GM posts net loss of $6 bln for first quarter

CHICAGO, May 7 (Xinhua) -- General Motors Corp. (GM) posted a net loss of 6 billion U.S. dollars in the first quarter of this year amid a global economic downturn and low sales that have helped push the automaker to the brink of bankruptcy, reports reaching here from Detroit said Thursday.

According to a report by the Detroit News, GM spent 10.2 billion dollars more than it took in during the first quarter, a cash burn that was partially offset by 15.4 billion dollars in federal loans that has kept the company afloat since December.

GM ended the quarter with 11.6 billion dollars in cash and marketable securities, down from 14.2 billion dollars at the end of 2008.

The automaker's revenue was 22.4 billion dollars down from 42.4billion dollars in the first quarter last year.

The automaker, surviving on federal loans, has until June 1 to reach money-saving concessions with the United Auto Workers and bondholders or face a potential Chapter 11 bankruptcy filing.

GM President and Chief Executive Officer Fritz Henderson has said a bankruptcy filing is probable but not the preferred route.

"The rumors and speculation about bankruptcy had some impact in terms of our overall retail share performance," Chief Financial Officer Ray Young said Thursday. "That clearly impacted our overall level of sales and production," he said.

The loss comes on a day in which GM is restarting concession talks with the United Auto Workers and presses ahead with plans to cut plants, jobs, dealerships and eliminate about 44 billion dollars in debt as part of a broad restructuring plan.

GM's restructuring plan involves cutting 21,000 U.S. factory jobs by next year, 7,000 more than originally planned, and closing16 of its 47 U.S. manufacturing plants by 2012.

GM also reiterated Thursday that it plans additional cuts among the ranks of salaried employees and executives.

"This is a defining moment in the history of General Motors, and we are committed to our plan, which we believe will lead to a stable and sustainable operating structure with a strong balance sheet," Henderson said.

"Our goal is to fix this business once and for all to position ourselves to win in the long-term," he added.