Business News

Giant US carmakers report
big losses in crisis
BBC . London

US carmaker GM has reported a third quarter operating loss of $4.2 billion after Ford announced it lost $2.98 billion during the same period.
GM said it would run out of cash in the first half of 2009 if economic and market conditions did not improve. GM said it would cut jobs and costs and has also suspended merger talks with Chrysler to focus on current issues.
It says about 3,600 workers will be laid off indefinitely early next year as production is slowed at 10 plants.
Ford meanwhile said it would cut salary-related expenses in North America by another 10 per cent.
GM and Ford burned though $14.6 billion in cash between them in the quarter.
Detroit-based GM posted a third-quarter net loss of $2.5 billion, compared with a loss from continuing operations of $42.5 billion a year ago.
Revenue fell to $37.9 billion from $43.7 billion in the same period in 2007. GM said it would shed white-collar jobs and cut $2.5 billion in capital spending in 2009.
Although in its statement it did not specifically refer to Chrysler, GM said it was setting aside considerations for a ‘strategic acquisition’.
Meanwhile Ford’s revenues fell to $32.1 billion, down from $41.1 billion in the third quarter of 2007, as vehicle sales in the US plunged to historic lows.
Ford, which will accelerate plans to produce fuel-efficient cars, said it was looking at various solutions to support its balance sheet.