Business

GM shares dive on profit fall and weak outlook

General Motors Corp

Last Updated at 20 Oct 2017, 20:01 GMT *Chart shows local time General Motors Corp intraday chart
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Shares in General Motors have fallen 11% after the company reported a fall in profits and a weak outlook.

Net income came in at $1.7bn for the third quarter of the year, down 17.6% from the same period last year, hit by losses in Europe and South America.

The carmaker predicted that profit in the current quarter would be unchanged from a weak fourth quarter in 2010.

GM said it would cut costs and simplify the company in order to improve its profitability.

Its rival, Ford, posted profits for the third quarter that were almost as high as GM's, despite sales being 10% lower.

GM chief executive Dan Akerson said it had been a "solid" quarter, but added that "solid isn't good enough, even in a tough global economy".

"Our overall results underscore the work we have to do to leverage our scale and further improve our margins everywhere we do business."

The company warned it would not be able to meet its target of breaking even in Europe this year.

GM emerged from bankruptcy in 2009 after a $52bn taxpayer-funded bailout. The US Treasury still owns 32% of GM's ordinary shares.

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