General Motors (GM) announced Tuesday it will lose $ 7 billion due to American tax reforms but expects this year's earnings to be comparable to solid results in 2017.
GM says the losses were due to calculations deferred tax assets and will be acquired in the fourth quarter, similar to other large companies announcing similar action after the American tax reform.
But the carmaker said the 2018 results would "generally be aligned" with last year's revenue, driven sales which is strong in North America and China.
American auto sales overall declined in 2017 for the first time since the financial crisis, although sales remained solid amid an improving job market and higher consumer confidence.
GM highlights year 2018 which is preoccupied with the planned launch of SUVs and pickup trucks, the backbone of the manufacturer's sales in America and the sumbe (19659002) The company also forecast "strong" sales in China and "sales improvement" in South America.
While the positive economic trend is still in place for 2018 and other signs of growth are getting stronger, analysts assess the prospect of higher interest rates by the Federal Reserve as a risk to future American car sales. [ka/al]