Cost-cutting puts GM on healthier footing

GENERAL Motors posted a third-quarter net loss of $US115 million ($A150 million) last week, which was a marked improvement on its $US1.7 billion loss over the same period last year.

The result, which GM management attributed to its turnaround activities such as cutting labour and health-care costs, was much better than the US financial market expected.

The world's biggest car-maker lost $US10.6 billion in 2005, and claims it is on target to cut $US9 billion in operating costs this year.

Such is GM's healthier prognosis, its chairman and CEO, Rick Wagoner, is being described as the "comeback kid" but some North American newspapers.

Meanwhile, DaimlerChrysler last week posted a $US1.12 billion Q3 profit, notwithstanding the fact that the Chrysler group had an operating loss of $US1.46 billion – well down on the $US393 million profit it posted for the same period last year.

A resurgent Mercedes had an operating profit of $US1.25 billion (up a massive 127 per cent). DaimlerChrysler said it still expected a full-year profit of around $US6.29 billion.