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Restructuring Costs Drive Up GM's Quarterly Loss

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Restructuring Costs Drive Up GM's Quarterly Loss

Business

Restructuring Costs Drive Up GM's Quarterly Loss

Restructuring Costs Drive Up GM's Quarterly Loss

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General Motors — thought until recently to be on the mend — reported a loss of $3.25 billion in the first quarter. But that number is a little misleading. When one-time charges related to the company's ongoing restructuring are factored out, the loss is more like $350 million. A two-month-long strike by workers at a key parts supplier has affected production at 30 GM plants. The company, which still vies with Toyota for the title of world's largest automaker, made money on its overseas operations.

STEVE INSKEEP, host:

If you're an executive at General Motors, you can at least say today that the bad news is not quite as bad as it seems. GM was thought to be on the mend until recently, but it produced a loss of three and a quarter billion dollars in the first quarter, three and a quarter billion dollars. Still, that headline is a little misleading. If you factor out one-time charges related to the company's restructuring, the loss was still a loss, but more like $350 million, much smaller.

The automaker has been hurt by a two month strike by workers at a key parts supplier which has affected production at dozens of plants across the country. GM still vies with Toyota for the title of world's largest automaker, and it actually made money on overseas operations, which underlines that it is still losing substantially in North America.

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