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US car giants report large losses | |
(about 3 hours later) | |
US carmaker GM has reported a third quarter operating loss of $4.2bn (£2.66bn) after Ford announced it lost $2.98bn during the same period. | |
GM said it would run out of cash in the first half of 2009 if economic and market conditions did not improve. | |
GM said it would cut jobs and costs and has also suspended merger talks with Chrysler to focus on current issues. | |
Ford meanwhile said it would cut salary-related expenses in North America by another 10%. | |
Rescue plea | |
Detroit-based GM posted a third-quarter net loss of $2.5bn, compared with a loss from continuing operations of $42.5bn a year ago. | |
Revenue fell to $37.9bn from $43.7bn in the same period in 2007. GM said it would shed white-collar jobs and cut $2.5bn in capital spending in 2009. | |
Although in its statement it did not specifically refer to Chrysler, GM said it was setting aside considerations for a "strategic acquisition". | |
Meanwhile Ford's revenues fell to $32.1bn, down from $41.1bn in the third quarter of 2007, as vehicle sales in the US plunged to historic lows. | |
Ford , which will accelerate plans to produce fuel-efficient cars, said it was looking at various solutions to support its balance sheet. | |
The US automakers have called for an industry wide rescue package after facing increasing concerns over the levels of cash needed to continue operations in 'difficult economic conditions'. | The US automakers have called for an industry wide rescue package after facing increasing concerns over the levels of cash needed to continue operations in 'difficult economic conditions'. |
Ford shares have fallen more than 70% in 2008, hitting a 26-year low in October. | Ford shares have fallen more than 70% in 2008, hitting a 26-year low in October. |
GM warned on Wednesday the industry faced meltdown after a "near collapse" in demand for cars. |