GM faces biggest loss as CEO touts comeback plan

By Stephen Carville
01 August 2008 @ 10:55 am EDT

General Motors Corp. reported its biggest loss ever of $15.5 billion from May through June as the company's chief executive says the company is following its plan to regain profits.

General Motors chairman and CEO Rick Wagoner listens during a news conference in Detroit, Tuesday, July 15, 2008 with company Product Development Vice Chairman Bob Lutz, right. General Motors Corp. reported its biggest loss ever of $15.5 billion from May through June as the company`s chief executive says the company is following its plan to regain profits. (AP Photo/Carlos Osorio)

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The company said it had anticipated a "significant" loss due in large part to worker strikes, payoffs to encourage hourly union workers to retire or leave the company, and reducing the number of trucks it makes, among other actions.

The company also showed concern about the struggling U.S. economy, which is contributing to the companies woes.

In its report, GM reiterated plans announced during the last two months meant to help the company get back on track.

Initiatives at GM include reduced truck production, and a new global small car program for its Chevrolet brand and a new Chevrolet Aveo compact car, one of its better selling autos amid the consumer shift away from large vehicles.

The company is also considering the sale of its military-vehicle-inspired Hummer brand.

General Motors' chief executive Rick Wagoner said the company's recent actions "clearly demonstrate" the company is reacting to the challenges the it faces, vowing to take "aggressive" additional steps.

He said the company's management had the "right plan" for the company.

"We have the right plan for GM, driven by great products, building strong brands, fuel-economy technology leadership and taking full advantage of global growth opportunities," he said in the company's earnings press release.

The Detroit, Michigan-based automaker said the loss is $27.33 per share for the second quarter, including charges and special items. The firm earned $784 million, or $1.37 per share from continuing operations in the same quarter.

Total revenue globally was $38.2 billion, down from $46 billion in the same quarter a year ago.

The company's biggest losses were in the North America division. Outside of North America, the company saw sales rise $1.7 billion to $20.8 billion.