US car maker reveals record losses

General Motors workers to be offered voluntary redundancies and early retirement.

    GM workers went on strike last year over
    healthcare costs [AFP]

    'Positive improvement'
     
    For the fourth financial quarter the company posted a net loss of $722 million, or $1.28 per share, compared with net income of $950 million, or $1.68 per share, the previous year.
     
    General Motors also posted combined losses of almost $1.7 billion in North America and Europe that wiped out gains of $437 million from operations in emerging markets in Asia and Latin America.
     
    The company's revenue has fallen despite an increase of three per cent in the number of cars sold.
     
    Rick Wagoner, chairman of GM, said the weak US economy and high commodity prices had hurt turnaround efforts in North America.
     
    He added that a decision to reduce low-profit sales to daily rental companies by 110,000 in 2007 also affected US sales.
     
    "We're pleased with the positive improvement trend in our automotive results, especially given the challenging conditions in important markets like the US and Germany," he said in a statement.
     
    "[However] we have more work to do to achieve acceptable profitability and positive cash flow."
     
    In September last year more than 73,000 GM workers went on strike over healthcare costs, returning to work after a deal was struck between the company and the United Auto Workers union.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    The woman who cleans up after 'lonely deaths' in Japan

    The woman who cleans up after 'lonely deaths' in Japan

    When somebody dies lonely and alone, Miyu Kojima steps in to clean their home and organise the mementos of their life.

    Putin and the 'triumph of Christianity' in Russia

    Putin and the 'triumph of Christianity' in Russia

    The rise of the Orthodox Church in Russia appears unstoppable, write filmmakers Glen Ellis and Viktoryia Kolchyna who went to investigate the close ties between the church and Putin.

    The chill effect: Is India's media running scared?

    The chill effect: Is India's media running scared?

    Much of India's media spurns a scoop about the son of PM Modi's right-hand man. Plus, NFL as platform for race politics.