GM is better at losing money then they are at making cars, says the Associated Press. The auto-maker lost $38.7 billion in 2007, a record for the industry. Still, they’re optimistic:
During a conference call with analysts and media, Chief Financial Officer Fritz Henderson said 2008 will be difficult, but the company sees the potential for significant earnings increases by 2010 or 2011 once it reduces its work force and labor costs and transfers its retiree health-care costs to a new UAW-run trust.
The Detroit-based automaker said it was offering a new round of buyouts to all 74,000 of its U.S. hourly workers who are represented by the United Auto Workers.
GM won’t say how many workers it hopes to shed, but under its new contract with the UAW, it will be able to replace up to 16,000 workers doing non-assembly jobs with new employees who will be paid half the old wage of $28 per hour.
Ouch. Let’s hope the predicted tsunami of bad auto loans doesn’t affect their plans.
GM posts $38.7B loss for 2007, offers buyouts to 74,000 hourly workers [LA Times]