VAUXHALL owner General Motors today posted a loss of $1.2bn (£720m) but said it had laid a "solid foundation" for future growth.
The company, which confirmed this month that it was keeping its European arm instead of selling it to Magna, today said it was making "continued progress on structural cost reductions" as it continues its battle to cope with the slump in the worldwide car market.
For the period from July 10 to September 30, GM posted a managerial net loss of $1.2bn and a loss on earnings before interest and tax of $261m (£156m).
Today’s figures cover the first months of the so-called "new GM", the restructured company which emerged from GM’s bankruptcy proceedings in the US.
Overall, GM posted revenue of $28bn (£16.8bn) in the third quarter of 2009 – up approximately $4.9bn (£2.9bn) on the "old GM" revenue for the previous three months.
GM said sales were stabilising while it was also optimistic about the prospects of other new models, including the Astra. The new Astra, which will be sold under the Opel and Vauxhall brands, is made at Ellesmere Port where GM Europe employs 2,100 people.
GM also confirmed it was speeding up plans to repay the loans the US and Canadian governments made to keep it afloat. It will pay back the first $1.2bn (£720m) in December.
President and chief executive Fritz Henderson said: "We have significantly more work to do, but today’s results provide evidence of the solid foundation we’re building for the new GM.
"With a healthier balance sheet and a competitive cost structure, our focus is on driving top line performance. We’ll achieve that by winning customers over, one at a time, with vehicles that deliver performance and value."
