arges totaling $133 million, or $0.23 per share, related to the previously announced restructuring of its affiliate Isuzu Motors Ltd. GM earned $477 million, or $1.03 per share, in the quarter including the charges. GM financial results described throughout the remainder of this release exclude the charges relating to Isuzu unless otherwise noted. "We had a reasonably solid quarter considering lower North American production to ensure appropriate levels of inventory in the context of moderating industry demand and the prevailing tough pricing conditions," said GM Chairman Jack Smith. Cash and net liquidity both increased during the second quarter of 2001. Cash, marketable securities, and assets of the Voluntary Employees' Beneficiary Association (VEBA) trust invested in short-term fixed-income securities, excluding Hughes, totaled $11.1 billion at June 30, 2001, compared with $9.4 billion at March 31, 2001, bringing net liquidity up $1.4 billion, to $1.9 billion. The second-quarter results compare with record performance in the prior-year period when GM earned $1.8 billion, or $2.93 per share, on revenue of $48.7 billion. The highly competitive pricing environment in the United States was exacerbated by the strength of the U.S. dollar compared with key European and Asian currencies. The currency exchange rates resulted in a distinct pricing advantage in the United States for European, Korean and Japanese manufacturers who have made significant gains in U.S. market share and increased the pricing pressure on U.S.-based manufacturers. "We maintained momentum during the quarter as vehicle sales were stronger than expected in North America," said GM Chief Executive Officer Rick Wagoner. "We're moving faster to deliver innovative new products and services and intensifying actions to lower our structural costs." "We have significantly strengthened our North American product portfolio this year with the introduction of new sport-utility and in...
