US car maker reveals record losses | News | Al Jazeera

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

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    America's Guns: Secret Pipeline to Syria

    America's Guns: Secret Pipeline to Syria

    How has the international arms trade exacerbated conflict in the Middle East? People and Power investigates.

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.