GM loses $3 bln in third quarter due to Opel-Vauxhall sale

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General Motors reported on Tuesday a net loss of 3 billion US dollars in the third quarter this year despite robust results in North America and China.

The loss was driven primarily by a charge of 5.4 billion US dollars resulting from the sale of Opel-Vauxhall in Europe, which was taken over by French automaker PSA.

According to GM's third-quarter report, the huge Opel-Vauxhall-related loss included approximately 4.3 billion US dollars of unrealizable deferred tax assets, 1.5 billion related to pensions and other net charges for working capital adjustments and costs to support the separation of operations.

The Opel logo is seen on a car wheel on October 8, 2017 in Bydgoszcz, Poland. /VCG Photo

The Detroit-based automaker underlined that its operations in North America, South America, China and elsewhere in Asia were all profitable for the first time since the fourth quarter of 2014.

GM delivered a total of 781,056 vehicles in its home market, with a remarkable 25-percent increase in retail crossover sales.

In China, GM reported it delivered 982,311 vehicles, setting a third-quarter record, up 12.3 percent from the third quarter of 2016. GM contributed the strong performance in China to sharply increased sales of Baojun and Cadillac.

“Solid performance in all operating segments led to a very good quarter. With an aggressive vehicle launch cadence through the fourth quarter and an ongoing intense focus on costs, we project strong results through the end of the year,” said Chuck Stevens, Executive Vice President and CFO of GM.

Source(s): Xinhua News Agency