GM Posts Huge Loss

The cost of convincing its employees to leave the company led to another gaping loss in General Motors'(GM Quote) second quarter.

GM lost $3.2 billion, or $5.62 a share, in the quarter, including a charge of $3.7 billion to fund employee buyouts as part of an ongoing cost-cutting campaign. A year ago, GM lost $987 million, or $1.75 a share, in the second quarter.

Excluding the buyout charge and other items, GM earned $1.2 billion, or $2.03 a share, on revenue of $54.4 billion in the quarter. The numbers were significantly better than Wall Street expected. In the year-ago quarter, GM lost $231 million, or 41 cents a share, on revenue of $48.5 billion.

Overall, GM's automotive operations earned an adjusted $362 million in the latest quarter, reversing a year-ago loss of about $900 million. GM North America lost $85 million before items, narrowing a $1.2 billion loss a year ago. ...