GM Posts Huge Loss, Offers All Retirement Packages

  • February 13, 2008
GM may have strong sales of key new vehicles, but it posted record losses for 2007.

The company posted a $38.7 billion loss for 2007, much of it from losses at GMAC financial services company, in which it has a 50% stake, and from a $38 billion future-tax benefit write down.

In an effort to trim rolls, it is offering a $62,500 retirement package for each of its 74,000 blue-collar workers. The company inked a deal with the UAW that means new hires will make less and have smaller benefits packages.

Automotive business saw a $7 billion improvement to $178 billion last year because of GM's success in emerging markets like China.

--Karl Greenberg

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