GM 3Q profit from finance, not cars

GM has announced a 3Q net income of $425 million, compared to a net loss in the same period last year. The downside was that the group made more money from its finance operations than from selling cars, with profits falling in North America and a loss in Europe of $152 million. Things were better in Asia, where profits more than doubled to reach $162 million.

GM warned that declining markets in the US and Europe, currency values, increased costs of the new labour contract with unions in the USA and on-going pension costs mean that the group will not achieve its aims for 2003 in the US (to earn at least $1.7bn) nor in Europe (to lose less than $200 million). .