April 20, 2005
GM’s automotive operations lose $1.3 billion in first quarter
Detroit, Michigan – GM’s automotive operations reported a loss of $1.3 billion in the first quarter of 2005, compared with earnings of $561 million in the year-ago quarter.
GM North America accounted for this weak performance, reflecting lower sales and production volumes, a tougher pricing environment, an unfavourable sales mix, and a continuing, large health-care burden.
GM’s market share in North America was 25.2 percent in first-quarter of 2005, down from 26.3 percent in the year-ago period.
“While most of our business units exceeded expectations, the results at GM North America (GMNA) were clearly disappointing,” said GM Chairman and Chief Executive Officer Rick Wagoner. “We have well thought-out plans to address GMNA’s poor performance, starting with aggressive product introductions this year, value-focused marketing initiatives, and further reductions in our cost structure, where the greatest need is to address the challenging health-care cost situation.”
“We clearly have the need to do a much better job on both the revenue and cost side of our business,” Wagoner added. “Our revenue strategy is clear and has already begun to play out. On the cost side of the business, we continue to make progress in most key activities, but we need to accelerate our efforts on the challenging U.S. health-care situation.”