GM posts $265 million loss

GM's North American operation's losses have contributed to a $286 million loss for the entire GM organization. General Motors lost about $1.2 billion at its North American division, with global profits helping to easy the pain over all. GM Europe's turn around added $37 million to the bottom line. These numbers cover the second quarter, March-June 2005. Time will tell if the employee discount promotion helped the North American operation at all. With automotive manufacturing becoming a very low profit margin venture, it is no wonder the mis-steps of GM has lead to this poor performance. Perhaps by hiring Morgan Stanley analyst Stephen Girsky will help guide GM out of this predicament. Girsky has been a harsh critic of GM's operations, and it will be interesting to see if his criticism in the past will give him insight into what changes will contribute to a long-term turnaround.