GM Lost $8.6 Billion In 2005

General Motors said Jan. 26 it lost $8.6 billion in 2005. "2005 was one of the most difficult years in GM's history, driven by poor performance in North America," GM chief executive Rick Wagoner said in a statement. "It was a year in which two significant fundamental weaknesses in our North American operations were fully exposed -- our huge legacy cost burden and our inability to adjust structural costs in line with falling revenue. Our results were also dramatically and adversely affected by charges for restructuring and matters associated with (former parts unit) Delphi Corp.'s Chapter 11 (bankruptcy) filing."

The loss amounted to $15.13 a share, including special items, compared with net income of $2.8 billion, or $4.92 per share, in 2004. The figures included a loss of $4.8 billion in the fourth quarter, as well as hefty restructuring charges. "In order to improve financial results in 2006 and 2007, we are moving quickly to implement several important actions that will address these weaknesses in North America," Wagoner said. "And we have a good line of sight on the steps we need to take to further reduce structural costs on a global basis that will position GM for long-term success."

Revenue was $192.6 billion in 2005, compared with $193.5 in 2004. Over the past quarter, revenue fell to $51.2 billion from $51.4 billion in the comparable period of 2004.

Copyright Agence France-Presse, 2006

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