enthalpy

enthalpy

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Sunday, August 03, 2008

Posted 8/03/2008 05:04:00 PM by Douglas

A billion here, a billion there, pretty soon you're going to start talking about some real money.

With another huge quarterly loss now in its rearview mirror, General Motors Corp. faces the ominous task of raising revenue by selling cars rather than trucks.

But even with plans to boost production of its hot-selling fuel-efficient models and cut output of unpopular trucks and sport utility vehicles, the company is running short on time if it keeps burning through more than $1 billion in cash every month.

GM on Friday reported a $15.5 billion second-quarter loss, the third-worst quarterly performance in its nearly 100-year history. Through the first half of the year it used up more than $7 billion in cash, including $3.6 billion from April through June.

Imagine that? GM losing money and market share because they got used to making 50% profit of SUVs and pickups. Did they learn nothing from the 70s?

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