11:15 31-07-2014
MAIN Russian
About us On-line subscription
KazakhstanTajikistanUzbekistanKyrgyzstanTurkmenistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
General Motors may report first quarterly loss since 2009

Bishkek (AKIpress) - General-Motors General Motors may report its first unprofitable quarter in four years, largely due to the estimated $1.3 billion cost of its ignition switch recall, but it remains profitable in North America aside from one-time accounting provisions, USA Today reported.

So far U.S. car buyers aren't fleeing GM dealerships despite the ignition switch defect affecting 2.6 million recalled small cars, mostly from the 2003 through 2007 model years. The defect has been linked to at least 31 crashes and 13 deaths.

But GM sells more vehicles in China, the world's largest auto market, than in the U.S. Despite the recall, the automaker's U.S. sales rose 4% in March from a year ago.

Setting aside one-time accounting charges GM expects “solid core operating performance” for the first three months of 2014. But the $1.3 billion charge for a series of recalls, including the defective ignition switches, and a $400-million charge reflecting a devalued Venezuelan currency could eclipse global operating profits.

The automaker has recalled nearly 7 million vehicles so far in 2014, including its new full-size pickup trucks to fix a transmission oil line.

Earlier this week, the company asked a bankruptcy judge in New York to uphold a provision in GM's 2009 restructuring that protected it from product liability lawsuits. The automaker contends it can't be sued for the declining value of defective cars covered by the ignition switch recall because those defective parts were purchased by “Old GM”, an entity that was left in bankruptcy when “New GM” emerged in July 2009.

With more than $20 billion in cash as of December 31, GM likely can absorb current and future legal and regulatory costs.

Yet another issue that may impact the first-quarter results is that sales of its profitable fullsize pickup trucks have lagged expectations in recent months. But GM executives have said the pickups profits remain robust because Chevrolet and GMC are not discounting the Silverado and Sierra as some competitors are doing.


Twitterfacebookprint
10:55 24.04.2014
LATEST NEWS
11:02 25 dead, 160 missing after landslide creates havoc in Pune village10:55 Deportation of Mukhtar Ablyazov's wife to Kazakhstan illegal: Italian Supreme Court of Cassation10:45 Shortage of water affects harvest in Kyrgyzstan10:35 Kashagan contractors to pay Kazakhstan $30-mln compensation per quarter due to production delays10:25 Kashagan may resume operation in H1 2016: Oil and Gas Minister10:22 SCO not to involve into military aspects in Afghanistan – Russian Foreign Minister10:21 Google plans to implement Street View project in Kyrgyzstan10:17 Argentina heads into default as debt talks fail10:08 Islam Karimov meets with Commander of US Central Command in Tashkent09:58 Kazakhstan lifts ban on oil import from Russia09:49 Foreign Ministers of Kyrgyzstan, Russia discuss bilateral ties in Dushanbe09:47 Putin and Nazarbayev talk over cooperation issues09:44 SCO Foreign Ministers Council session starts in Dushanbe09:38 Construction resumption of bypass Kok-Tash – Ak-Sai – Tamdyk road remains obscure – Batken governor’s office09:34 Tajikistani, Uzbekistani FMs discuss bilateral cooperation09:26 President of Tajikistan, Russian FM discuss prospects of bilateral cooperation09:17 Law enforcers should make legal evaluation of protest conducted by mini-bus drivers in Bishkek – Anti-Monopoly Agency08:58 Issyk-Kul region to conduct Apricot Festival08:48 Government plans to allocate 5 bln som annually for leasing of agricultural machinery08:26 Agriculture Ministry suggests establishment of two logistics centers in Bishkek, Osh
Astana
+19° C
Ashgabat
+32° C
Bishkek
+25° C
Dushanbe
+27° C
Tashkent
+31° C
exchange rates
 
69.35
51.75
8.37
1.45
245.93
183.53
29.74
5.14
6.61
4.96
0.80
0.14
3161.09
2332.24
377.32
65.98
3.83
2.85
0.46
0.08

© AKIpress News Agency - 2001-2014
Use of the AKIpress.com materials must be accompanied by a hyperlink to www.akipress.com
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75