General Motors today reported a $1.6 billion loss in the third quarter as the world's biggest carmaker took a hit from slipping US market share and Hurricane Katrina. The loss of $1.92 per share, excluding one-time items, was far wider than the deficit of 87 cents per share expected by Wall Street.
Revenues rose over 5% to $47.2 billion in the July-September period.
The announcement came as GM unveiled a major reorganisation including some 25,000 job cuts, plant closings and a deal with the US-based United Auto Workers to cut billions of dollars in health care costs.
'Today we are announcing a significant update on our plan to address our health-care burden, which is the cornerstone of our efforts to reduce structural costs by a $5 billion run rate by the end next year,' GM chairman and chief executive Rick Wagoner said.
'These actions represent an acceleration of the pace and scope of our North American turnaround plan,' he added.
The big drag on GM's results came from GM North America, which posted a loss of $1.6 billion in the quarter, due to 'lower production volumes, continued increases in health care costs, higher material costs, and a shift in vehicle mix away from full-sized sport utility vehicles.'
