GM Posts Loss on North America; Overseas Profit Rises

GM Posts Loss on North America; Overseas Profit Rises

www.bloomberg.com

Feb. 12 (Bloomberg) -- General Motors Corp., the world's largest automaker, posted a fourth-quarter loss on shrinking sales in North America while overseas revenue rose.

GM reported a loss of $722 million, or $1.28 a share, after a year-earlier net income of $950 million, or $1.68. The Detroit- based company had a profit after excluding one-time items, and automotive revenue rose 7 percent to $46.7 billion, helped by gains in China and Brazil.

The results suggest Chief Executive Officer Rick Wagoner is delivering on his goal to lift overseas sales while cutting expenses at home. He said he'll offer buyouts to speed the hiring of lower-paid new workers in the U.S., where industrywide sales are projected to fall to a 10-year low in 2008.

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Another losing quarter for GM. I think, if I'm not mistaken, GM posted a pretty good size loss in July of last year.

So, GM offers buy outs to their employees so they can hire NEW lower-paid workers. With recession looming, I'm not sure how many employees are going take the bait. And it's not always about money. Sometimes it's about the benefits like health insurance.

A friend of ours retired from GM and he's not sure how long his pension check will continue to arrive in his mailbox.

Tough times.

www.bloomberg.com
(visit the link for the full news article)