Domestics make the world go round and hearing of such a staggering loss makes me weep. For North American car manufacturer General Motors this was an expected announcement, based on 07 quarter reports, but it doesn’t make it hurt any less. $38.7 to the red side of the spectrum is no way to end a year, but there is only one way out, up. Starting anew has made national news with GM offering to buy out more than 74,000 U.S. workers, to replace them with lower paid ones.
“We’re pleased with the positive improvement trend in our automotive results, especially given the challenging conditions in important markets like the U.S. and Germany, but we have more work to do to achieve acceptable profitability and positive cash flow,” Wagoner said in a statement.
It looks like years of bad decisions have finally caught up with the manufacturer. Furthermore the elders at GM have accepted that no significant profits will be met until sometime in 2010, by staying focused on reducing work force and reworking health benefits.
“We need to get all the structural costs down,” Chief Financial Officer Fritz Henderson said. “We need to step on the gas in terms of how we’re performing in the market as well.”
More on General Motors loss in 07 can be found over at mLive.com.