Summary - At General Motors, Loss Reduction Is a Good Start

David Welch's article, At General Motors, Loss Reduction Is a Good Start discusses the financial stability of the automotive manufacturer General Motors. GM CEO Frederick A. "Fritz" Henderson will be giving the first update on November 16, 199, on the company's finances since it emerged from bankruptcy. Henderson is expected to announce that GM will have had much-improved third-quarter earnings and cash flow. Unnamed sources familiar with the company's books say that the company will still be in the red but its losses will have been significantly cut. These same sources indicate that GM will show better cash flow due to lower costs and better net pricing on its cars. Joseph Phillippi, principal of AutoTrends, a New Jersey consultancy, indicates that while GM is not fully stabilized, it is stabilizing and that the company's new cars are doing well. However, it should be noted that GM's third-quarter financials could be aided by the fact that many of its manufacturing plants were shut down while the company was it bankruptcy. At Henderson's November 16 presentation, it is rumored that he will be making three different presentations. One will detail the company's third-quarter of 2008, another will detail the bankruptcy and old GM, and the last one will discuss the company's re-emergence from bankruptcy.