By now you've seen the results. While General Motors'
The company's results for the quarter included net income of $62 million, or $0.11 per share, a severe drop from net income of $602 million, or $1.06 per share, in the first quarter of 2006. There were several reasons for the weak quarter, including an $85 million earnings loss in North America, a 68% drop in the earnings contribution from Europe, and a $115 million share of the total $305 million loss wrung up by the GMAC financing unit.
GMAC's loss resulted not from its auto-financing activities -- which weighed in with $605 million in profits -- but from the $910 million hit from mortgage financing. So much for those seers who don't expect subprime woes to spread to the general economy.
But many of GM's problems may still lie ahead. In July, it will begin contract talks with the United Auto Workers. As with Ford
And then there are the wage subsidies for GM's unionized suppliers. For instance, the company likely will have to pay as much as $500 million this year in wage subsidies for former GM workers now in the employ of Delphi, GM's former parts division.
I could go on. For instance, I could mention the high-horsepower gas guzzlers with which GM showed up recently at the 2007 automobile show in New York, or the company's having slipped behind Toyota
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