GM Announces Less profits in First Quarter

04/23/96

GM announced profits in the first quarter of this year at $1 billion, less than half of the profits it saw in the first quarter of last year. GM blamed the dip in profits on the 17 day strike at 2 brake plants that that crippled their production nationwide. The automaker estimated that the strike cost them $900 million.

GM Chairman John F. Smith Jr said, "Clearly our financial performance in the first quarter of 1996 was impacted by the strike and was certainly not indicative of GM's continuing profit improvement."

During the quarter, GM dealers delivered 2.06 million cars and trucks worldwide, for a 16 percent share of the worldwide market. During the first quarter of 1995 their market share was 15.8 percent.

GM's first-quarter car inventories on dealer lots in the United States showed an 84 day supply--down from 90 days a year ago. The company had a 81 day supply of trucks, compared with 78 day supply during the first quarter of 1995.

Paul Dever -- The Auto Channel