GM, the largest auto maker in the U.S., has announced that it had a quarterly loss of $4.2 Billion dollars, up from a loss of $1.6 billion one year earlier. The loss, equaling $7.35 per share, was far greater than analysts' predictions of $3.70.
However, the worst news of the report was GM's cash position, which GM stated it had spent $6.9 Billion of reserves in the quarter and warned that it will "approach the minimum amount necessary to operate its business" this quarter.
Observers say that if GM is not able to convince the US Congress for a bail-out package, it will be forced into bankruptcy. GM has also announced cash burn reduction measures. Shares fell by 16% after the announcement. GM has lost $72B since 2004.