Detroit, US - The United States' largest automaker General Motors (GM) announced Wednesday in Detroit a profit loss of 3.3 billion dollars for the first quarter 2008. With the third straight quarter of losses, the company also reported that revenues for period sank by nearly 2 per cent to 42.7 billion dollars.
Analysts however had expected a great plunge into red ink.
In 2007, the motor company had seen a loss of only 42 million dollars, but in the past three years, GM has suffered total losses of 50 billion dollars due particularly to weakness in the US market.
The company also blamed high liabilities from its financing subsidiary as well as the insolvency of former distribution subsidiary Delphi.
Further weight pulling down income were restructuring costs and negative tax effect in Europe.
The US company is in a neck-and-neck race with Japanese rival Toyota for the most sales worldwide. GM in the first quarter sold 2.25 million cars, somewhat lower than in the previous year, while Toyota saw its turnover grow during the period, and was profitable as well.
On Monday, GM announced it was set to lay off 3,500 workers as it prepared to reduce production of pickup trucks and heavy four-wheel vehicles due to falling demand.
