GM reports heavy losses as sales fall, costs rise

Mon 4 Aug 2008
LONDON (ShareCast) - US car manufacturer General Motors (NYSE: GM) reported heavy losses in the second quarter due to a fall in sales and higher costs, including those incurred from strikes.

The Detroit-based company behind brands such as Chevrolet and Hummer fell in to losses of $15.5bn in the second quarter compared with profit of $784m in the second quarter of 2007. Revenue slipped to $38.2bn from $46.7bn.

GM said it was taking action to address the weaker figures and continued gloomy outlook for the US car market, including shutting down production at truck plants.

"As our recent product, capacity and liquidity actions clearly demonstrate, we are reacting rapidly to the challenges facing the US economy and auto market, and we continue to take the aggressive steps necessary to transform our US operations," said GM chairman and chief executive Rick Wagoner.

"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."

Source:http://uk.biz.yahoo.com/080801/214/i470v.html