GM posts record loss of $38.7 billion
DETROIT -- General Motors Corp. today announced a 2007 net loss of $38.7
billion, almost of which came from a massive tax write down the
automaker took last fall.
GM's net loss from continuing operations was $23 million, compared to a
profit of $2.2 billion a year earlier. The automaker said the losses
were driven by red ink at GMAC financial services, which it half owns.
GM's automotive operations generated revenue of $178 billion in 2007, a
$7 billion improvement over 2006, as GM continues to grow in the world's
emerging markets. GM made $181 billion in revenue in 2007, compared with
$206 billion in 2006.
"We're pleased with the positive improvement trend in our automotive
results, especially given the challenging conditions in important
markets like the U.S. and Germany, but we have more work to do to
achieve acceptable profitability and positive cash flow," CEO Rick
Wagoner said in a statement.