GM Reports Net Loss of $16.8bn in 2008

General Motors today published the fourth quarter and calendar year 2008 financial results, unveiling a net loss, excluding special items, of $16.8 billion compared to only $279 million the year before. Just as expected, the American automaker cited the economic downturn as the reason for this grand loss, explaining that the fourth quarter of the last year brought the biggest drops in sales in the whole year.

And speaking of the fourth quarter, GM reported a loss of $5.9 billion for this particular period, compared to a net income of $46 million in the same period of the previous year. Revenues in the fourth quarter 2008 totaled $30.8 billion, down from $46.8 billion in the fourth quarter of 2007.

"2008 was an extremely difficult year for the U.S. and global auto markets, especially the second half," Chairman and CEO Rick Wagoner said. "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."

"We expect these challenging conditions will continue through 2009, and so we are accelerating our restructuring actions. At the same time, we are continuing our commitment to exciting, fuel-efficient cars and trucks, and the leadership in advanced propulsion technology."

General Motors total revenue in 2008 amounted to $149 billion compared to $180 billion in 2007, with the core automotive business bringing $148 billion last year versus $178 billion in 2007. The decline was mainly caused by the global economic turmoil, GM said, as industry sales in 2008 fell 5 percent (3.6 million vehicles). US new car deliveries recorded a drop of 18 percent or approximately 3 million units.