GM sees revenues drop by more than a third

General Motors has revealed it has already spent $5.2bn (3.6bn) of bailout funds and has seen its revenue shrink by 34.2% in the first two months of the year.

General Motors has revealed it has already spent $5.2bn (£3.6bn) of bailout funds and has seen its revenue shrink by 34.2% in the first two months of the year.

GM is currently asking the US treasury for as much as $16.6bn (£11.6bn) in additional US aid.

Its latest restructuring plan, submitted to the US government last week, sees around 46,000 jobs (20,000 in the US), five additional factories, the Saab, Hummer and Saturn brands, over 2,100 US dealers all under threat.

Marketing for European brands has already been separated by the carmaker.

The company recorded a net loss of $9.6bn (£6.7bn) in the fourth quarter of 2008 compared with a loss of $1.5bn (£1bn) a year earlier.

It also revealed an operating loss of $5.9bn (£4.1bn), and a decline in revenue to $30.8 bn (£21.6bn) from $46.8bn (£32.8bn).

GM’s chief executive Rick Wagoner, says: “2008 was an extremely difficult year for the U.S. and global auto markets. We expected these challenging conditions will continue through 2009, and so we are accelerating our restructuring actions.”

The carmaker has already received $13.4bn (£9.4bn) so far and says the request reflects a market that is deteriorating more rapidly than anticipated.

GM has already announced it wants to save $1.2bn (£804m) in Europe this year and is considering cost-cutting measures, including the possible closure or spin offs of several its European factories.

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