If you can't view this mail click here
 |
May 9, 2008 |
|
|
|
 |
GENERAL MOTORS: Liquidity Negatively Impacted by $2.1 Billion The work stoppage at supplier American Axle & Manufacturing Holdings Inc. has negatively impacted General Motors Corp.'s liquidity by $2.1 billion for the three months ended March 31, 2008. Approximately 30 of GM's plants in North America have been idled by the work stoppage. GM, however, said the work stoppage has not negatively impacted the company's ability to meet customer demand due to the high levels of inventory at its dealers. GM said GM North America's results were negatively impacted by $800 million as a result of the loss of approximately 100,000 production units in the three months ended March 31, 2008. The automaker anticipates that this lost production will not be fully recovered after this work stoppage is resolved, due to the current economic environment in the United States and to the market shift away from the types of vehicles that have been most strongly affected by the action at American Axle. GM Shareholders' Deficit Rises At March 31, 2008, the automaker's balance sheet showed total assets of $145,741,000,000 and total debts of $186,784,000,000, resulting in a stockholders' deficit of $41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was $37,094,000,000 and $4,558,000,000, respectively. For three months ended March 31, 2008, GM reported a net loss of $3,251,000,000 on $42,670,000,000 total net sales and revenue, compared to a net income of $62,000,000 on $43,387,000,000 total net sales and revenue for same period last year. As reported in the Troubled Company Reporter on May 7, 2008, GM said that during the first quarter of 2008, it took a non-cash charge of $731,000,000 to increase its liability for estimated net costs associated with its support of Delphi Corp.'s bankruptcy and restructuring efforts. GM disclosed that the charge primarily results from updated estimates reflecting uncertainty around the nature, value and timing of GM's recoveries. Delphi was scheduled to emerge from bankruptcy in mid-April but obtained problems with its exit equity financing from Appaloosa Management, PC, thus affecting the timing of GM's recoveries from Delphi. General Motors has now recorded charges totaling $8,300,000,000 in connection with Delphi-related issues. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/ -- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on April 28, 2008, Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. remain on CreditWatch with negative implications, where they were placed March 17, 2008. The CreditWatch update follows downgrades of 49%-owned subsidiaries GMAC LLC (B/Negative/C) and Residential Capital LLC (CCC+/Watch Neg/C). The rating actions on Residential Capital LLC and GMAC were triggered by the resignation of the only independent directors at Residential Capital LLC. |
|
|
||
|
Subscribe/Unsubscribe Options
You are subscribed as [EMAIL]
502 West Patrick Street, Frederick, MD 21701, USA
For subscribe/unsubscribe instructions, please refer to the top right navigation column of this E-mail.
For more information on the Troubled Company Reporter, please visit
http://www.bankrupt.com/periodicals/tcr/tcr.html
To get a paid subscription and receive the full TCR, please visit
https://ecommerce.beard.com/beardgroup/paid_subscription.html