GM profits fall on weakening euro

GM will pay profit-sharing bonuses to staff GM has seen a turnaround in its fortunes since filing for bankruptcy in 2009

US car giant General Motors (GM) has reported a fall in quarterly profits due to weak sales in Europe, where the debt crisis has weighed on the euro.

GM said that net income for the three months to June was $1.5bn (£968m), down from $2.5bn last year.

Net revenue fell to $37.6bn, from $39.4bn in the same period last year.

"The decrease was due almost entirely to the strengthening of the US dollar versus other major currencies," it said.

North America was its strongest market.

In Europe, GM - which owns Vauxhall and Opel - made a loss before interest and tax of $400m, compared to a profit of $100m in the same quarter last year.

GM in North America had a profit before interest and tax of $2bn, down from $2.2bn.

"Our results in North America, our international operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America," said GM chairman and chief executive Dan Akerson.

The euro has been slumping this summer, with Spain and Italy are all in recession amid fears they will need a bailout as well.

The UK, not in the euro but home of Vauxhall, is also in recession.

Earlier this summer, GM announced plans to reduce its pension obligations by $26bn by offering tens of thousands of retiring workers lump-sum payments.

In 2009, the carmaker filed for Chapter 11 bankruptcy protection and received a $50bn bailout from President Barack Obama's administration.

More on This Story

Global Car Industry

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • RihannaCloud caution

    After celebrity leaks, what can you do to safeguard your photos?


  • Cesc FabregasFair price?

    Have some football clubs overpaid for their new players?


  • Woman and hairdryerBlow back

    Would banning high-power appliances actually save energy?


  • Rack of lambFavourite feast

    Is the UK unusually fond of lamb and potatoes?


  • Members of staff at James Stevenson Flags hold a Union Jack and Saltire flag UK minus Scotland

    Does the rest of the UK care if the Scots become independent?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.