 The American love affair with SUVs seems to be coming to an end |
General Motors has posted a quarterly net loss in the face of high costs, reduced market share and flat sales of sport utility vehicles (SUVs). GM, the largest carmaker in the world, said its fourth-quarter net loss was $4.8bn (�2.7bn), from $99m last year.
Revenue fell to $51.2bn, from $51.4bn during the same period in 2004.
"2005 was one of the most difficult years in GM's history, driven by poor performance in North America," GM chief executive Rick Wagoner said.
Stake builder
Rising materials and labour costs, as well as a loss of market share to Japanese rivals and a drop-off in demand for SUVs, all contributed to the malaise.
However, in a stroke of good news, billionaire investor Kirk Kerkorian has increased his stake in GM.
A regulatory filing showed that he spent $262.8m (�147m) via his firm Tracinda Corp, increasing his stake in the company to 9.9% from 7.8%.
Last November, GM launched a restructuring plan involving 30,000 job losses and nine plant closures in North America.
The carmaker has been getting ready to shed a controlling stake in its finance arm, GMAC, in order to boost its investment rating by financial agencies.
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