General Motors Posts a Loss From Asset Sale, but Shares Rise

General Motors Posts a Loss From Asset Sale, but Shares Rise

- in Automotive
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Mary T. Barra, chairwoman and chief executive of General Motors, speaking in Shanghai last month.

Credit
Aly Song/Reuters

General Motors, the nation’s largest automaker, reported a third-quarter loss of $3 billion on Tuesday, stemming primarily from a large accounting charge for the sale of its European operations.

Here are highlights of the G.M. announcement:

• The company said it took a $5.4 billion charge related to unrealized tax assets and pension costs associated with the sale of its Opel and Vauxhall divisions to the European automaker PSA Group.

• G.M. also said that its pretax income in North America fell 42 percent from a year earlier to about $2.1 billion, as it reduced production at several plants to account for lower sales of some vehicles and changeovers to new products.

• A year ago, the company earned $2.8 billion in the third quarter.

• G.M.’s chief executive, Mary T. Barra, said the quarter reflected “solid results,” as the automaker continued its transition away from underperforming international markets such as Europe, and focused more resources on new technology such as electric-powered and self-driving vehicles.

• Investors reacted positively to the earnings report, with shares up 4 percent in premarket trading. G.M. has the highest valuation of American automakers.

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