GENERAL MOTORS POSTS RECORD $38.7 BILLION DOLLAR LOSS FOR 2007
GM not only lost the title of the Worlds Largest Automaker in 2007 to Toyota...but it has also lost over $38 Billion Dollars as well. What is this coming from? With the onslaught of the new offerings from Chevrolet and the upgrades that GM has made into its cars from what they were just a short decade ago...what could have caused this massive loss. My friends at Left Lane News.com have the full skinny!
Lets hope that GM can turn this around and that it and Ford Motor Company can climb back and whittle away at Toyota and knock it from the top some day.
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.