A bright spot amidst GM’s losses

Janet Babin Feb 12, 2008

TEXT OF STORY

Scott Jagow: General Motors could use a lifeline. A life raft.
CPR. You name it. We found out this morning GM lost more money in 2007 than any car company in any year.

Now, most of that was a one-time charge in the third quarter. So if you look a little closer, maybe GM’s not drowning after all. Marketplace’s Janet Babin reports from North Carolina Public Radio.


Janet Babin: GM reported a $38.7 billion loss last year. But the company saw a $553 million gain in its core automotive business.

Peter Delorenzo with AutoExtremeist.com says today’s results actually reveal a bright spot. He says GM’s core business gains are proof that its turnaround plan is starting to work.

Peter Delorenzo: This was started six years ago when Bob Lutz came on board. The products they’re bringing to market now are ultra competitive from top to bottom, and this business has always been about the product.

Those successful vehicles include the new Chevy Malibu, Cadillac CTS and Buick Enclave.

GM did well overseas, thanks to the weak dollar. But the company continues to struggle here in the U.S. GM plans to offer buyouts or early retirements to all hourly union workers in the U.S. in an effort to reign in labor costs.

I’m Janet Babin for Marketplace.

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