GM Loses $3.25 billion in Q1 2008

Yep, billion with a B.  One has to wonder how long a company can continue to hemorrhage unimaginable amounts of money before it calls it a day, and shuts down for good.  Somehow though, this announcement caused GM’s stock price to rise slightly.  Investors, I will never understand you.

GM is trying to play down their massive loss, by saying that $1.45 billion of it is due to their 49% ownership of GMAC.  I say, YOU OWN THE BUSINESS, STILL A LOSS.  Who really cares whether it came from the business of selling cars, or the business of financing them?  A loss is a loss, period, end of story, good game.

Due to a tough economy, ridiculous strikes, and generally weakness in car lineups, GM’s market share slipped to 21.7% of the US car market.  Oh, how a company can fall from grace.

Published on May 6, 2008 in GM

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