General Motors Corp. (GM) announced its preliminary fourth quarter and year end financial results. GM reported a net loss of $9.6 billion for the fourth quarter of 2008 and a net loss of $30.9 billion for the calendar year. The company noted that the results reflect the current global economic crisis, decline in consumer confidence, and “industry-wide collapse in vehicle demand.” GM’s press release also noted that it anticipates receiving a “going concern” opinion from its independent external auditors and that “GM and its auditors must determine whether there is a substantial doubt about GM’s ability to continue as a going concern.”
This announcement comes two weeks after GM filed its long-term restructuring plan with the Treasury Department—as required under the terms of the $13.4 billion emergency loan from Treasury in December issued as part of the Troubled Asset Relief Program—and request for assistance from foreign governments. GM also received $884 million from Treasury in late January for participation in a rights offering by its subsidiary, GMAC Financial Services (GMAC). GMAC was approved as a bank holding company in December 2008 and has received $5 billion in assistance from Treasury.