General Motors Co. (Detroit) posted a $3.9 billion loss for 2017 because of one-time costs stemming from a new US tax law and divesting its European operations.
The automaker recorded non-cash costs of $7.3 billion for writing down deferred tax assets after a new tax law was enacted in December. That law cut the US corporate tax rate to 21% from 35%.
GM also had $6.2 billion in non-cash costs for the year from the sale of its money-losing European Opel and Vauxhall operations to PSA Group (Paris). GM had lost money in the region for almost 20 years. CEO Mary Barra cut the company’s cord to Europe.
The 2017 deficit compares with a 2016 profit of $9.4 billion. Revenue for the year fell 2.4% to $145.6 billion.
The company said it had adjusted earnings before interest and taxes of $12.8 billion for the year, about the same as in 2016.
Barra, in a statement, called 2017 “a transformative year.” The CEO is emphasizing developing self-driving vehicles. GM said late last year it plans to deploy autonomous vehicles in commercial fleets next year.
‘Reshaping Our Company’
“We will continue executing our plan and reshaping our company,” she said.
For the fourth quarter, GM reported a net loss $5.15 billion compared with a year-earlier profit of $1.8 billion. Revenue for the quarter declined 5.5% to $37.7 billion.
The automaker said it had adjusted earnings before interest and taxes of $3.1 billion for the quarter, up 19% from the same period in 2016.