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GM profit drops

Wednesday, October 30, 2013 - 01:14

Oct. 30 - Earnings fell sharply at GM, but the automaker beat forecasts, shrank European losses and boosted revenue in North America with new models. Fred Katayama reports.

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Strong sales of Chevy cars and trucks and new models like the Silverado helped drive GM's global quarterly revenue higher as GM worked to refresh its lineup of vehicles. In Europe, GM more than halved its operating loss and gained market share. It says it's now on track to break even in that region by the middle of this decade. And sales of Buicks helped grow its market share in China Share buybacks and taxes depressed its net income, causing it to fall 53 percent in a quarter where Ford and Chrysler boosted their pretax profit. But GM managed to beat Wall Street's expectations, sending its stock higher at the start of trade. General Motors is bouncing back from its bankruptcy, and it's hoping to shed the "Government Motors" nickname that it acquired when the government bailed it out four years ago. The Treasury plans to sell its remaining shares of GM by April. Its bailout fund has booked a $9.7 billion loss. But GM still has a ways to go. Its international profit was more than halved, its U.S. market share slipped a bit, its operating profit lags Ford, and it has yet to regain its crown as the world leader in auto sales.

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GM profit drops

Wednesday, October 30, 2013 - 01:14