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| Version 0 | Version 1 |
|---|---|
| Cost cuts help GM to smaller loss | Cost cuts help GM to smaller loss |
| (40 minutes later) | |
| General Motors (GM) has reduced its losses by more than 90% as its turnaround plan has begun to kick in. | General Motors (GM) has reduced its losses by more than 90% as its turnaround plan has begun to kick in. |
| The car giant lost $115m (£61.3m) in the three months to September 2006, and said that without a string of one-off charges it would have been in profit. | The car giant lost $115m (£61.3m) in the three months to September 2006, and said that without a string of one-off charges it would have been in profit. |
| In the same period a year ago, GM posted a loss of $1.7bn. | |
| Along with US rival Ford, GM has struggled with falling profits and sales in the face of competition from Japanese rivals. | |
| GM has also been accused of being over-reliant upon thirsty sports utility vehicles (SUVs), at a time when fuel prices have soared. | GM has also been accused of being over-reliant upon thirsty sports utility vehicles (SUVs), at a time when fuel prices have soared. |
| 'Encouraged' | |
| In July the firm announced that its second-quarter losses had widened to $3.2bn (£1.7bn) from $987m in 2005, as a result of the expense of implementing its ongoing cost-cutting strategy. | In July the firm announced that its second-quarter losses had widened to $3.2bn (£1.7bn) from $987m in 2005, as a result of the expense of implementing its ongoing cost-cutting strategy. |
| This includes closing 12 plants and cutting more than 34,000 jobs in a bid to cut $9bn from operating costs in 2006. | |
| One-off costs in the quarter included writing down the value of its financial arm, and reorganising its auto parts maker, Delphi. | |
| Chief financial officer Fritz Henderson said that stemming the firm's "cash burn" was an important priority. | |
| He added he was "encouraged" by signs that as fuel prices lowered again, in line with oil coming off its record highs of mid-July, that there had been a move from customers back towards trucks. | |
| "That doesn't mean we're going to take our foot off the gas for our passenger cars," he added. |