GM reports $6-billion loss in first quarter

Troubled US carmaker giant General Motors on Thursday reported a net earnings loss of $6-billion 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, or $9,66 per share, compared to a $381-million loss or 67 cents per share, the company said in a statement.

Most analysts had expected the largest US-based carmaker to post a loss of $11,05 per share, meaning a loss of more than $6,7-billion.

GM said its first quarter revenue plunged 47% to $22,4-billion from $42,4-billion 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%, on a global basis year-on-year,” the statement said.

Debt-ridden GM has taken more than $15-billion 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.—AFP

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