10 Nov 2011

General Motors shares fall on back of profit drop

12:57 pm on 10 November 2011

Shares in General Motors have tumbled after the company reported a fall in profit due to losses in Europe and South America.

The American car maker made $US1.7 billion in the three months to September, a decrease of 18% compared with the same period last year.

The company forecast a flat profit in the last three months of the year from a weak quarter in the same period in 2010.

GM says it will cut costs and simplify the company in order to improve its profitability.

Its rival Ford posted profits for the third quarter that were almost as high as GM's, despite sales being down a tenth.