As sales plummet and a June 1 deadline looms (at which time the Company must prove to the US Government that it can turn its business around and become profitable), General Motors Corp. posted a loss of US$6B. During the first quarter of 2009, GM burned through US$10.2B and failed to get its out-of-control costs in check quickly enough to offset the slide in global car demand.
GM’s Chief Financial Officer said that the problem is exacerbated as consumers shy away from GM vehicles – as they are worried the automaker is likely to go bankrupt.
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