GM suffers massive loss in second quarter
General Motors reported a devastating $15.5 billion loss for the second quarter, making April to June the third worst quarter in GM’s history.
The loss included several large one-time charges, but even with the exclusion of such items GM fell short of analyst expectations for revenues and profits.
Some of the larger blows to GM’s bottom line include a $1.3 billion write-off for the declining value of GMAC’s lease portfolio of trucks and SUVs and a $3.3 billion charge for employee buyouts. These extraordinary items combined with an $8.5 billion drop in sales versus the same quarter last year led to the company’s poor results.
It seems as if the stars have aligned against the automakers…GM lost $15 billion, Nissan’s profits shrank 43 percent, and Ford’s July sales were down almost 15 percent.
The only automaker expected to report a sales increase for the month of July is Honda. Sales figures will be released later today.
Tags: ford, general motors, honda, lossRelated Stories
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