News Summary: GM 2Q earnings fall 41 percent

AP News
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Posted: Aug 02, 2012 4:01 PM

THE NUMBERS: General Motors' second-quarter earnings fell 41 percent as European losses offset strength in North America and China. But the company still made $1.5 billion in the quarter.

THE PROBLEMS: GM has too many factories in Europe, where economic problems have chased people away from buying cars. Sales also are starting to slow in the U.S., GM's biggest income source.

THE SOLUTIONS: GM says it's restructuring in Europe and hopes to have a cost-cutting deal with German unions by the fall. It also plans to revive North American sales by revamping 70 percent of its models in the next two years.