GM loses six billion dollars, burns 10 billion

Though losing money is nothing new to GM, the magnitude of this loss and and rate of burn are stunning.  GM is down to $11.6 billion in cash, and that is only because the U.S. gov’t is giving away money to every one.

GM’s Q1 results are spectacularly bad – there’s no denying that.  And there’s a very real possibility of a GM bankruptcy in the near future.  If there’s any way at all to spin a negative into a (somewhat) positive, this is it : Toyota lost more money than GM in the first quarter of 2009.  That’s right, Toyota managed to lose $7.7 billion – their worst performance ever, by far.

Of course, the difference here is that GM is on Uncle-Sam funded life support, while Toyota remains a long-term viable company, with healthy amounts of cash on hand to get through any rough patches.  One horrific quarter hurts, but it won’t change the fact that Toyota is better positioned for long-term success than GM.

Published on May 8, 2009 in GM

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