GM announces third consecutive year of losses

General Motors today announced its third consecutive year of losses in 2007. Compared to 2006 losses of $2bn, 2007 losses amount to $38.7bn! In the year 2007 there were only 161 companies worldwide with revenues higher than that figure. The entire Tata Group had revenues to the tune of $29bn in 2006-07. Kind of puts things into perspective, doesn't it?

The figure, however, is inflated by a special charge related to the valuation of deferred tax assets and therefore cannot be taken at face value.

The company only expects a real push for earnings in around 2010-2011. Earlier, GM just about pipped Toyota to the post in terms of total number of vehicles sold in the year, maintaining its position as the largest vehicle manufacturer in the world by volumes sold. GM claims to have sold 9.367m cars in 2007. While Toyota first announced sales of 9.37m cars, the figure was later revised to 9.366m. Too close to call, really!


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