Wednesday, July 20, 2005

GM Posts $1.2 Billion Loss In North American Operations

General Motors posted a $1.2 billion loss in its North American operations, and a $286 million loss overall as good news from Europe was dwarfed by major downturns in the U.S.
A highly publicized "employee discount" sales promotion did help boost U.S. sales and increase GM's North American market share to 27.3% in the second quarter, compared to 26.2% in the year-ago quarter. But the financial benefits from those additional vehicle sales were offset by lower production, proportionally fewer sales of high-profit cars and trucks and rising healthcare costs, the Detroit-based company said.
The loss was even worse when ignoring one-time items, totalling $318 million.