GM posts $6bn loss as bankruptcy looms
North America's biggest carmaker reported a $6bn first-quarter net loss and an accelerating cash drain, underlining the pressure it faces to gain concessions from stakeholders or face bankruptcy\n
Source: ft.com
Comments
Simon James, Gore Browne Investment Management, 2009-05-07 14:42:39
The world has substantially too much car manufacturing capacity. It is excellent to see mergers occur, such as VW/Porsche and Fiat/Chrysler, as the managers will be looking for cost savings, which implies capacity reduction. Let's hope that the government subsidies which are being provided come at a price for the incumbents, which inter alia drives them, and US manufacturers in particular, to produce more ecologically efficient vehicles in the future.