GM posts $15.5 billion loss as sales sputter

By Kevin Krolicki and David Bailey

DETROIT (Reuters) - General Motors Corp (nyse: GM - news - people ) reported a $15.5 billion quarterly loss Friday as North American sales dropped by 20 percent and resale prices for SUVs coming off lease plunged.

GM shares fell as much as 10.6 percent in reaction to the automaker's announcement of the much bigger-than-expected quarterly loss, the third-largest in its history.

The No. 1 U.S. automaker also burned through $3.6 billion in cash as it cut factory output 27 percent and ran down inventory of slow-selling vehicles in its home market.

GM ended the second quarter with $21 billion in cash and $5 billion in undrawn credit. It has since drawn down a secured revolving loan facility by $1 billion.

GM posts $15.5 billion loss as sales sputter....