Business

General Motors has problems again
by Barbora Misakova

It is not so long what I have written a blog about General Motors and its problems with sales which decreased a lot in a third-quarter. Now it looks they have real problem with have a name & biggest annual auto loss. But we shouldn't see black cloud above the General Motors because the largest problems are with GM Europe; it reported a profit of only $55 million what is quite nothing in comparison with last year's $357 million. Other divisions are quite successful & those in Latin America, Middle East and Africa reported record in earnings - $1.3 billion what presents almost doubled amount in comparison with the last year. It seems to me that every time when some of the biggest and the most powerful corporations are having troubles, their chairmen and chief executives are still smiling and saying "everything is ok." This time I don't think everything is all right whereas lot of workers from GM will be fired. Although we still don't have the real number of workers who will be shed, it could be high. According to new contract with the UAW (United Auto Workers) there could be 16,000 of new workers who will replace those others. GM is going to implement not only lower wages but also lower overall worker headcount. Stew Low, GM Canada spokesperson said it right: "Any time the corporation doesn't make money that affect everybody." Every company is then trying to save money, reduce its costs and everything do more effectively. Ha shortly added this situation relates only to American divisions which third-quarter charge was because of unused tax credits. On the other hand Fritz Henderson, chief financial officer, said on a conference the General Motors still has potential to increase its earnings in 2010 or 2011.

related story: http://news.yahoo.com/s/nm/20080214/tc_nm/videogames_consoles_dc;_ylt=Ah45MR.TeZaGz9AAvOlIQx0jtBAF

by Barbora Misakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 12:28 PM