General Motors has officially announced its 2007 financial results. GM lost $23 million in 2007, compared to a net income of $2.2 billion in 2006. GM sited poor performance by its finance arm — GMAC — for the loss. When special items are included in the total — such as non-cash charges — the Detroit automaker lost $38.7 billion.
Despite the losses, GM’s core automotive business actually saw a record revenue of $178 billion in 2007 — up $7 billion from the year before. GM sites a favorable exchange rate against the weaker U.S. dollar and strong growth in developing regions for the increased revenue.
General Motors also announced another round of planned buyouts, but failed to mention how many jobs it plans to cut. The new round of buyouts will offer incentives of $45,000 for production employees or $62,500 for skilled trades. Retirement plans will also be offered to employees 50 years or older with at least 10 years of service.
No time frame was given for the buyouts.
02/12, 11:13 AM
posted by:
affliction
It’s amazing how they lose money year in and out and yet they are still in business.
02/12, 11:20 AM
posted by:
DeansterTJ
In the business world, losses and revenues are so nebulous that no one actually knows what the hell is going on.
02/12, 11:25 AM
posted by:
Z06ified
It’s not amazing, because the losses are almost all non-cash. It’s accounting B.S. for the most part. They’re not real operating losses that can cause a company to run out of liquidity. The charges this time were unused tax credits they had to write off – a big number, but all non-cash, and all irrelevant to operating financial performance.
02/12, 11:29 AM
posted by:
04focus
it’s amazing how LLN can’t differentiate cite, site, and sight. You guys must not pay your editors very well.
02/12, 11:34 AM
posted by:
Fletch
So are the former big 3 breaking the UAW with these buyouts. Yes, the UAW still exists, but the wages and benfits are a shadow of what it was before. This is a good thing for market competition, bad thing for unskilled workers with high spending habits.
Is the next step for workers to realize that if they are willing to work, that they don’t really need the union at all?
02/12, 12:08 PM
posted by:
corvette
and although all this is going on, I’m still not worried about whats going to happen to GM.
02/12, 12:27 PM
posted by:
CTS DRIVER
27 million is pennies compared to the 10 billion a year they were losing, and record revenue means they are turning around. good its about time.
02/12, 12:32 PM
posted by:
DeansterTJ
^ Agreed, they use “failed” quite a bit. It’s called projection – when they believe they are failures at journalism, then they toss the word around all the time.
02/12, 1:04 PM
posted by:
Jazz
Yep Z06ified, My company sold less products last year but because we were more effecient we actually saw a rise in revenue.
02/12, 1:12 PM
posted by:
TOZO
LLN does realize that $23 million is chump change for GM, right? It’s that major one-time tax or something from a quarter ago in the multi-billions that stings GM.
02/12, 2:06 PM
posted by:
johnnycanuck
I’ve said this before: there is just as much dead wood floating around at the management and executive level as there is amongst bargaining unit members. My biggest qualm with unions is that it is tougher to oust one idiot from his job in a union than it is to fire an idiot who is management. Job security is one thing, but unions carry it to the extreme.
02/12, 3:12 PM
posted by:
C6Racer
UAW has to die. Period.
02/12, 4:27 PM
posted by:
DrFill
Either overpay your current workers, or underpay new workers, which Gm would like to do, and take advantage of the weak economy/job market.
Can’t blame them for tryin’. It’s business. Nothin’ personal.
GM is light years ahead of Chrysler/Ford as far as market value/cap/costs management
DrFill
02/12, 5:28 PM
posted by:
hateful83
Regardless, it’s good to see more job loss in America. Quite a nice trend we have going…. and if it’s a tactic to hire cheaper workers then by fairness they should **** can the early retirement and offer these people their jobs at a lower wage. Might be better than no job at all.
02/12, 7:48 PM
posted by:
1c3d0g
Z06ified: oh well, when you put it that way, it makes all of these losses look a bit better. I feel relieved now knowing that GM isn’t in such deep crap as it used to be and is constantly improving.
02/14, 1:36 PM
posted by:
tripleonefive
ha
02/16, 2:34 PM
posted by:
jackjimturkey
187out,Z06ified:
I’mpretty sure the only reason my job pays a good wage is the company’s fear that we’ll unionize.
Management’s goal is to pay employees as little as it can get away with.
02/25, 12:51 AM
posted by:
Johnsam
with Union is for job security and protects job from fired… I dont mind to keep Union or not …. dont matter to me and I loved to work build cars & trucks for 35 yrs with GM …. then left plant, you type called boring job, same job on lines that is your choice… to me I had lot of fun build cars and enjoy on line No matter how much I earn money just loved to build cars But only one Problem it is all salepersons they are poor salepersons to sell cars they didnt offer asking customers “may I help you” or offer get coffee or drink or food for customers feel like at home I remember when I buying cars they give free oil for frist 500 miles now they dont do that anymore that the problem and some saleperson dont feel “welcomes to GM….” and some saleperson have bad attidutes, Rule Number One is Always have customers Number one, salepersons cant said hold on Im on phone…. thats is rude…. thats why they have poor sales …..