NYT: G.M. Reports Big Losses as Its Woes Grow ($8.6 billion in 2005)

[DeepModem Mom]

G.M. Reports Big Losses as Its Woes Grow
By MICHELINE MAYNARD and VIKAS BAJAJ
Published: January 26, 2006


DETROIT, Jan. 24 — The General Motors Corporation reported today that it lost $8.6 billion in 2005, when it kicked off restructuring efforts meant to help it reverse a string of losses and face relentless industry competition.

In North America, G.M. lost more than $5 billion on its automotive operations, as sales of sport utility vehicles fell, advertising expenses rose and the company faced even higher costs for heath care expenses.

Much of G.M.'s annual loss came in the fourth quarter, when the automaker lost $4.8 billion.

The loss for 2005 was G.M.'s largest since 1992, when the company's management was ousted in a boardroom coup and G.M. was in danger of seeking bankruptcy protection. That year, G.M. lost $23.5 billion, in part because of accounting requirements that companies estimate future costs for their retirees.

In contrast to the 2005 loss, G.M. earned $2.8 billion in 2004....


http://www.nytimes.com/2006/01/26/business/26cnd-gm.html?hp&ex=1138338000&en=a985422a91f7c143&ei=5094&partner=homepage

[scarface2004]

1. good...

that means i made over $8 billion more than gm last year..i am the man!

[DeepModem Mom]

4. Clever! nt

[cliss]

2. It's funny.....Bush came out and

pondered whether he should "bail them out" over at GM. As if there's $10.00 left for him to give to them, after he's cleaned out the U.S. treasury.

[Dover]

3. Bankruptcy has become just part of business strategy...

not a sign of failed leadership. They WANT to restructure and shed their losses.