General Motors reports losses of $722 millions
General Motors’ stock fell 54 cents, and now stands at $26.58. The world’s biggest automaker blamed rising costs in North America and a loss at its partially owned GMAC finance unit, for the fourth quarter’s loss of $722 millions.
Last year, General Motors Corp. posted a fourth quarter profit of $950 millions. The Detroit-based automaker’s sales fell to $47 billions.
GMAC International Finance, the former financing arm of General Motors Corp. lost $2.3 billion last year as record U.S. home foreclosures led to an increase in bad loans and auto-lending profitĀ declined, said the Detroit based company.
In terms of its results, they were overall a bit weaker than expected and it looks like it will be a true challenge for GMAC to achieve its goal of being profitable in 2008. However, lower interest rates will help offset any higher borrowing spreads.
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