GM posts huge $39 billion net loss

Source: Associated Press

DETROIT - General Motors Corp. posted a company record $39 billion loss Wednesday for the third quarter, as a charge involving unused tax credits brought an abrupt end to a string of three profitable quarters for the nation’s largest automaker.

The loss was one of the biggest quarterly corporate deficits ever, and GM’s shares dropped about 4 percent in morning trading.

GM attributed its loss to a $38.6 billion noncash charge largely related to establishing a valuation allowance against accumulated deferred tax credits in the U.S., Canada and Germany, as well as mortgage losses at GM’s former financial arm, GMAC Financial Services.

Accounting rules require that companies expecting to keep losing money cannot keep carrying deferred tax credits indefinitely and must write down their value.

Read more: http://www.msnbc.msn.com/id/21661794/

and the fact that it is standard...
:nopity:

until the UAW is gone and there is no more money for Democratic candidates. That will be a wake. I thank you in advance for being able to play for us when that happens.

Best to you.

GM Chairman and Chief Executive Rick Wagoner:“It doesn’t have any impact at all,” he said. “I would encourage people not to overreact in a negative way to it.”

And you know what? I believe him. It won't have any impact on anyone's golden parachute.

tax credits! One of those stock market types said something this AM about "they didn't make enough $$ to qualify for the credits". What kid of a golden gift wat THAT supposed to be??? The more money you make the less tax you have to pay?????

Sounds like another IRS BS loophole to me!!!!!!!!!!!!

Four hundred million dollars per day. How can any company sustain such losses?

but that dilutes the value of the stock people already own.

Also, as the price of the stock goes lower and lower, you have to sell more and more shares to raise any money, further diluting the existing shares.

Here are some GM positives:

GM is in a better position to limit health care costs of retirees since the mini-strike.

It appears Lutz school of mediocre design is gone as evidenced by the attractive new Chevy & Saturn sedans.

The crash of the dollar might put GM in the position of actually exporting cars & trucks.

Big positive: GM has healthy European operations that, with the stronger Euro, will help the bottom line.

GM's China operations may also assist.

Let's hope it is not too late, GM claims to finally be serious about hybrids.

Yes, too many of the American cars & trucks are not up to par (probably not news to anyone), but GM does have some things going their way.

Why do you hate America?

Maybe not *your* cup of tea, though.

Meanwhile, I like my 37 mpg Saturn a lot.

(I'm worried Mercury's going down, though, considering everything.)

Either way, I was astounded by my experience with this car. This is not your father/mother's GM/Ford/Chrysler. That's all I have to say, but I hope it gets people thinking.