AP: GM Posts Biggest Annual US Auto Loss
General Motors Corp. reported a $38.7 billion loss for 2007 on Tuesday, the largest annual loss ever for an automotive company, and said it is making a new round of buyout offers to U.S. hourly workers in hopes of replacing some of them with lower-paid help.This article is literally packed with information and correctly parsing it is the work of an economic analyst.
...it will be able to replace up to 16,000 workers doing non-assembly jobs with new employees who will be paid half the old wage of $28 per hour.
It indicates that the recession, which the Bush administration claims does not or will not exist, is deepening.
'Consumers' are not buying. On the other hand the products that GM produces do not reflect the needs of the 'consumer' from the point of view that they are not fuel efficient. Only the Prius and the Honda hybrid get over 35 mpg's, the only two cars to achieve that level of efficiency now sold in the USA.
Inflation and specifically the price of fuel makes efficiency a top priority.
Notice that Toyota is doing fairly well on the New York Stock Exchange: Toyota
Then there is more unemployment, along with reducing the wage for future hourly employees. How will those worker's making $14 per hour instead of $28 fair with rising prices in fuel. On the other hand if you read about the economic condition of the State of Michigan, you will see that unemployment and recession are common. Housing prices in Flint are around $105 grand on the average, way below the countries' average.
2 comments:
Everything people need to live is inflating and everything else including their wages ( if they work in the private economy that is) is deflating and deflating rapidly. Its a disaster in the making. GM deserves the ash heap for ignoring reality just like BV$H. The consumer is voting NO to big American Auto because they don't get it. You'd think a few yrs. of 80.00 oil would wake them up wouldn't u? I guess not? Oh well? I guess they'll be soon begging to the taxpayer to bail them out because other wise they'll threaten to dump the rest of their plants and move to China. Its called Extortion and its a booming Industry in Amerika today.
Corporate welfare to the rescue. We will see. Keep your eyes out for the article on a bailout.
I went to buy a new truck last summer. I wanted a sport truck, 4 cylinder type. Chevy used to make one, not anymore, only full size. In fact there were only two that I could see - Ford and Toyota, the mazda is the same as the ford.
I went to dodge and I was shocked - Four door monsters getting under 15 a gallon, I laughed at the guy.
American auto got very very freekin lazy under Bush. They've done nothing.
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