▲ Up
 
05:16 31-01-2015
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
17:35 No universal calculation parameters for comparison of shadow economies of different countries exist – President’s Administration17:21 Economy Ministry proposes to adopt list of goods to be exported and imported under license17:19 Tajikistan, WB discuss prospects of cooperation in agricultural sector17:12 10 of 22 MP candidates fail Tajik language test17:02 Uzbekistan takes part in food festival in India16:58 Kids in one of children institutions claim they were photographed naked in shower and toilet: expert16:32 Balloonists surpass world distance record16:31 Kazakhstan to allocate $325.3 million for spring sowing campaign in 201516:22 UNISDR ready to assist Kyrgyz Ministry of Emergency Situations - Fengmin Kan16:16 Kyrgyz delegation to PACE winter session in France meets with parliamentary delegations of several countries16:14 Tajik FM, Chairman of OSCE Office in Dushanbe discuss cooperation issues16:06 Kazakh language to switch to Roman alphabet - Ministry15:58 Tajik border law enforcement agencies complete risk analysis, profiling and management training course15:57 World Bank to allocate Kyrgyzstan $24 million to provide electricity to remote and less developed areas15:53 UNHCR aims at ending statelessness worldwide by end-202415:43 HRW report voices concern over rights violations15:40 New Saudi King announces major government shake-up15:35 Islam Karimov turns 77 today15:32 Kyrgyz Ambassador, International Islamic Charitable Organization discuss human development project implementation15:24 Japan to invest $38 billion in Uzbekistan
Astana
-12° C
Ashgabat
+3° C
Bishkek
0° C
Dushanbe
+11° C
Tashkent
+9° C
exchange rates
 
67.52
59.81
9.62
0.87
208.19
184.45
29.54
2.67
6.05
5.37
0.86
0.08
2830.23
2436.16
389.63
38.43
3.96
3.50
0.56
0.05

© AKIpress News Agency - 2001-2015. All rights reserved
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