General Motors Reports Biggest Ever Automotive Loss
General Motors has reported an annual loss of $ 38.7 billion at the end of 2007, which was largely due to write down tax credits, in the third quarter, that were expected to retire unused. General Motors has offered voluntary buy outs to all 74,000 members of its union represented US workforce. This would enable the company to make a further transformation of its workforce, as part of its long standing process of reorganization, the need for which has come in the face of its declining market share.
However General Motors Corp Chief Executive Officer Rick Wagoner has said that he has a recovery plan in place and it is working. General Motors has posted increased sales in Russia, China and Latin America and money saving labour agreements may help GM reduce their losses.
Despite all of this, General Motors still remains the world’s largest automaker outselling Toyota by just 3000 cars last year. It has remained profitable in every region except North America, which is suffering due to an over all economic recession.
General Motors doesn’t expect to see any significant earnings at least till 2010 and is in the process of cutting down its work force and labour costs and will be transferring its retiree health care costs to a new UAW-run trust.
| We offer SAP Reports on new build houses. |
Discussion Area - Leave a Comment