In an article by Chris Isidore of CNNMoney.com he stated,
(GM) reported an operating loss more than 11 times larger than expected and a $39 billion charge that was among the biggest profit hits ever reported.It is difficult to imagine, even with the high-level of support Wagoner has managed to receive from his board that he will be able to ride these results out and remain in charge of GM.
The nation's No. 1 automaker, which was hit with a soft U.S. auto market and a two-day strike by the United Auto Workers union during the quarter, lost $1.6 billion, or $2.80 a share, excluding special items.
That compares to the forecast of a 25-cent-a-share loss from analysts surveyed by earnings tracker Thomson First Call and earnings per share of $497 million, or 88 cents, on that basis in the year-earlier period.
Among the problems hurting GM results was a $2.3 billion loss in the home loan business at GMAC due to problems from the meltdown in subprime mortgages. GM sold a majority of GMAC but still owns 49 percent of the lender.
Stay tuned this will be a continuing story.