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GM posts whopping $39B loss for 3Q


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GM posts whopping $39B loss for 3Q due to a charges related to unused tax credits

By TOM KRISHER (AP Auto Writer)

From Associated Press

November 07, 2007 8:46 AM EST

DETROIT - General Motors Corp. posted a company record $39 billion loss in the third quarter, as a charge involving unused tax credits brought an abrupt end to a string of three profitable quarters for the nation's largest automaker.

The loss reported Wednesday was one of the biggest quarterly corporate deficits ever, and it sent GM's shares down more than 5 percent in premarket trading.

GM attributed the third-quarter loss to a $38.6 billion noncash charge largely related to establishing a valuation allowance against accumulated deferred tax credits in the U.S., Canada and Germany, as well as mortgage losses at GM's former financial arm, GMAC Financial Services.

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