General Motors has made a lot of publicity lately, mainly because of the company's dire financial situation. This massive automobile manufacturer has provided services and jobs for thousands of families worldwide. So, what is in store financially for General Motors in the near future? Here is a look at the financial situation that this company faces today.
General Motors, along with many other car companies, are losing untold millions of dollars every week, and are losing them fast. With the economy in distress, fewer and fewer people are looking to buy new cars and instead are holding on to what little money that they have. This puts a huge financial strain on General Motors, one which may hurt them for years to come.
Recently, General Motors announced that they recorded a loss of $4.2 billion dollars in the third quarter. This means that General Motors' net worth is down by an astounding $48.5 billion dollars. They also announced that sales numbers are continuing to drop and the automaker will be running on very few liquid assets by the end of the year.
With this extremely dramatic loss in revenue General Motors, along with thousands of other automobile companies, will be cutting more jobs, slashing costs, eliminating bonuses and raises, and even cutting retirement plans all together. This is the only way these failing companies can continue to stay in business during these hard times.
General Motors is in a difficult financial situation at the moment. The company is looking to make further cuts to try and get itself up and running strong again as soon as possible.
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