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GM posts record $38.7 billion loss for 2007

GM posts record $38.7 billion loss for 2007

Alex Kaufmann February 12th, 2008 Alex Kaufmann By Alex Kaufmann Author February 12th, 2008
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December 31st, 1969 GM’s financial results for 2007 have finally been revealed and as predicted its net loss for the period amounted to a whopping $38.7 billion, a new record for the General. Of course, most of this figure is the result of a tax write down undertaken in the second half of last year but GM's continuing operations were still in the red. The carmaker’s adjusted net loss came in at $23 million, down from an adjusted net gain of $2.2 billion just one year prior. Sales were up 3% last year to 277,000 units, the second best result in GM’s 100 year history, but revenues were down on last year’s result. GM made $181 billion in revenue in 2007, compared with $206 billion in 2006. Officials blamed the lackluster result on the carmaker’s GMAC financial services unit, which remained unprofitable last year, reports Automotive News. This year’s result is expected to be significantly better as GM is set to offer buyouts or early retirements to all 74,000 U.S. hourly workers represented by the UAW, which would then allow the carmaker to start hiring lower-cost replacements.
GM posts record $38.7 billion loss for 2007

GM posts record $38.7 billion loss for 2007

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GM’s financial results for 2007 have finally been revealed and as predicted its net loss for the period amounted to a whopping $38.7 billion, a new record for the General. Of course, most of this figure is the result of a tax write down undertaken in the second half of last year but GM's continuing operations were still in the red. The carmaker’s adjusted net loss came in at $23 million, down from an adjusted net gain of $2.2 billion just one year prior.

Sales were up 3% last year to 277,000 units, the second best result in GM’s 100 year history, but revenues were down on last year’s result. GM made $181 billion in revenue in 2007, compared with $206 billion in 2006. Officials blamed the lackluster result on the carmaker’s GMAC financial services unit, which remained unprofitable last year, reports Automotive News.

This year’s result is expected to be significantly better as GM is set to offer buyouts or early retirements to all 74,000 U.S. hourly workers represented by the UAW, which would then allow the carmaker to start hiring lower-cost replacements.

Tags: Industry, General Motors

Posted in: News


Comments (6 total)

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  1. By rnsaza #1, Posted: 2/12/2008

    Ouch!!

  2. By chris #2, Posted: 2/12/2008

    I love how they made this announcement 3 months ago and all the press said "GM HAS LARGEST SINGLE QUARTER LOSS EVER!!!" and now... that same change has lead them to have the "SINGLE LARGEST ANNUAL LOSS EVER!!"...... gives the public a really awesome view of GM... i mean... it was 40 billion they lost 3 months ago,.. and now your telling us they lost another 40 billion? no.. its the same 40 billion...

    ....but in the public's mind... GM's lost almost 80 billion in the last couple months.. my god.. im clearly not going to buy GM cars cause theyre going to be bankrupt in 2 years.. and then i wont be able to get parts for my inferiorly built car when it starts falling apart.... OMFG IM GOING TO GO BUY 5 TOYOTAS.... i hate the american media.

    .......not this site though.. its your job to bring us news like this...

  3. By VanDog #3, Posted: 2/12/2008

    Now we have an exact number as to the cost of doing business with the UAW.

    just over $52000 per employee

  4. By HECTOR #4, Posted: 2/12/2008

    Chris: after $25-$30B you kind of lose count.

  5. By Gus #5, Posted: 2/12/2008

    It's astonishing no matter how you slice it.
    But why?
    The Malibu is a fantastic car, so are most of the Cadillacs, the Corvette. Certainly the Silverado and Yukon are good at what they do, if out of place these days. The Volt is innovative at the very least, the Camaro hits some people's buttons.
    I just don't see GM as such a huge loser as it is from a product perpective, but maybe I just have no clue...

  6. By SuperSkyline89 #6, Posted: 2/13/2008

    The Malibu is still new, Cadillac's are just starting to become the cars they always should have been, Corvette is a sports car and they never carry a manufacturer. Trucks are the big problem here. They made up half of American manufacturer sales but now people are finally starting to realize that they never use them for any real truck things (so the gas isn't worth it anymore) and less people are buying them. The Volt sounds good but no one knows how popular it'll be and the Camaro isn't out yet. After years of building up a crappy reputation, they gotta work really hard to come back. Sales are all about perception, and that perception is that GM doesn't care how much quality goes into their cars so the sales reflect that. The fact that GM has so many brands could be a big reason. They have too many similar products that are no better than each other, they only have a different name on them.

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