, Columnist
How a Tax Cut Handed GM a $5 Billion Loss
Accounting rules can do strange things to the bottom line.
It has excellent tax brakes.
Photographer: Andrew Harrer/BloombergGeneral Motors Co. had a pretty good quarter in the last months of 2017. Sales of its SUVs surged, surpassing those of competitors like the Ford Escape and fueling fat gross margins. Looking ahead to 2018, the company forecasts strong earnings. And of course it’s staring at a healthy tax cut, courtesy of the administration of President Donald Trump and Republicans in Congress.
Naturally, when the time came to do its earnings call, the company reported a $5.15 billion loss for the quarter.