Total net loss in 2008 pegged at $30.9 billion
Feb 26, 2009 - 10:51 AM
By Melissa Mancini
DETROIT -- General Motors reported a $9.6 billion US net loss for the fourth quarter of 2008, bringing the total net loss for the year to $30.9 billion US.
The company announced Thursday morning that its total revenue in 2008 was $149 billion US, $31 billion less than 2007.
It's been a "tough year" for the company, GM's chief financial officer Ray Young said during a conference call.
The decline in revenue was due to the drop in sales in the United States because of low consumer confidence and the credit crisis and economic problems globally. These factors were common themes in GM's financial report, Mr. Young said.
Worldwide 2008 sales were 8.35 million vehicles, down 11 per cent or 1.01 million vehicles.
GM also released information relating to its U.S. pension commitments. A statement from the company said the U.S. hourly and salaried qualified pension plans are underfunded by about $12.4 billion US.
GM is committed to continuing to invest in future product to sustain growth, Mr. Young said.
"2008 was an extremely difficult year for the U.S. and global auto markets, especially the second half," GM CEO and chairman Rick Wagoner said in a news release. "These conditions created a very challenging environment for GM and other automakers and led us to take further aggressive and difficult measures to restructure our business."
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