General Motors posts operating loss of $4.2 billion

General Motors posts operating loss of $4.2 billion

US based automaker GM continues to struggle as they have posted an operating loss of $4.2 billion.

The company further revealed that they burned through $6.9 billion in cash in the third quarter.

GM is now aiming to cut $2.5 billion in capital spending next year. The longer term goal is to free up $20 billion in liquidity through 2009.

GM has been struggling as customers in the US market are now preferring to go for cheaper fuel efficient small cars.

GM lacks a solid presence in this segment of the market. Hybrids and Electric cars are also becoming popular in the USA.

The company said that their revenues in the recent quarter were down to $37.9 billion from $43.7 billion a year earlier.