Ford, GM post losses large and larger

DETROIT, Nov. 7 (UPI) -- General Motors Corp. Chairman and Chief Executive Officer Rick Wagoner said further federal help was needed for the automotive industry.

In a financial report released Friday, GM said it posted a loss of $2.629 billion in the third quarter. In the statement, Wagoner said the government's effort to thaw frozen credit markets was "an essential first step."

"But, further strong action is required," he said.

GM's net losses amounted to $4.45 per share, while Ford Motor Co., which reported a net third quarter deficit of $129 million Friday, lost $0.06 per share.

At GM, third quarter revenues fell from $43.7 billion in 2007 to $37.9 billion in 2008. The company expended $6.9 billion in cash during the quarter.

Wagoner lamented the "abrupt closure of credit markets," and consumer spending, which "fell dramatically," he said.

Ford President and CEO Alan Mulally sounded a more optimistic note. "We have a strategy that is broad and specific enough to handle the dramatic changes in today's environment," he said.

"We were fortunate to have gone to the markets at the right time two years ago to obtain significant liquidity to implement our plan and invest in the new products that will secure our future," said Ford's Executive Vice President and Chief Financial Officer Lewis Booth.