General Motors today reported a third-quarter net loss after a $2.2 billion write-down of its stake in the auto operations of Italy's Fiat SpA, but its shares rose on better-than-expected operating results.
The world's largest car manufacturer, which has used generous incentives to keep its US sales going, also raised its earnings outlook for the year.
GM's zero-per cent financing deals boosted its US vehicle sales and market share during the third quarter and strong sales of its highly profitable trucks also raised its profit margins.
But due to the stock market meltdown this year, GM said its assets in its US pension plan have dropped about 10 per cent this year.
As a result, its pension expenses could rise by roughly $1 billion after taxes, or around $1.80 per share, next year based on prevailing discount rates, Chief Financial Officer Mr John Devine said during a conference call.
