GM, Ford burned through $14.6 billion in third quarter
Saturday, November 8th, 2008
Auto workers leave the General Motors Powertrain facility in Warren on Friday. General Motors Corp. said it lost $2.5 billion in the third quarter and warned that it could run out of cash in 2009. GM also said it has suspended talks to acquire Chrysler, and said its cash burn for the quarter accelerated to $6.9 billion due to a severe U.S. auto sales slump.
(AP Photo)
DETROIT – Bleak earnings reports by two of Michigan’s three automakers show the domestic auto industry is edging perilously close to the abyss.
General Motors Corp. and Ford Motor Co. said Friday they burned through a combined $14.6 billion in cash for the third quarter ending Sept. 30, increasing the chances the automakers will become insolvent by early next year.
GM also reported it was suspending merger talks with privately-held Chrysler LLC, which analysts said dramatically raises the risk of a Chrysler failure.
by Rick Haglund | Detroit Bureau | via www.mlive.com
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