Wednesday, April 30, 2008

GM Faces $US3.3 billion Lose in the First Quarter of Current Year

US based auto maker General Motors has seen a loss of $US3.3 billion, which is much less than the amount analysts expected in the first quarter of this year. Thanks to the companies booming business in Asia, Europe and Latin America, GM could make up its disastrous US sales. American economy is now going through a rough patch and the other automakers are also facing tough time in American market. However, the good news for GM is that the company gained 12 percent stock on Wall Street.

Sydney Morning Herald reported:

The automaker boosted profits by at least twofold in each of its other three regions. GM's European profit grew by more than 18 times to $US75 million ($A80.47 million), Bloomberg financial news service reported.

The Asia-Pacific region doubled earnings to $US286 million ($A306.87 million) on the strength of South Korean-designed Chevrolet small cars. The Latin America-Africa-Middle East region also doubled, to $US517 million ($A554.72 million).

GM is the world’s largest automaker, but in the first quarter of current year, GM fell behind Japanese automaker Toyota, which shows the US automaker would face a strong challenge from the Japanese automaker in the coming months to hold on leading position in the automobile market.