourly workers and another $2.8 billion in liabilities related to Delphi Corp. The loss also included $1.3 billion worth of write-offs because of decline in the value of GMAC, its financial arm.

The company’s chief financial head, Ray Young said that GM might offer another round of buyouts and early retirement offers because of more production cuts.

GM plans to generate $15 billion in liquidity within the next 18 months.

“We”re going to get the second quarter behind us and just move ahead,” Young said.


Source: MSNBC