GM is in the middle of a restructuring programme after losing billions
|
General Motors has become the latest victim of the US sub-prime mortgage lending crisis.
Its GMAC finance arm made a loss of $305m (£152m) in the first three months of the year because of charges taken at its housing finance unit.
GM sold 51% of GMAC to a group led by Cerberus Capital Management last year.
GMAC's losses offset improvements at GM's automotive operations, leaving three month net profits at $62m, down from $602m in the same period of 2006.
34,000 jobs cut
Toyota overtook GM as the world's biggest car maker earlier this year.
GM is in the middle of a restructuring process that will involve cutting more than 34,000 jobs and closing 12 plants.
The firm lost more than $10bn in 2005 and another $2bn in 2006.
Many lenders have been hit by the problems facing sub-prime lenders, which provide mortgages to people with poor credit ratings.
Home
~RS~q~RS~~RS~z~RS~13~RS~)
BBC NEWS CHANNEL
News services
E-mail this to a friend
Printable version
