Taking a Dive – GM Losses Historical

Another hit for Detroit Automotives

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Story Published: Feb 12, 2008 at 12:22 PM EDT

Story Updated: Feb 12, 2008 at 12:22 PM EDT

Turn around – when it’s your body it’s a simple thing to do – you just walk in the other direction. Turn Around when it’s the automotive industry, that’s not so easy to accomplish. You can see it, but it’s much harder to achieve it.

General Motors Corporation reported their 4th quarter earnings for 2007, and their overall annual earnings for 2007. They lost $38.7 billion last year which is the largest annual loss ever for a U.S. automotive company. The loss topped the previous record GM set in 1992, when it lost $23.4 billion.

The number one automaker presented a number of breakthrough cars and trucks in the U.S. and around the world, and were quite pleased with the positive trend they have a lot more work ahead of them in order to achieve a positive cash flow and realize an acceptable profit margin.

To say that the picture was bleak would be an understatement. To assist in changing the color of their bottom line, GM rolled out their latest buyout offer which gives workers several choices to all 74,000 workers in the U.S.

Workers who are retirement-eligible will get between $45,000 and $62,500 as an incentive to retire - depending on their skill level. Younger workers can get up to $140,000 if they take the buy out and cut all ties with the company.

GM expects the majority of workers to leave by July 1, 2008. Automotive manufacturers Ford and Chrysler are offered similar programs to trim their ranks of higher-paid, veteran workers earlier this year.

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