What have you always wondered about the economy? Tell us

A bright spot amidst GM’s losses

Janet Babin Feb 12, 2008


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.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.