22:31 02-10-2014
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
17:48 Turkey MPs to vote on Iraq/Syria deployment17:41 Households choose most environmentally inappropriate ways to dispose waste in Kyrgyzstan – National Statistical Committee17:31 Power cut off in Batken district due to excessive electricity consumption by population17:27 Wonga forced to write off £220 million of debt17:25 PEN International adopts resolution on release of Kyrgyz human rights defender serving life sentence17:22 Jehovah's Witnesses community fined in Almaty region17:12 Kyrgyz MP concerned about meetings held with youth by NGO holding similar meetings in Ukraine prior to unrest16:58 PM Otorbayev gives rebuke to government members over improper work16:49 International Judo Tournament for Tajik President's Cup to start in Dushanbe16:41 3 thieves have stolen 30 phones in 40 sec in a store in Astana, authorities say16:40 Several gross violations of labor legislation found at Zhongda oil refinery16:38 Tajik President to make working trip to south of country next week16:24 Surfer loses arm in shark attack in Australia16:19 Growth of international reserves of Kazakhstan in H1 2014 equals 12.2% - National Bank16:14 PEN International suggests translation of modern works by Kyrgyz authors into foreign languages16:06 Renter at Bishkek shopping center fires shots into air during clashes with security16:04 Kyrgyz Deputy Foreign Minister, Uzbek Ambassador discuss next talks on border delimitation, demarcation16:01 80th PEN International Congress members call to free 3 writers detained in Kyrgyzstan, China, Kazakhstan16:00 Investors from Indonesia, China ready to launch textile plant, oil refinery in Jalal-Abad15:39 Dry port construction in Almaty region to cost 74 billion tenge
Astana
+13° C
Ashgabat
+27° C
Bishkek
+14° C
Dushanbe
+25° C
Tashkent
+23° C
exchange rates
 
68.42
54.30
8.82
1.37
229.21
181.90
29.64
4.58
6.33
5.00
0.81
0.13
3122.57
2363.47
385.06
61.53
3.59
2.85
0.46
0.07

© 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