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General Motors Corrects Third-Quarter Loss Reports

General Motors Corp., a leading world automaker, recently announced a correction regarding its third-quarter net loss reports. It stated that its loss was US 91 million dollars, US 24 million dollars less than what was stated on October 25th, 2006. This is due to the loan sales not previously disclosed at its finance unit. The net loss was reduced to 16 cents a share from a reported loss of US115 million dollars, or 20 cents a share, GM said in a quarterly US regulatory filing.

GM explained last month that the third-quarter loss was related to costs involving the closing of factories, the buying out of union workers and the trimming of health-care expenses. General Motors said it earned US 529 million dollars, or 93 cents a share, excluding those costs. The automaker did not revise the adjusted numbers in the recent filing, and reiterated that it has pared its estimate for spending on retirement costs for former GM workers at bankrupt Delphi Corp., the auto-parts company spun off in 1999.

GM CEO Rick Wagoner is restructuring operations after a US10.6 billion dollar loss last year. He must also show improvement after rejecting an alliance with Renault SA and Nissan Motor Co. This alliance was proposed by GM?s largest individual investor, Kirk Kerkorian. GM explained in the filing that one of its biggest risks is being placed at a competitive disadvantage by a competitor?s collaboration. With the adjustment, the consolidated loss at GM?s General Motors Acceptance Corp. finance unit narrowed to US 325 million dollars from US 349 million dollars reported last month.