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GM Reports $30 Billion Loss In 2008

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By KENDRA MARR

The Washington Post

Published: February 27, 2009

WASHINGTON - General Motors on Thursday morning posted a loss of $30.9 billion in 2008 as the auto giant suffered one of its worst years in decades and as company leaders prepared to meet with U.S. government officials to detail the need for more federal money to survive.

Frozen credit and falling consumer confidence kept people from buying cars, and the largest U.S. automaker reported a $9.6 billion quarterly loss in the last three months of the year. The company burned through nearly $6 billion in cash during that time and quarterly revenue fell to $30.8 billion from $46.8 billion.

GM also said it anticipates receiving a "going concern" opinion from its auditors, meaning they will determine whether there is substantial doubt that GM will be able to financially continue operations.

As GM waits for the government to assess its request for additional aid, "we thought it was prudent to provide this disclosure," said chief financial officer Ray Young. "There's no doubt the economic situation is having a dramatic impact on General Motors."

In a controversial effort led by the Bush administration to help U.S. automakers suffering from the recession's impact, GM received $13.4 billion in federal loans. Last week, the company submitted an updated viability plan to Treasury, increasing its loan request to a total of $30 billion.

This is GM's second-worst annual performance in the company's history. In 2007, GM lost $38.7 billion but much of that loss was attributed to penalties for unused tax credits.

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