Encouraging losses for GM April 21, 2006
Although General Motors has recorded its sixth consecutive quarterly deficit, the world’s biggest carmaker by volume was upbeat after its net loss of $323 million represented a considerable improvement over the $1.25 billion loss in the same period last year.
The US automotive giant hailed the results, suggesting that the reduction of losses, shows that its restructuring initiatives are finally having an impact.
Among the measures being undertaken, GM plans to cull around 30,000 jobs in North America and close 12 plants by 2008. Alongside this, rumors continue to circulate of some major European closures as the company looks to further cut costs.
The car maker also noted its recent agreement with its largest labor union, the United Auto Workers, which should result in an immediate 25% reduction in its hourly retiree health-care liability, or about $15 billion.
Despite the encouraging signs analysts continued to warn of rising fuel costs, Delphi settlements and a high level of inventory which may yet harm the company's recovery.
- Posted in : Uncategorized, GM
- Author : arnold
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