by Editor News
General Motors profit in the fourth quarter came at $0.2 billion in comparison to the loss of $ 5.2 billion in last year’s reports.
The American multinational corporation General Motors reported the better than expected quarterly profits on Wednesday following the cost-cutting done by the company and some powerful sale of higher priced vehicles from the United States to China.
General Motors profit in the fourth quarter came at $0.2 billion in comparison to the loss of $ 5.2 billion in last year’s reports. This happened due to a one-time accounting item tied to US Tax reform.
The sales of the automobiles fell both in China as well as North America, the two most important markets of General Motors. The effect was offset by strong sales of higher priced trucks in the United States. The revenues rose 1.8 per cent to 34.8 $ billion.
The automaker reached strong sales in China of the luxury Cadillac line despite a 25.4 per cent dive in the overall sales of vehicles in the country.
The chief executive of General Motors Mary Barra commented on this by saying, "GM delivered another strong year of earnings in a highly volatile environment in 2018. We will continue to make bold decisions to lead the transformation of this industry and drive significant shareholder value."
General Motors lowered the production of vehicles in China in the last quarter and is compensating the cost in the first quarter.
Dhivya Suryadevara, the Chief Financial Officer of General Motors said that the results followed a "flawless" launch of trucks in the United States and pledged a continued "intense focus on costs." She said there were some "early signs of stabilization" in the Chinese economy following weakness and that the company still planned 20 new launches in China in the second half of this year.
Following the results, the company had announced the bonus up to $10750 for more than 46,500 hourly employees. Even the shares of General Motors rose 2.6 per cent to $40.31 as Wall Street open on Wednesday.
General Motors also updated on its staffing since a big cost-cutting plan in November which was followed by the shutting of seven plants with five plants in North America. There were around 2,800 employed affected by the decision and nearly 1,200 were eligible to retire. Nearly 950 workers from the locations in Michigan and Ohio have accepted the transfer offers to other locations of the GM in the US. The reorganization will also result in involuntary layoffs to about 4,000 GM salaried workers, a person familiar with the matter told AFP last week.
"When GM delivers good business results, our eligible hourly employees share in the company's success," Barra said. "To build on our performance, we must continue working together to deliver strong safety, quality and productivity results."
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