GM posts net loss of $6 bln for Q1

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.