GM - Biggest Loss Ever for Auto Co.

[Issachar]

Sort of ironic to post this with another thread going on about how to bring more manufacturing jobs back to America ...

DETROIT (AP) -- General Motors Corp. is reporting the largest annual loss ever for a U.S. automotive company as it offers a new round of buyouts to 74,000 U.S. hourly workers.
GM says Tuesday it lost $38.7 billion in 2007. more (http://biz.yahoo.com/ap/080212/earns_gm.html)

Issachar

[4JesusLove]

US Stocks Head for Higher Open
Tuesday February 12, 7:42 am ET
By Tim Paradis, AP Business Writer
US Stocks Head for Higher Open After GM Announces Buyout; Home Lenders to Help Borrowers


NEW YORK (AP) -- U.S. stocks headed for a higher open Tuesday after General Motors Corp. said it is offering a fresh round of buyouts to U.S. hourly workers in a bid to shed costs.
GM said it is offering buyouts to all 74,000 of its U.S. hourly workers who are represented by the United Auto Workers. GM also reported losses of $38.7 billion in 2007, the largest annual loss for an automotive company.

more



http://biz.yahoo.com/ap/080212/wall_street.html

Wierd!

[Issachar]

It is weird, but it happens because the shedding of that many jobs will increase the profitability of GM .... at least, that is their hope. Of course, 74,000 will be without a job that paid around $29 per hour plus fantastic benefits (imho, too many to be sustainable) and if they get another job it will likely be 8-13 dollars per hour. But Wall St. only has one thing in view and it's a short sighted view at that; profit. Most economic "bubbles" are created because of the short view. It's a part of the "get rich quick" mentality that pervades the US.

Issachar

[cbressler1976]

It is weird, but it happens because the shedding of that many jobs will increase the profitability of GM .... at least, that is their hope. Of course, 74,000 will be without a job that paid around $29 per hour plus fantastic benefits (imho, too many to be sustainable) and if they get another job it will likely be 8-13 dollars per hour. But Wall St. only has one thing in view and it's a short sighted view at that; profit. Most economic "bubbles" are created because of the short view. It's a part of the "get rich quick" mentality that pervades the US.

Issachar

This breaks my heart....it can happen to anybody....people will lose their houses....vehicles...and possibly families(over the stress) from this...I will be :praying for those people....who knows....maybe my family is next??

[Tall Timbers]

I suspect that both GM and Ford are dangerously close to bankruptcy. For years both of them have been making huge profits on their large trucks while losing on just about everything else. Now with fuel prices what they are, the market for the bigger trucks is shrinking a bit.

I think the only reason Toyota hasn't entered the market with a truck that equals the 3/4 or 1 ton class of GM and Ford (though Toyota has come close) is that Toyota realizes that if they did both GM and Ford would go down quickly and not only does Toyota recognize that that would be too disruptive, but America would also likely blame Toyota, even though it would only be the fault of GM and Ford, neither of which seem able to compete on product and profits.

disclaimer: I own 2 Ford F250 PSD 4x4 Superduty Crewcabs, 1 Honda Fit, 1 Toyota Corolla.

Lord help this country, we need your help.

[anath]

This breaks my heart....it can happen to anybody....people will lose their houses....vehicles...and possibly families(over the stress) from this...I will be :praying for those people....who knows....maybe my family is next??

praying for us all :pray

[Eternally]

Yep, EXACTLY why my husband lost HIS job last WED! He worked for a MAJOR automotive electronics parts supplier. out the door after 28 years!

[Rosemarie]

I will only buy American cars... My first car was a 55 chevy belaire and my latest is a 99 Malibu. No problems other than a rear brake light and freon for air conditioner. Love this car.

If we want to keep jobs here in USA, buy american as much as you can. All my family owns ford, chevy trucks, vans and it makes us proud to drive them.

We live close to Honda plant and know people who work there. Good cars and provide many jobs, but I am just hooked on the cars I grew up with.

JMO.

[SumSam]

I suspect that both GM and Ford are dangerously close to bankruptcy. For years both of them have been making huge profits on their large trucks while losing on just about everything else. Now with fuel prices what they are, the market for the bigger trucks is shrinking a bit.


The pity of it all is, for years and years when GM and Ford rolled around in profits they didn't see fit to invest into hybrid research. Had they put enough investment into it, by now hybrid vehicle prices would have dropped enough for them to become mainstream. We'd have cars routinely running up mileage in the 45-60 mpg range - not to be sniffed at.

Of course, now Toyota and Honda have a head start here. Its just a long history of not keeping an eye on future trends for GM and Ford.

[Nova]

The pity of it all is, for years and years when GM and Ford rolled around in profits they didn't see fit to invest into hybrid research. Had they put enough investment into it, by now hybrid vehicle prices would have dropped enough for them to become mainstream. We'd have cars routinely running up mileage in the 45-60 mpg range - not to be sniffed at.

Of course, now Toyota and Honda have a head start here. Its just a long history of not keeping an eye on future trends for GM and Ford.

Sadly I agree. Playing catch up doesn't work well.

Plus, from the little I've read, the unions are making it hard for them to stay in business. Seems like there should be more flexibility. Afterall, if the plants close, there go the jobs. Yep there is a good package. But better to have long term employment.