In a move that signals another round of trouble for automakers operating in the Venezuela, General Motors expects to record a pre-tax charge of approximately $600 million due to the company’s devaluation of its currency.
The “re-measurement” charge is for the Automotive cost of sales in the South American country for the second quarter of 2015, GM said in a new filing with the Securities Exchange Commission. GM will report its second-quarter financial results July 23.
It will be treated as a special charge for EBIT-adjusted reporting purposes. GM does not expect this decision to impact its South American or Venezuelan operating results, nor does it believe it will affect 2015 adjusted free cash flows, according to GM’s filing with the SEC. (more…)