GM Reports $5 Billion Loss Despite Record Q4 Operating Profits

Tax reform, it turns out, is costing General Motors quite a bit as the corporation recently reported a $4.9 billion loss in the fourth quarter of 2017.

That loss, though, would have been an increase in income of nearly $2 billion had it not been for a more than $7 billion noncash charge that came as a result of America’s recent tax overhaul, reports Automotive News.

As a result, the loss for the year adds up to $5.15 billion and GM’s tax bill for the year adds up to $7.9 billion.

Although the results are anything but exciting for GM, CFO Chuck Stevens argues that the results are essentially good.

“The important aspect is to look at the operating results,” said Stevens.

GM reported record operating profits in the fourth quarter, with a 7.3% earnings increase in North America and nearly doubling international earnings, the company was strong despite its big tax bill.

Operating profit at the manufacturer rose 10.7%, which makes 2017 the third straight year above 10%.

“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year,” said Mary Barra, CEO, in a statement. “We will continue executing our plan and reshaping our company to position it for long-term success.”