GM Ford Losses

In November 2008, automobile giants Ford and General Motors announced major losses and plans for job cuts. On November 7, 2008, Ford said it finished the third quarter with a more than $2.9 billion loss. The automaker said it would cut up to 2,000 white collar jobs—roughly 10 percent of its workforce. Just hours later, rival General Motors announced that it had lost $4.2 billion in the third quarter. GM also said it had used $6.9 billion in cash, adding that merger talks with Chrysler had been suspended.^{1 2 3}

Fast Facts

1. Executives from Ford, GM and Chrysler met with lawmakers on Capitol Hill on November 6, 2008¹
2. Discussions were held about an "emergency loan package"¹
3. General Motors reported a $4.2 billion third quarter operating loss on November 7, 2008²
4. Also said it used $6.9 billion in cash; reports said GM could run out of money by the end of 2008²
5. Ford announced a $2.98 billion third quarter operating loss in November 2008³
6. Ford also reported that October 2008 sales declined 30% due to low consumer confidence and the credit crisis⁴

Quotes

"The global auto industry is facing unprecedented challenges. But we are absolutely convinced that we have the right plan and are taking the right actions to weather this difficult period. In these challenging times our plan is more important than ever."—Alan Mulally, Ford's chief executive¹

"GM is making a pretty direct plea for help. The message is, 'We've done all the things we can do, and we need help.' And if we don't get help, fill in the blank."—Pete Hastings, Morgan Keegan analyst²

Related Pages on Mahalo

Ford | General Motors | Chrysler | Rick Wagoner | 2008 Financial Crisis | Consumer Confidence | Credit Crisis | 2008 Recession | Mortgage Bailout Plan | Gas Prices | GM $39 Billion Loss

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