GM swings to quarterly loss
A 40-day-long union strike dealt a big blow to GM's bottom line, according to results posted by the auto maker on Wednesday.
Operating profit fell 96% at General Motors as the strike that shut down factories last fall cost it $3.6 billion.
It also got dented by a drop in income from its China operations, where vehicle deliveries slid.
It all led to a net loss for GM in the latest quarter. But its earnings per share beat Wall Street forecasts, so shares rose in early trading Wednesday morning.
GM also forecast flat profits for this year, a day after rival Ford Motor issued a 2020 forecast that disappointed Wall Street.
Ford's shares fell further Wednesday. It lags Tesla in developing electric car technology. Tesla shares, meanwhile, have been on a tear, and its market capitalization is now four times larger than that of Ford's. But after a six-day winning streak, shares of Tesla fell Wednesday, after a senior executive said the coronavirus outbreak will temporarily delay delivery of some Model 3 cars.
