Another horrible quarter for the world’s biggest car maker. General Motors posted an almost ten billion euro quarterly loss as its North American sales dropped by 20%.
Close to six billion of that was from one off charges, including the cost of paying off people as the company slashes its workforce, losses from strikes and over one billion euros from plummeting values for big, gas-guzzling, four-wheel-drive vehicles which GM had to sell when their leases ended.
Reacting to record fuel prices, American drivers are downsizing and General Motors has said it will concentrate on its more fuel efficient brands and turn away from bigger so-called sport utility vehicles and pickups. It is also considering selling its Hummer division.
After losses totalling 33 billion euros over the previous three years and getting on for 12 billion so far this year, GM is focusing on freeing cash through cost-cutting, sales of assets and new borrowing.
GM in Europe was profitable and made 13 million euros and its Latin American-African-Middle East division posted a 286 million euro profit. The Asia Pacific region lost 104 million euros.