Page last updated at 19:50 GMT, Friday, 23 May 2008 20:50 UK

Industrial action to cost GM $2bn

GM vehicles
Demand for larger vehicles in the US is on the wane.

General Motors has said that industrial action will cost it about $2bn (1bn) in the three months to June.

Strikes at some of its factories - and those at parts supplier American Axle - have dented production of large sport utility vehicles (SUVs) and pickups.

GM said it expected that much of the lost production would not be recovered because of the US economic slowdown and less demand for SUVs.

Shares slipped by about 5% though some of the losses were clawed back later.

GM had previously said it lost $800m in the first three months of 2008, because of the American Axle strike - which began in late February.

However the dispute is expected to end next week after members of the United Auto Workers union approved a new deal on pay and conditions.




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