The GM Disaster (GM, F)

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Includes: F, GM
by: Eddy Elfenbein

Eddy Elfenbein submits: What a disaster! General Motors (GM) lost a stunning $4.8 billion last quarter, or $8.45 a share. This is GM's fifth straight quarterly loss. Bear in mind that this is a $23 stock, and they lost $8.45 a share! That loss comes to over $50 million a day. This figure includes "one-time" items which amount to $3.6 billion, or $6.36 a share. Excluding those charges, GM only lost $2.09 a share. Wall Street was expecting a loss of 12 cents a share. As lousy as Ford's earnings were, they at least beat the Street.

President Bush said that the automakers should develop "a product that's relevant." Ouch.