If you thought the earnings report released this morning by Ford (NYSE:F) was scary, you had better be sitting near a trashcan to hear the news from its cross-town rival, General Motors (NYSE:GM). These figures will make you nauseous.

Really, just one quote from the company says it all.

“Even if GM implements the planned operating actions that are substantially within its control,” the report says, “GM’s estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business.”

The company goes on to say it will take a significant economic turnaround, strong proceeds from an asset sale, and/or government intervention for even a chance at having the cash flow it needs to survive through next year.

It does not look good for the nation’s manufacturing gem.

The Big Three ain’t so big

Just take a look at some of the numbers from the automaker. During the last three months, the GM managed to lose $2.54 billion with revenues of $22.5 billion. GM burnt $6.9 billion in cash just to maintain operations.

On a per share basis, the situation is even worse. Analysts expected earnings per share to come in somewhere around $3.54. Instead, the company tells us it lost $4.45 per share. And without a $4.9 billion accounting gain from some one-time union savings, that figure would have been an unsavory $7.35 per share.

Is your stomach turning yet?

If so, do not even think about looking at the company’s share price… or what is left of it.

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As if Wall Street had not discounted the company’s stock enough over the last year (shares were down more than 85% from last October’s highs at this morning’s bell), investors have slashed another 15% in the minutes after the report hit the wires.

It is easy to believe all hopes of the company’s success have been lost, but there is a sliver of a chance of success. Remember, Nancy Pelosi met with Big Three executives yesterday afternoon and Cerberus is still interested in unloading its cash-heavy stake in Chrysler on GM.

If any deals are made, GM may be able to pull through. Right now, however, it looks like it may take a modern-day miracle to make it happen.

Hidden investment potential?

What does this mean for the nation’s investors? One thing is for sure; it means even more economic uncertainty is ahead.

If GM closes additional plants or even closes its doors, not only will consumer confidence plunge, but tens of thousands of folks will be added to the nation’s unemployment rosters. What is left of the nation’s consumer-based spending will drop even further.

For Ford (NYSE:F) investors that can afford to hang on for the wild ride, it may spell long-term profitability. Remember what I said earlier today: Ford has enough cash to get it through 2010 and into a time when automotive experts believe the industry will rebound.

Invest at today’s prices and you will have a very good shot at long-term profits.

Remember, GM still has a huge share of the market. As that share drops, somebody will pick up the slack. Over the next few years, Ford will be glad to see its competitor’s power diminish.

It is a sad day for Detroit, but the news is certainly no big surprise.

Source: General Motors posts an unprecedented loss