GM Keynote Address Spells Trouble

Rick Wagoner paused while giving his keynote address at the Consumer Electronics Show in Las Vegas. The CEO of General Motors on January 8 2008. But why report this now? It is because until today what he had to say had not been reported. I guess with the Stock Market on the roller coaster ride, the General Motors people did not want to loss any of their stock holders. So What was it that he spoke about in his Keynote address. Well, it may be better if I just cut and paste what a reporter stated in the news article.

DETROIT Feb 12, 2008 (AP) The Associated Press
--General Motors Corp. reported the largest annual loss for an automotive company Tuesday and said it is making a new round of buyback offers to U.S. hourly workers as it struggles to turn around its North American business amid a weak economy. GM said it lost $38.7 billion in 2007. The loss largely was due to a third-quarter charge related to unused tax credits. The Detroit-based automaker also on Tuesday said it was offering a new round of buyouts to all 74,000 of its U.S. hourly workers who are represented by the United Auto Workers. The 2007 loss topped GM's previous record in 1992, when the company lost $23.4 billion because of a change in health care accounting, according to Standard & Poor's Compustat. Excluding the tax charge and other special items, GM lost $23 million, or 4 cents per share, for the year, compared with a net income of $2.2 billion in 2006, beating Wall Street's expectations. Analysts polled by Thomson Financial expected GM to post a full-year loss of 95 cents per share.

GM posted a loss of $722 million, or $1.28 per share, in the fourth quarter, compared with a net income of $950 million in the year-ago quarter. Fourth-quarter charges included $622 million to Delphi Corp., GM's former parts division, for its restructuring efforts. GM reported $181 billion in revenues for the year, down from $206 billion in 2006. Its automotive business saw record automotive revenues of $178 billion in 2007, up $7 billion from a year ago thanks to growth in emerging markets and favorable exchange rates. But GM's North American division continued to struggle, posting a $1.5 billion loss for the year.

GM's results also were dragged down by its 49 percent stake in GMAC Financial Services, which lost $2.3 billion in 2007. GM reported a $1.1 billion loss attributed to GMAC. GM barely retained its title as the world's largest automaker in 2007, selling just 3,000 more vehicles than Toyota Motor Corp. GM sold a total of 9,369,524 vehicles worldwide, up 3 percent from the year before. Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.--

Now I am No Expert, but even I know that it spells trouble for the American Workers Jobs again. After all They have been sending American Jobs to their plants overseas, Laying off American Workers for Years. How do they expect Americans to by their cars if Americans do not have the jobs and incomes to buy the cars.

Just like I always say: "A Working Economy Only Works When The People In That Economy Are Working!"

Do you think that the American Major Corporations who are solely for Global Economy ever going to get it? My answer as always - They are too greedy.