GM Loses $15.5 Billion in Q2

GM points to restructuring charges, falling sales and U.S. strikes. as sources of loss.

On August 1, General Motors posted a $15.471 billion loss for the second quarter of 2008, citing hefty restructuring charges, falling sales and U.S. strikes.

The massive loss compared with a net benefit of $891 million in the same period in 2007.

"GM previously announced that it anticipated a significant second-quarter loss, driven in large part by costs associated with the American Axle and local U.S. strikes, and charges related to the successful U.S. hourly attrition program, actions to reduce North American truck capacity, Delphi and other matters," the company said.

"As our recent product, capacity and liquidity actions clearly demonstrate, we are reacting rapidly to the challenges facing the U.S .economy and auto market, and we continue to take the aggressive steps necessary to transform our U.S. operations," said GM CEO Rick Wagoner.

Copyright Agence France-Presse, 2008

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