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August 29, 2008 4:43:51 CDT

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GM Posts Industry Record $38.7B Loss

Posted Feb 12, 08 7:05 AM CST in Business 

(Newser) – General Motors today posted a $38.7 billion loss for 2007, the largest annual deficit ever for an automotive company, beating its own 1992 record of $23.4 billion. GM also struck a deal with the United Auto Workers on buyout options for the remaining 74,000 hourly UAW workers at US plants, reports the AP, clearing the way for low-cost replacement labor.

GM reported a fourth-quarter $722 million loss, worse than analysts projected. In a breakthough with the UAW, GM will pay retirement-eligible employees up to $62,500 to leave early, and younger UAW workers up to $140,000 to completely sever ties with GM, Bloomberg reports. The company hopes it can induce workers to leave by July 1.

Sources Associated Press, Bloomberg

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Rick Wagoner, chairman and CEO of General Motors, said the company faces a tough comeback road in 2008 as the US market continues to slow.   (Associated Press)
General Motors CEO Rick Wagoner pauses during his keynote address at the Consumer Electronics Show (CES) in Las Vegas, in this Jan. 8, 2008 file photo. General Motors Corp. has lost the sole claim it...   (Associated Press)
A Toyota vehicle is seen at an intersection next to a GMC vehicle in Detroit, Wednesday, Jan. 23, 2008. General Motors Corp. has lost its 76-year title as the world's sales leader, as totals for 2007...   (Associated Press)
Chinese watch a presentation of one of General Motors' cars during the Beijing Auto Show at the international exhibition center in Beijing in this Sunday, Nov. 19, 2006 file photo.(AP Photo/Elizabeth...   (Associated Press)
In this handout photo provided by General Motors, GM Vice Chairman Bob Lutz introduces the new 2008 Chevrolet HHR SS in Royal Oak, Mich., Thursday, Aug. 16, 2007. (AP Photo/General Motors, Jeffrey Sauger)   (Associated Press)
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