We knew GM's second quarter earnings would be ugly, but I'm not sure many people expected this kind of number. Certainly Wall Street didn't since the estimate was for GM to lose $1.489 billion. Turns out Gm's loss was 4 times worse: $6.3 billion. Factor in charges, and GM lost $15.5 billion dollars last quarter.
What was the problem? The biggest hit came from GM's auto business which lost $4 billion. You can blame most of that on GM's North American business which has plummeted. In fact revenue in the company's North American auto operations plunged a whopping $8 billion, roughly 33%.
While Chairman and CEO Rick Wagoner told me this morning that GM has the liquidity it needs to turn things around by 2010, he's not ready to say that we've seen the bottom in this weak auto market. We'll find out how weak it is later today when GM reports July sales. Wagoner says July felt much like June. In other words. The sales will be weak (and in fact, all the automakers except for Honda are expected to report poor monthly sales).