General Motors profit plunges 90 per cent

May 3, 2007
General Motors profit plunges 90 per cent

Washington - General Motors Corporation Thursday reported a
90 per cent drop in first quarter profits, drained down by the slump
in its mortgage branch.

Net income dropped to 62 million dollars from 602 million dollars
in the same period last year, the Detroit automaker said. Revenues
were down 16 per cent to 43.9 billion dollars.

The overall slump in the US mortgage market has seen many
borrowers overextended and unable to keep up with payments, resulting
in a domino effect throughout the industry. The increasing number of
loans to high risk lenders is coming under scrutiny by the government
and consumer groups.