GM reports $8.6 billion loss
General Motors reported a 2005 calendar-year loss of $3.4 billion dollars far surpassing most analysis expectations. When you add in special items and losses from other divisions, GM reported a loss of $8.6 billion. The large losses were driven by poor performance in North America, which was partially offset by improved results in Europe, Latin America, Africa, and the Middle East.
"2005 was one of the most difficult years in GM's history, driven by poor performance in North America," GM Chairman and Chief Executive Officer Rick Wagoner said. " It was a year in which two significant fundamental weaknesses in our North American operations were fully exposed -- our huge legacy cost burden and our inability to adjust structural costs in line with falling revenue. Our results were also dramatically and adversely affected by charges for restructuring and matters associated with Delphi Corp.'s Chapter 11 filing.
