I heard this on the news this morning.
Honestly I thought GM was in better shape. Maybe this is part of the reason for the recent RWD platform shakeup...
Top Automaker Lost $38.7B In 2007
POSTED: 7:11 am EST February 12, 2008
UPDATED: 7:24 am EST February 12, 2008
General Motors Corp. is reporting the largest annual loss ever for a U.S. automotive company.
GM said Tuesday it lost $38.7 billion in 2007. The loss largely was due to a third-quarter charge related to unused tax credits.
The loss topped the previous record GM set in 1992, when it lost $23.4 billion. That's according to Standard & Poor's Compustat.
GM said its automotive business saw record revenues of $178 billion in 2007. That's up $7 billion from a year ago thanks to growth in emerging markets and favorable exchange rates.
But GM's North American division continued to struggle, posting a $1.5 billion loss for the year.
GM Offers Buyouts
General Motors Corp. is offering a new round of buyouts to 74,000 U.S. hourly workers, the top American automaker announced Tuesday.
GM will give workers several choices. Retirement-eligible workers 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 leave and cut all ties with the company.
In December 2007, GM and the United Auto Workers union reached an agreement on what the company was calling the first phase of a comprehensive special attrition program. Details of this program were rolled out to employees at select locations last month. Those employees are now eligible for the enhanced provisions of the new agreement.
"We've worked with our UAW partners to ensure our employees have a variety of attractive options to consider," said Rick Wagoner, GM Chairman and CEO. "The special attrition program is an important initiative that will help us transform the workforce."
GM said it expects the majority of workers to leave by July 1.
Ford Motor Co. and Chrysler LLC already have announced similar buyout programs.
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