Feeling the effect of the high price of gasoline and rapid changes in consumer preferences, General Motors posted a massive second quarter loss of $15.5 billion on Friday, August 1.

A year ago GM saw a $784 million profit, but for the last quarter the value of the company's stock dipped $27.33 a share. All calculations of the loss exceeded those predicted by industry analysts.

On the disclosure of the figures, GM stock fell another 7.5% in early trading, even though the auto operations managed to pull out revenue totaling $37.7 billion, down from the $44.6 billion of 2007.

GM sales in the United States were hardest hit, down 21%. The company named cutbacks in labor, strikes, and reduction in vehicle output as responsible for the losses.

In a statement, GM Chief Executive Rick Wagoner said, "As our recent product, capacity and liquidity actions clearly demonstrate, we are reacting rapidly to the challenges facing the U.S. economy and auto market, and we continue to take the aggressive steps necessary to transform our U.S. operations."

Although the company has consistently lost money for five quarters Wagoner said, "We have the right plan for GM, driven by great products, building strong brands, fuel-economy technology leadership and taking full advantage of global growth opportunities."

Although it is small comfort, GM is not the only American automaker staggering under the current economy. Last week the Ford Motor Co. reported the greatest quarterly loss in its entire 105-year history, further signaling that major changes are ahead for the automotive industry.