General Motors (GM) $15 Billion Q2 Loss

Besides this morning's July Employment report, the other main headline of the day is the $15.5 billion loss from General Motors (GM).  To put this in perspective, with a market cap of $6.3 billion, this loss represents about 2.5 times the net worth of the company!  Not only is this number bad for GM, but it will also cause Q2 earnings for the S&P 500 to take a big hit as well.

Comments

[NLF]

The truly shocking thing here is that GM is still trading. Its 10Q seem to indicate that the company is insolvent with Equity of -$44 bn. The surprising thing here is that its market cap is still $6 bn.

I guess the only reason they're around is that pension liability, benefits and deferred taxes are excluded. If I were a director of GM I would be worried... if I were a supplier I would be very worried.





Regards

[Mike, New York]

The troubles for GM have just begun.

In the next three years, the U.S. market will see a flood of Chinese manufactured automotive products, and the cut price production in China will drive the big three to insolvency.